Top 10 Industries to Build a Startup Unicorn as a Founder in Africa

Africa has seen an explosion of startup activity and funding in recent years, with nine(9) startups reaching unicorn status. For ambitious founders looking to build a billion-dollar business in Africa, focusing on the right high-growth industries can greatly stack the odds in your favor. After analyzing investment patterns and industry growth projections across the continent, these 10 sectors show the most potential for birthing the next African startup unicorns over the coming decade:

1. Fintech

Financial technology reigns as one of the top startup sectors in Africa, with fintech companies receiving over 38% of the total funding in 2022 According to Statista. With high smartphone penetration and a largely unbanked population of over 350 million adults, fintech innovations around digital payments, lending, investing, and crypto exchanges are enormous growth opportunities. Successful examples like Flutterwave, OPay, Chipper Cash, and Wave demonstrate Africa’s ability to produce fintech unicorns.

2. E-Commerce and On-Demand Services

Booming consumer digital adoption is fueling rapid growth of e-commerce services. Jumia’s rise as Africa’s first unicorn demonstrated the prospects of online retail. Expanding internet access and faster delivery logistics are driving on-demand services too, with startups like Glovo and Bolt offering ride-hailing, food delivery and more. Existing unicorns like Takealot and emerging players have ample headroom for growth.

3. Healthtech

Africa’s massive deficits in healthcare access and financing have spurred innovative startups targeting telemedicine, hospital management systems, health insurance and pharma supply chain improvements. mPharma and Vezeeta exemplify high-traction startups ripe for unicorn status. Digital health solutions enable Africa to “leapfrog” infrastructure gaps.

4. Agritech

With a large arable land and population abounding in Africa, Agritech presents abundant opportunities across the farming value chain, from boosting yields through tech-enabled precision agriculture, to improving post-harvest handling and connecting smallholders to markets. Twiga Foods and Gro Intelligence are demonstrating how agritech can build efficiencies to unlock Africa’s vast agricultural potential and address food security challenges.

5. Renewable Energy

Africa’s acute electricity shortages have created openings for renewable energy startups scaling solar home systems, mini-grids and commercial solar farms. Players like Arnergy, SunCulture and Oolu are electrifying households and businesses lacking reliable power. With abundent solar resources and growing climate focus, renewable energy startups have bright prospects in the continent.

6. Logistics and Transport

Logistics startups are emerging to fix crumbling transport infrastructure hindering intra-Africa trade. Ethiopian unicorn Zindi applies AI to improve logistics systems. Other innovators like Lori Systems, Sendy, and Kobo360 optimize haulage and delivery across Africa through technology. Their solutions enable commerce in the face of complex geography and infrastructure deficits.Africa is predicted to be the largest consumer market in future and transportation being a vital pillar in trade, Startups in this sector are poised to reap massive gains.

7. Real Estate Tech

Proptech startups are digitizing and modernizing real estate transactions, financing and management across Africa’s rapidly urbanizing cities. With housing demand surging, platforms like Nigeria’s LandWey make the buying, selling and investing process seamless and expand access to financing. Opportunities abound for proptech unicorns serving the continent’s massive housing needs.

8. Edutech

The rapid growth in Africa’s youth population has stoked demand for education technology platforms improving access and quality of learning. Startups like uLesson, ScholarX and Eneza Education leverage mobile tech and online capabilities to deliver learning content, support exam prep, and enable payments. Africa’s thirst for education bodes well for edtech players.

9. Cybersecurity

As digital usage expands in Africa, cyber threats grow apace. Startups developing advanced data protection, identity management and other security solutions have thriving markets. Companies like Kenya’s Serianu, South Africa’s LAWtrust and Nigeria’s Klarity Analytics provide essential cybersecurity support as online activity increases.

10. Media & Entertainment

Africa’s creative talents are leveraging technology to disrupt entertainment and media. Startups like iRokoTV enable content creators to distribute African stories to global audiences. Other players like Trace TV and Multichoice have demonstrated the continent’s appetite for homegrown, Afrocentric entertainment. This sector can birth many future unicorns.

Thanks to improving infrastructure, urbanization and business environments across the continent, Africa provides fertile ground for startups in these high-potential sectors to scale into billion-dollar juggernauts. Founders with robust business models that leverage technology to solve pain points in these growth industries stand a strong chance of joining Africa’s expanding unicorn club.