Top 10 African startups to watch as local investment takes over

African startups are increasingly attracting attention as local investors step in to fill funding gaps left by a slowdown in foreign venture capital. In recent times, rising insecurity and harsh economic conditions have caused a decline in global investment across various African countries.

• Rising insecurity and tough economic conditions have reduced global investment in many African countries, but local startups are stepping in to address infrastructure gaps.
• Twenty-five privately owned African startups are leveraging local resources and funding to solve problems in sectors like healthcare, security, finance, and logistics.
• Notable examples include Terra Industries in Nigeria building security drones, Black Swan in Tanzania providing alternative credit scores, and 10mg Health in Nigeria financing clinics.
• Other standout companies like Remedial Health, Hub2, and WorkPay are fixing issues in medicine supply, digital payments, and payroll management, respectively.

To counteract the impact of these declines, notable local startups are rising to the challenge and creating practical solutions for endemic infrastructure gaps, such as weak healthcare systems, security issues, and a lack of traditional banks.

By harnessing the continent's widely available human resources and combining them with local funding, these 25 companies are tackling real-world problems and creating lasting solutions across several African countries.

Every business highlighted here is privately owned and steps in where public infrastructure falls short.

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Here is a look at 10 standout innovators from Bloomberg’s 25 Startups to Watch in Africa (2026):

1. Terra Industries (Nigeria)

To help combat rising security issues across West Africa, this private defense tech company builds specialized drones and surveillance systems.

Terra Industries recently raised $34 million from private investors to expand its manufacturing out of Nigeria and into Ghana.

This expansion into other West African countries is a timely development. In the latest Global Terrorism Index ranking, Nigeria sits within the top five most impacted countries alongside three of its neighbors: Burkina Faso, Niger, and Mali.

2. Black Swan (Tanzania)

Many small business owners in Tanzania operate entirely in cash or mobile money, leaving them without the official bank records and credit scores required to get traditional bank loans.

Black Swan fixes this problem with its AI software, Manka, which looks at everyday data—like phone bill histories and mobile money transactions—to build an alternative financial profile.

By turning these daily habits into a reliable credit score, the platform allows local banks to safely approve small business and equipment loans in just a few minutes instead of making owners wait weeks for paperwork.

3. 10mg Health (Nigeria)

When hospitals run out of cash, patient care gets delayed.

This private healthcare finance company uses data to check the financial health of clinics and pharmacies, quickly matching them with local lenders to provide the cash flow they need to stay stocked and open.

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4. Hub2 (Ivory Coast)

Sending money across borders in French-speaking West Africa is notoriously difficult.

This private digital payments company solves the problem by linking different mobile money wallets and bank accounts together through a single software system, making regional B2B payments seamless.

5. Remedial Health (Nigeria)

Counterfeit medicine is a major safety hazard, contributing to an estimated 500,000 deaths annually in sub-Saharan Africa according to the United Nations Office on Drugs and Crime (UNODC).

This private healthcare supply chain startup provides an online storefront where over 14,000 pharmacies can buy verified, authentic medications in bulk and access fair, flexible payment terms to keep their shelves safely stocked.

6. Omnisient (South Africa)

This private financial inclusion company helps banks analyze everyday consumer habits to build credit profiles for people without bank accounts. So far, they have helped over 3 million South Africans safely enter the formal financial system.

7. Sycamore (Nigeria)

This private business lending platform offers fast, digital loans to small businesses that are usually ignored by large, traditional banks. They are currently expanding their services to include financial products for the African diaspora living in the UK.

8. Nkwa (Cameroon)

Built for cash-reliant economies, Nkwa is a private micro-savings mobile app that helps people in the informal workforce easily save money and reach financial goals through simple, secure digital piggy banks.

9. PawaPay (Pan-African)

Africa has dozens of different mobile money companies, which complicates things for international businesses. This private mobile money network bundles all these different phone-based financial networks into one single payment gateway.

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10. WorkPay (Kenya)

Managing employees across different countries means dealing with different tax laws. This private HR and payroll company offers a cloud platform that automates human resources, tax compliance, and salary payments directly to employee phone wallets.

15 More African Startups Fixing Everyday Problems

The other 15 companies on Bloomberg's list are also privately owned and just as focused on solving survival-level problems across 13 countries.

In Kenya, logistics platforms like Leta, BuuPass, and Oye are organizing the region's messy transport and retail delivery networks. In Ghana, FreezeLink uses solar energy to keep food and medicine from spoiling, while Revna Biosciences runs advanced labs to improve local cancer testing.

The remaining startups span regions like North Africa, Botswana, Madagascar, Mauritius, Chad, and Somalia. These private businesses are replacing outdated infrastructure with digital IDs, clean energy grids, automated shipping tools, and remote healthcare tech.

Victor Awogbemila