A business begun from scratch by its founder, using his or her own money or finding financial support from family and friends, had always been called a business before the name ‘startup’ came into vogue. Financing for a startup, which can be defined simply as a company in its fledgling stage, now includes venture capitalists, who the company’s founder convinces that the new enterprise is innovative and has great growth prospects, and crowdfunding, where masses of people buy into the new enterprise with online cash contributions.
Global investors have been attracted to the youthful entrepreneurship that characterises Africa’s business sector. For years, globalisation and the perpetuation of companies established during the colonial era have dominated African economies. However, nowadays, crowdfunding and venture capitalism have allowed Africans themselves to enter the African corporate space and marketplace. No one knows African markets better than the entrepreneurs who grew up within them. Consequently, African startup companies are found in all fields, from agriculture to consumer products, and particularly in new fields that fascinate young entrepreneurs like telecommunications and fintech.
Some African startups have become so successful that they have achieved ‘unicorn’ status – a designation given to a company that has grown to US$ 1 billion in value – a success that until the 21st century was as mythical an achievement as a unicorn. There is no timeframe for a company to achieve unicorn status, although most companies that reach this height do so by their sixth year of operation. To illustrate how rare this accomplishment is, 80% of start-ups fail within five years of their business launch.
Africa’s five top startups in terms of company value are diverse, filling and in some instances creating economic services in a variety of fields. All five are unicorns and are distinctive performers who have garnered global attention and respect.

1. Flutterwave
Founded: 2016
Market valuation: US$3 billion
Total equity funding: US$474 million
Begun by a trio of Nigerians operating jointly from offices in San Francisco and Lagos, Flutterwave offers an app that allows African businesses to make and receive payments from anywhere in Africa or around the world. Economists praised the company for facilitating Africans in building global businesses by easing the once burdensome task of financial transacting and management. According to the company, “The butterfly effect refers to a situation where a small change in one state has an impact on a bigger change in the future. For example, the flapping of a butterfly’s wings in one location, eventually leading to a tornado in another. We got our name ‘Flutterwave’ from this understanding.”
2. Opay
Founded: 2018
Market valuation: US$2 billion
Total equity funding: US$570 million
Created by Chinese billionaire Yahui Zhou, Opay has given access to millions of Africans to banking services. By using their phone app, users can use the financial service platform to make payments and money transfers. Customers may open savings accounts, as well as obtain loans and other services. In Nigeria’s competitive payment industry, Opay has become a leader through both product offerings and customer service. That the app has been downloaded 30 million times is one reason that the company has been evaluated by some financial experts as being worth closer to US$ 3 billion.
3. Andela
Founded: 2014
Market valuation: US$2 billion
Total equity funding: US$381 million
An American-West African creation by US and Nigerian entrepreneurs, the Andela job placement network was designed to enable software developers from Africa and other emerging markets to introduce themselves and enter into business arrangements and employment with clients and companies throughout the world. The result has been a revolution, whereby talented Africans in all fields, not just software development, can reach out to the world and become known. The network has contributed significantly to bridging the tech skills gap between Africa and the rest of the world. The company is one of the first and most influential African enterprises to be of valuable service to users outside of Africa, enabling individuals and organisations to find new opportunities.
4. Wave Mobile
Founded: 2018
Market valuation: US$1.7 billion
Total equity funding: US$302 million
Another American-West African firm, Wave Mobile, which is based in Senegal, is a mobile money provider that attracts customers by offering low fees on accounts. Users make deposits and withdraws, pay bills and transfer money through the virtual bank. As the platform has become one of Africa’s leading mobile money systems, its services have expanded to money lending. Praised for the app’s ease of use, Wave Mobile is one of West Africa’s most affordable and popular mobile money platforms.
5. MNT-Halan
Founded: 2017
Market valuation: US$ 1 billion
Total equity funding: US$ 470 million
The only Egyptian start-up to earn Unicorn status, MNT-Halan has become the largest and fastest growing money lender to millions of its users who have never been inside a conventional bank. The digital banking service has transitioned lower-income businesses and individuals into the digital age, substituting cash transactions with online payments and facilitating economic growth wherever the service is used through microfinancing. Investors have shown keen interest in the company’s ability to usher new generations into financial services and business activity, and the company is expanding globally.