Nigeria And South Africa Dominate Africa’s Fastest-Growing Companies List
The Financial Times has released its ranking of the fastest-growing African countries. The ranking, now in its fourth year, revealed that Nigerian and South African companies dominate the list, with 79 businesses from both countries featured.
This speaks to the size and entrepreneurial depths of both economies, according to the FT. It also shows that businesses from smaller countries are struggling to build a continental presence.
Nigerian companies on the list
The top three companies on the list are Nigerian: Omniretail Inc., PalmPay Ltd, and Remedial Health Inc. PalmPay is the only company that operates in more than three countries. Last month, OmniRetail raised $20 million in Series A to manage its operations in Ghana and Ivory Coast, according to TechPoint. The investment was co-led by Norfund and Timon Capital, supporting the company’s growth across West Africa.
Remedial Health was founded by Samuel Okwuada, a trained pharmacist and self-taught software developer, together with his co-founder Victor Benjamin. The company is reportedly using part of the new funding to expand the startup’s buy-now-pay-later offering to an even wider audience.
Moniepoint reached the 16th spot on the list; it was recently announced that it acquired a 78% stake in Sumac Microfinance Bank Limited. This acquisition is the unicorn’s first official entry into Kenya’s financial services scene.
South African companies on the list
Paymenow Group reached 5th place, Gobid Pty Ltd was number 6, and Drive24 Pty Ltd was 9th on the list. Fintech Paymenow has recently partnered with Neem, a Pakistani financial services provider, to expand its operations in Pakistan. Itweb reported that the company saw an opportunity to expand its business in Pakistan to sectors such as retail, logistics, healthcare, and manufacturing.
Investments in African startups
Ylva Lindberg, executive vice-president at Norfund, the Norwegian Investment Fund for developing countries told FT that investing in African start-ups has been “tough” post Covid. In 2024, Africa’s startups raised $2.2 billion in equity, grants, and debt (excluding exits). It highlights a 25% decrease compared to 2023, when startups in Africa secured $2.9 billion
The total of $2.2 billion was primarily driven by two significant deals by Nigeria’s Moniepoint and South Africa’s Tyme Group. A gross of 188 ventures secured $1 million or greater (excluding exits) in funding, 10% less given in 2023 despite the 25% dip in 2024.
Image: Remedial Health
