Kenyan entrepreneurs collected well under $800 million to clinch the top rank in Africa.

Africa: The Big Deal, a tech research firm, says 2023 was a remarkable year for African entrepreneurs, with investments rebalanced across four of the continent's main tech markets: Egypt, Nigeria, Kenya, and South Africa.

Nigeria has long earned the largest share of startup investments; however, in 2023, Kenya surpassed the West African country, receiving the most tech funding on the continent.

According to the research, Kenyan entrepreneurs collected well under $800 million to clinch the top rank in Africa.

''With just under $800 million raised in 2023, Kenya drew the highest money, accounting for 28% of the continent's total,'' the firm said.

"While it experienced a decline (-25% YoY), its share of Eastern Africa's funding increased from 86% in 2022 to 91% in 2023. During the period, 93 start-ups raised $100,000 or more, accounting for 19% of Africa's total.”

Kenyan President William Ruto announced the increased financing on X, citing the country's strategic changes that have improved Kenya's economic environment.

"I'm proud that Kenya leads Africa in startup capital, securing an impressive $800 million (Ksh 124 billion) in 2023," he said.

''Our strategic reforms have improved the business environment, making Kenya the ideal destination for investors. This achievement demonstrates our dedication to promoting innovation and economic progress. The significant money is producing new ideas, spurring technical advancements, and propelling employment development,'' he noted.

Nigerian entrepreneurs had a huge reduction in investment in 2023, with funding declining by 65.83 percent year on year to $410 million from $1.2 billion in 2022.

'Nigeria had the most drastic change in 2023. While the country still claimed the biggest number of companies to raise $100k or more (146, 29% of the continent), the amount raised was divided by three years (-67%) to reach $410 million, compared to $1.2 billion in 2022 and $1.7 billion in 2021,” according to the research firm.

''As a result, its proportion of Western African funding fell to 68%, down from 85% in 2021 and 77% in 2022. This is the lowest regional share of any Big Four market since we began collecting data in 2019," the company adds.

South Africa was the only one of the big four to not see its total funding decrease between 2022 and 2023 (+8% YoY).