Nigerian Startups Flock to U.S. Incorporation, Says Consul General – 80% Opt for American Base

The Consul General of the United States in Nigeria, Will Stevens, has revealed that a significant portion of Nigerian startups, amounting to 80%, are incorporated in the U.S. He underscored the pivotal role played by Nigeria in Africa’s digital landscape during the Global Tech Africa Conference in Lagos.

Stevens expanded on the continental impact, stating that 60% of African startups, on average, are incorporated in the U.S. This trend contributes to the rising venture capital investments witnessed across the continent’s startup ecosystem.

Emphasizing the influential role of the U.S. private sector in advancing technology across various sectors in Africa, Stevens noted that U.S. venture capital firms are heavily investing in African tech startups. In particular, he highlighted that over 60% and 40% of venture capital funding in Nigeria and Africa, respectively, originates from the United States.

In terms of incorporation and funding, the Consul General provided insightful statistics, stating, “Up to 60% of African startups are incorporated in the United States – this figure is 80% when considering Nigeria alone. In 2021, African startups raised $4.8 billion, translating to an average of over $1 million every 2 hours!” Stevens highlighted the substantial contribution of the United States to Africa’s VC funding, accounting for over 40% in 2022, with more than $2 billion injected into local startups.

Addressing the ongoing commitment to fostering technology development in Africa, Stevens reiterated that the U.S. government is leveraging cutting-edge technological innovations to tackle pressing challenges in education, healthcare, agriculture, and other crucial areas of development and economic growth.

Specifically, Stevens mentioned collaborative efforts with Nigerian partners to develop electronic health records systems, train healthcare workers in leveraging technology for care delivery, and provide access to affordable medicines and vaccines for Nigerians. He commended Nigerian health technology companies like Healthbotics and Helium Health for utilizing U.S. programs and access to foster ingenious technologies, improving healthcare for underserved communities in Nigeria.

Highlighting the depth of U.S. support, Stevens stated, “The United States remains the largest single donor of bilateral aid to health in Nigeria, providing funding for primary healthcare programs, water and sanitation activities, infection prevention and control, malaria, HIV/AIDS, and general health assistance totaling over $15 billion in the last 20 years.”

Stevens concluded by affirming the United States’ belief in the ongoing digital transformation in Africa and expressed the conscious effort to strengthen collaboration with entities involved in the digital space. The Consulate in Lagos actively engages with numerous startups, facilitating their participation in incubator and accelerator programs to connect Nigerian startups with global markets, particularly emphasizing the significance of Nigeria as a key market in this context.