Emerging Startups to Keep an Eye on in 2025 across West Africa
West Africa's Thriving Startup Ecosystem: Fintech, Healthtech, Clean Energy, and Agritech Lead the Way
West Africa's startup ecosystem is experiencing a significant boom, with the fintech, healthtech, clean energy, and agritech sectors leading the charge. In 2024, a pilot with GCB Bank demonstrated Lengo AI's language models, cutting response times by 62% and increasing satisfaction scores by 28%.
One fintech startup, Kofa, based in West Africa, focuses on financial tools for small and medium-sized enterprises (SMEs). The region's thriving startup scene benefits from a large, youthful population with rising smartphone and internet penetration, creating strong demand for digital financial services like payment platforms and lending apps. Lagos, in particular, ranks among the top global ecosystems for affordable and skilled tech talent.
Healthtech startups are tackling gaps in healthcare infrastructure with telemedicine platforms. Early-stage investor interest is increasing, with seed-stage investments helping new healthtech ventures develop and expand.
The clean energy sector in Africa is seeing significant capital inflows, exemplified by large recent funding rounds, including $456 million raised by Kenyan solar companies d.light and Sun King in mid-2025. Governments and international development finance institutions increasingly support renewable energy projects, encouraging startups in solar home systems, mini-grids, and energy-efficient technologies across West Africa.
Agritech benefits from early-stage venture capital focused on technology solutions optimizing the agrarian economy, including digital platforms, AI, and supply chain innovations. Agriculture remains a priority investment sector in Nigeria and wider West Africa due to its central role in the economy, with startups leveraging technology to boost productivity and market access.
Government and private sector programs provide digital skills training, entrepreneurship support, mentorship, and networking opportunities, especially in Lagos, creating conducive environments for startups to innovate and scale. Rising venture capital activity, with local and pan-African investors focusing on pre-seed and seed rounds in diverse tech categories, supports grassroots innovation and diversifies the startup base across fintech, healthtech, clean energy, and agritech.
Market potential, including the continent’s growing population, expanding middle class, and increasing digital adoption, attracts global and regional investors eager to tap into scalable African startups. Infrastructure improvements, such as better internet connectivity, digital payment systems, and energy access, underpin startup growth across sectors, although some challenges remain.
E-commerce and retail tech have secured their place as the second-largest sector, accounting for 22% of regional funding in 2023. Notable startups include Pixii Motors, an electric scooter company that aims to address West Africa's $3 billion urban mobility gap, and Yellow Card, a cryptocurrency solution provider that focuses on West Africa's remittance corridors.
In 2024, PaidHR, a Nigerian startup offering a cloud-based HR management platform, processed over $50 million in payroll transactions and achieved a 200% year-over-year revenue increase. Kofa, another Nigerian startup, has processed over $500 million in transactions for more than 100,000 SMEs by 2024.
As West Africa continues to grow, the focus will be on employment growth (+9% annually), aligning systems across borders, and scaling with mobile-first strategies in 2025. The ecosystem is catching the eye of global investors, bringing in venture capital and building partnerships between startups and established industries.
The West African startup scene is set to grow, fueled by better internet access and updated policies that could transform key industries. AI is making waves across various sectors, with companies like Lengo AI and PaidHR showcasing its potential. Kofa's influence goes beyond its direct services, contributing to the 28% growth in tech talent development in West Africa.
- In the fintech industry, West Africa's Kofa startup specializes in financial tools for small and medium-sized enterprises (SMEs), taking advantage of the region's growing smartphone and internet penetration and expanding youthful population.
- Fintech startups in West Africa are experiencing an increase in early-stage investor interest, with seed-stage investments aiding the development and growth of new ventures in the digital financial services sector.
- Significant capital inflows into the clean energy sector in Africa are demonstrated by large funding rounds, like the $456 million raised by Kenyan solar companies d.light and Sun King in mid-2025.
- The education-and-self-development sector in West Africa is benefiting from government and private sector programs that offer digital skills training, entrepreneurship support, mentorship, and networking opportunities.
- E-commerce and retail tech have become the second-largest sector in West Africa, accounting for 22% of regional funding in 2023, with startups like Pixii Motors addressing the continent's urban mobility challenges.
- Technology solutions optimizing the agrarian economy have attracted venture capital, as seen in the agritech sector where digital platforms, AI, and supply chain innovations are being developed to boost productivity and market access.
- In the sports industry, global and regional investors are attracted to West Africa due to its potential scalable startups, with partnerships between startups and established industries on the rise, especially in areas such as personal-finance, fintech, and technology.
