Between January and September this year, West African tech companies raised $1.34 billion in investment.

According to the analysis platform Baobab Insights, the resources were raised through 105 financing deals, with fintech companies leading the way with 35 deals. Nigeria captured the largest share of investments. As of September 21, 2021, Baobab Insights reports, nearly $729.1 million was injected into Nigerian financial services companies; 68% of the total fundraising deals done in fintech in the sub-region were also done in Nigeria.

Since 2018, the fintech industry has attracted the most funding compared to other industries. This year, two West African fintech companies entered the small circle of African unicorns. These are the Nigerian payment company Opay, which reached a valuation of $2 billion following a $400 million financing round, and the Senegalese payment company Wave, which reached a valuation of $1.7 billion following a $200 million Series A round. Wave became the first unicorn in Francophone Africa. Transport and logistics companies rank second in terms of completed transactions.

Overall, West African startups perform well in terms of funds mobilization. In Q1 2021, they raised $231.7 million, sharply up from the $62.2 million raised in Q4 2020.

Chamberline Moko