Nigeria, previously the centre of venture capital funding in Africa, is falling behind the continent's other major markets when it comes to attracting investment, in a trend that one analyst says "reflects structural and long-term challenges in Nigeria's venture capital ecosystem."
In 2021, Africa's record year for venture capital with 681 fundraising rounds totalling 5.2bn, Nigeria ranked first for both deal volume and the overall amount of cash raised. That year, Nigerian startups secured around 1.8bn in funding, over a third of the continent's total and more than the continent's three other major markets - Kenya, South Africa, and Egypt - combined.
However, this status appears to be slipping. As of August 2025, more than 500 African startups had raised about 2.8bn. However, Nigeria accounted for just 186m of that. By contrast, Kenya has managed 879m, South Africa has secured 848m, while Egyptian companies have collectively raised 561m. For the first time in several years, Nigeria is firmly last among the so-called "big four" African markets.