Startups in Francophone Africa are closing gap with English-speaking “big four” nations

In the past few years, Francophone Africa has made huge strides in creating startups, although the startup market on the continent is still dominated by the “Big Four” English-speaking nations.
African startups continue to shatter fundraising records, but the majority of investment inflows go into those operating in English-speaking countries Egypt, Kenya, Nigeria, and South Africa — the so-called “Big Four”. They top fundraising charts each year, accounting for 75% of the funding in 2022, down from 82% in 2021. But according to a report by ‘Africa: The Big Deal’, the next four main recipients of startup funding include only one English-speaking country, Ghana, and three French speaking ones — Algeria, Senegal, and Tunisia. Startups in Ghana raised an astonishing total of $390 million in 2022 while Algeria, Tunisia, and Senegal attracted $151 million, $119 million, and $112 million respectively — a marked improvement over previous years.
There are multiple reasons why Anglophone Africa dominates the startup funding, with the determining factor being market size, language barriers and preferences also coming into play in terms of market visibility. “Most African startup founders are from the US and UK. They are naturally inclined to work with people in the Anglophone sphere because they seem to understand those markets and cultures better,“ says Francis Brou, an economics and development researcher at Bouake University in Côte d’Ivoire. “There are still very few investors from France involved in African startups. You wouldn’t put your money in a place you are not comfortable with. The way of doing things is different. The mentality is different and the regulations are different.” The influence of language and culture thus plays an important role in allocating startup funding, with Anglophone versus Francophone bonds remaining strong on the continent even in business. While Africa’s “Big Four” will likely continue to dominate fundraising in the near future, Francophone startups are making progress in closing the gap.