Africa’s tech story is no longer an emerging narrative, but a fast-moving reality. From mobile payments to healthtech, digital agriculture to AI pilots, the continent is home to some of the most creative and adaptive tech solutions in the world.
While opportunities are abundant, not every African market delivers the same return on investment (ROI) for startups.
Choosing where to launch is about balancing growth potential with operational feasibility, regulatory predictability, and long-term scalability.
At Velex Advisory, we’ve spent over 10 years helping investors identify, enter, and thrive in Africa’s most promising markets. Here’s our take on which countries currently offer the best ROI for tech startups and why.
1. Kenya
Kenya has cemented its reputation as one of Africa’s most dynamic startup ecosystems, and the numbers show why. In 2024, startups in the country raised more than $638 million in combined funding, led by sectors such as fintech and climate tech.
A significant share of this capital flowed into well-known players like M-KOPA, which secured over $250 million in fresh equity and debt to expand its smartphone financing and digital credit business across East Africa. The pipeline for 2025 looks equally strong, with investors continuing to show confidence in Kenya as both a testing ground and a scaling base for innovative ventures.
Part of that confidence comes from the country’s deliberate ecosystem building. Institutions like the Kenya National Innovation Agency (KeNIA) and the development of Konza Technopolis, a Special Economic Zone designed to attract digital firms and research institutions, send a clear message that the government views technology as a driver of national growth.
Coupled with an active private sector, Nairobi has become a natural convening point for accelerators, venture funds, and corporate partners. StartupBlink’s global rankings placed Kenya 58th in 2025, reflecting an annual ecosystem growth rate of more than 30 percent, a figure that only strengthens the case for ROI-focused investors.
Integration and scalability are also easier here than in many other markets. M-Pesa’s developer APIs, PesaLink’s instant banking rails, and widespread adoption of mobile payments give startups plug-and-play access to millions of digital consumers.
As a member of the East African Community (EAC), Kenya provides a gateway to neighbouring markets such as Uganda, Tanzania, and Rwanda, multiplying the potential ROI for scalable solutions.
For fintechs, SaaS providers, and digital platforms that rely on frictionless transactions, Kenya’s infrastructure and policy environment make it one of the safest bets for both quick market entry and sustainable growth.
2. Nigeria
Nigeria offers a very different but equally compelling ROI story, driven above all by scale. With over 220 million people and a median age under 19, the country is the continent’s largest consumer market. In 2024, Nigerian startups raised around $520 million, with fintechs dominating the charts and companies like Moniepoint pushing into unicorn territory.
However, with scale comes significant challenges. Regulatory changes are frequent, compliance timelines are often lengthy, and execution in such a large and fragmented market is never straightforward.
According to Vadim Mildov, Executive Chairman at Velex Group, investor confidence in Nigeria remains strong because scale and demand are undeniable, but success depends on pairing that opportunity with discipline and structure. For startups entering Nigeria, ambition alone is not enough; expansion requires careful structuring and constant adaptation to shifting policies.
The Nigeria Startup Act has helped address some of these challenges by creating a formal framework for recognising and supporting innovative companies, including tax incentives and a national “Startup Label.”
Lagos has also reinforced its role as a regional hub through initiatives like LASRIC grants, while Special Economic Zones such as Lekki provide tax holidays and repatriation privileges for foreign investors. Combined with robust payment infrastructure through the Nigeria Inter-Bank Settlement System (NIBSS) and numerous fintechs, Nigeria remains a market where execution is difficult but where the rewards are unmatched for those prepared to handle its complexities.
3. South Africa
South Africa offers one of the continent’s most stable and infrastructure-rich environments for technology companies, making it an attractive option for startups seeking long-term ROI. In 2024, startups raised more than $450 million, with TymeBank’s $250 million Series D round, led by Nubank, marking a high point for the ecosystem and propelling the company further into unicorn status.
Unlike markets where growth is driven by raw consumer demand, South Africa’s advantage lies in its depth. The country boasts reliable broadband, efficient logistics, advanced banking systems, and a large corporate sector that drives demand for B2B SaaS, enterprise solutions, and high-value e-commerce.
National support structures like InvestSA and a series of Special Economic Zones add further investor incentives, while the launch of PayShap, a national real-time payments system, signals continued digital transformation at a systemic level.
South Africa also ranked 52nd globally on StartupBlink’s 2025 report, the highest in Africa, reflecting both the strength and consistency of its ecosystem.
For startups, the integration advantage is clear. Payment gateways like Peach Payments and other local PSPs make it easy to serve both SMEs and larger corporates, while PayShap is laying the groundwork for widespread adoption of instant, account-to-account transactions. Combined with a deep pool of technical talent, these elements give founders the tools to build businesses that can scale across multiple verticals, from SaaS to e-commerce to fintech.
4. Rwanda
Rwanda may not compete with Africa’s giants on absolute funding volume, but it has carved out a reputation as one of the most innovation-friendly environments on the continent. The government has been deliberate in positioning Kigali as a hub for frontier technologies, with the Rwanda Development Board and Kigali Innovation City at the center of this strategy.
Startups benefit from clear incorporation processes, policy support, and a willingness by regulators to experiment with sandboxes in areas such as fintech. While funding totals remain modest compared to Kenya or Nigeria, Rwanda’s consistency in policy execution has made it an attractive launchpad for pilots that can later scale across the East African Community.
Digital infrastructure and adoption levels also work in its favour. Mobile money penetration is high, with platforms like Airtel and MTN offering open APIs that allow developers to integrate payment and disbursement services with ease. This ecosystem has enabled both homegrown and international startups to test products quickly and refine them for broader markets. The country’s embrace of digital government services, from tax filing to citizen platforms like Irembo, has further primed consumers and institutions to adopt tech-driven solutions.
One of Rwanda’s standout success stories is Zipline, the drone delivery company that first launched in the country back in 2016. Today, Zipline covers most of Rwanda’s blood deliveries outside of Kigali, reducing wastage by nearly 70 percent and setting a global standard for how technology can be scaled to meet pressing human needs. That such a model could start and thrive in Rwanda is a testament to the country’s openness to innovation and its ability to create a business environment where high-risk, high-reward technologies can gain traction.
5. Egypt
Egypt has steadily emerged as one of Africa’s most attractive markets for tech startups, offering both scale and cost efficiency. Its young, digitally engaged population makes it fertile ground for consumer-facing platforms, while a strong base of engineers and software developers keeps operating costs competitive.
In 2024, Egypt’s funding landscape was dominated by MNT-Halan, the country’s flagship fintech, which secured $157.5 million in fresh capital after already crossing the billion-dollar valuation mark the year before. That deal highlighted the country’s ability to produce late-stage winners capable of competing on regional and global levels.
The Egyptian government has also played an active role in building out its startup ecosystem. Agencies like ITIDA and TIEC provide incubation support, grants, and resources, including programs that offer startups hundreds of thousands of Egyptian pounds in direct funding and in-kind benefits such as cloud credits.
This state involvement has created a steady pipeline of early-stage ventures, many of which graduate into the vibrant VC ecosystem centered in Cairo. The country’s geographic position as a bridge between Africa and the Middle East adds further strategic value, making it a base not just for serving Egypt’s 100 million-plus consumers, but also for reaching neighbouring Gulf markets.
On the infrastructure side, Egypt has invested heavily in digital payments, with the Central Bank’s Instant Payment Network (IPN) enabling 24/7 real-time transfers through apps like InstaPay. Local players such as Paymob have also built robust APIs, giving startups seamless access to card payments, mobile wallets, and alternative methods. This interoperability reduces friction for entrepreneurs and improves adoption rates among consumers.
Why Velex Advisory is the Right Partner to Help You Maximize ROI
High ROI potential doesn’t mean risk-free. Overestimating market readiness, underestimating localisation needs (such as language or payment preferences), or ignoring regulatory changes can erode profits quickly. Compliance delays can push back launches by months, and currency fluctuations can hit revenue forecasts hard.
The startups that succeed in Africa’s high-ROI markets are the ones that do deep due diligence, adapt quickly to local realities, and have trusted in-market partners to guide execution.
Velex Advisory helps tech companies turn market potential into measurable returns by:
- •Stress-testing ROI projections with local data and regulatory insight.
- •Streamlining licensing and compliance to accelerate time-to-launch.
- •Structuring operations for scalability into neighbouring markets.
With a decade of cross-border advisory experience, we protect your margins, keep your expansion on track, and ensure your Africa strategy delivers and sustains the ROI you’re targeting.
If ROI is your goal, we’ll help you reach it and keep it.
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Sylvester Omondi is the Business Development Manager – Tech and Payments, Velex Advisory East Africa.