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Nigerian startups attracted 35 per cent of the $466m in total funding secured by the African tech sector between January and March 2024. Key sectors include fintech, healthtech, agritech, and edtech, with Lagos emerging as a major hub. Khalfan Belhoul emphasised the need for more funding for talent development and research & development.The United Arab Emirates declared its willingness to work with the Nigerian government to foster the growth of its burgeoning ecosystem of tech startups. During the ongoing GITEX Global, the largest startup and investment event in the world, in Dubai on Sunday, Khalfan Belhoul, the CEO of the Dubai Future Foundation, made this announcement.
In order to propel growth in the digital economy, Belhoul, who oversees the UAE’s smart city plan across five key business areas, emphasised the significance of encouraging innovation and forming alliances. Nigeria has produced several inventions, but more can be done. In terms of technology development, we are very much open to partnerships, but it all comes down to having the appropriate discussions,” Belhoul stated.
Given that several businesses have already started to expand into the UAE, he acknowledged the size of Nigeria’s startup ecosystem. “There is a lot of potential, and the startup scene is growing.” Belhoul’s comments coincide with Nigeria’s efforts to establish itself as a major force in Africa’s digital revolution. Fintech, e-commerce, and other technology-driven industries have seen large investments in the nation, which has a thriving tech startup culture. Key sectors include fintech, healthtech, agritech, and edtech, with Lagos emerging as a major hub, housing over 400 startups.
Nigerian startups attracted 35 per cent of the $466m in total funding secured by the African tech sector between January and March 2024, including equity, debt, and grants. According to the report by ‘Africa: The Big Deal’, which monitors deals announced by startups on the continent, Moove, a Transport Tech startup, accounted for two-thirds of the funding directed to Nigeria in the first quarter of 2024.
Data from The Big Deal further reveals that over the past five years, from 2019 to 2023, Nigerian startups received the largest share of funds raised by African startups, making up 29 per cent of the $15bn in total investments. Belhoul emphasised the need for more funding for talent development and research & development in order to secure the long-term viability of startups in response to the influx of African talent to Dubai. He stated that in order to maintain growth and competitiveness in the digital economy, “investment in R&D and talent development is essential.”
