Thanks to dynamic startups whose innovation and creativity are reshaping industries and unlocking new opportunities, Africa’s tech ecosystem is attracting billions of dollars. Youthful populations and digital connectivity are further fueling growth. From the fintech startups driving financial inclusion to the agri-tech startups improving food security, the impact of these startups is nothing short of transformational. Here are the ten most-funded tech industries:
1. Fintech (31.5%)
Fintech continues to dominate the African market, driven by a growing demand for digital financial services. At the forefront of this revolution are mobile money solutions, offering alternatives to traditional banking that appeal to millions of unbanked Africans. These digital options are not just attractive but practical, providing more portable and accessible financial services than conventional banking, often limited by paperwork and account maintenance requirements.
2. E-commerce and Retail Tech (11.3%)
E-commerce is experiencing a meteoric rise as internet penetration increases and consumer behaviour shifts online. Platforms like Jumia have set the stage, reaching millions across the continent. Retail tech is leveraging social commerce, logistics optimization, and direct-to-consumer business models, catering to the growing demand for convenient shopping experiences. For instance, a small business owner in a remote village can now sell their products to customers across the country through these platforms.
3. E-health (10.1%)
E-health startups are tackling the daunting task of improving healthcare in regions with inadequate infrastructure. Telehealth services are breaking down the barriers to medical advice, while digital platforms like Helium Health in Nigeria are transforming patient records into easily accessible digital formats. The surge in smartphone usage has made virtual care a reality, bringing healthcare within reach even in the most remote areas.
4. Logistics (6.9%)
With a fragmented infrastructure across many African regions, logistics startups are innovating to streamline the supply chain. Companies like Kobo360 offer on-demand logistics services, helping businesses transport goods efficiently. Drone deliveries are gaining traction in Rwanda and Ghana, showing the creativity of solving delivery problems in challenging terrains.
5. Agri-tech (5.9%)
Agri-tech is critical to enhancing productivity in a sector that employs over 50% of Africa’s workforce. Startups like Twiga Foods connect farmers directly to markets via mobile apps. They’re also using AI to predict crop diseases and optimise farming practices, addressing the critical challenge of food security.
6. Ed-tech (5.7%)
The continent’s education system faces resource constraints, and ed-tech startups are filling the gaps. Digital platforms provide courses and vocational training to millions. Eneza Education in Kenya, for example, offers curriculum-aligned learning via SMS, while other companies are working to expand coding and technical skills training.
7. Energy (4.9%)
Off-grid and renewable energy solutions are crucial, as only 43% of the population has reliable electricity. Solar energy startups like M-KOPA offer pay-as-you-go solar home systems, while microgrids power entire communities. These innovations are helping sustainably bridge the energy access gap.
8. Transport (3.9%)
Transport startups alleviate traffic congestion and provide mobility solutions in rapidly growing urban areas. Ride-hailing services like Bolt are popular, and some companies offer motorbike taxis for better accessibility. There’s also a focus on electric vehicles, and startups are working to provide charging infrastructure.
9. Recruitment and HR (3%)
African job markets often struggle with skills mismatches and informal hiring processes. Recruitment startups are streamlining talent searches by digitising the hiring process and leveraging AI for candidate matching. Companies like Shortlist in Kenya are finding ways to align employers with the suitable candidates, more efficiently.
10. AI (2%)
Though small, the AI sector is growing as local startups tap into machine learning for various applications. DataProphet in South Africa uses AI to optimise manufacturing processes, while other startups are building natural language processing for African languages. AI in agriculture, healthcare and education promises further transformation.
