African startups are continuing to expand across the continent and beyond. According to the table below, more Nigerian and South African startups are expanding than their counterparts in other African countries, with Ethiopia becoming the newest market of interest for startups. Fintech and mobility are the two major sectors that are recording the most expansions. 

The Patterns Behind The Expansion

• The majority of African startups’ expansions this year were accomplished through acquisitions in other countries. Mobility startups across the continent were most likely to expand through acquisition (Autochek; SWVL; Treepz, among others).

• Nigerian startups, unlike those in other African countries, were more diverse in their regional expansions, expanding across western, eastern, southern, and even outside Africa.

• Expansions from Sub-Saharan Africa to North Africa, and vice versa, were rare, with both regions preferring to expand towards the Middle East rather than into each other’s.

• While Kenya and Uganda are the most popular destinations for expanding startups in East Africa, Nigeria and Ghana are the most popular destinations in West Africa, and South Africa is the most popular destination in Southern Africa.

• The majority of the expansions are driven by startups in mobility, fintech, solar energy, and e-health.

Startups Africa 2021 Startups Africa 2021

Charles Rapulu Udoh

Charles Rapulu Udoh is a Lagos-based lawyer who has advised startups across Africa on issues such as startup funding (Venture Capital, Debt financing, private equity, angel investing etc), taxation, strategies, etc. He also has special focus on the protection of business or brands’ intellectual property rights ( such as trademark, patent or design) across Africa and other foreign jurisdictions.
He is well versed on issues of ESG (sustainability), media and entertainment law, corporate finance and governance.
He is also an award-winning writer