Egypt Overtakes Nigeria on FT Fast-Growing Firms Ranking as Naira Crisis Hits Startups
Nigeria has lost its long-standing dominance on the Financial Times’ list of Africa’s fastest-growing companies, with Egypt emerging as the new leader for the first time in four years. The latest 2026 ranking, compiled by the FT in partnership with Statista, placed Egyptian fintech company Thndr at the top of the continental list, displacing Nigerian firms that had dominated the rankings since 2023. The development highlights a growing shift in Africa’s startup ecosystem as economic instability and currency depreciation continue to weigh heavily on Nigerian businesses.
The ranking measured the compound annual growth rate of 130 African companies between 2021 and 2024. Egypt’s Thndr recorded an explosive revenue growth of 6,851.5 percent, rising from $0.12 million in 2021 to $8.02 million in 2024. The company, often described as North Africa’s version of Robinhood, has attracted over one million active users by providing investment and brokerage services to first-time investors across Egypt. Financial Times noted that the achievement marks the first time an Egyptian company has topped the prestigious continental ranking.
Although several Nigerian firms still posted impressive operational growth, the sharp devaluation of the naira significantly reduced their dollar-equivalent revenues used in the ranking calculations. Companies such as Sabi Holdings and Haul247 Technology recorded strong growth figures, but the local currency’s decline weakened their standing compared to competitors from more stable economies. Since the foreign exchange reforms introduced in 2023, the naira has lost more than two-thirds of its value, creating fresh concerns for investors and startup founders operating in Nigeria.
Investor sentiment is also beginning to shift away from Nigeria toward markets seen as more stable. Lexi Novitske, a general partner at Africa-focused growth fund Norrsken22, revealed that the company is slowing down investments in Nigeria due to concerns over policy uncertainty and exchange rate instability. Meanwhile, South Africa further strengthened its position as Africa’s leading startup hub, producing 51 companies on the list, while Kenya moved ahead of Nigeria in total representation. Analysts say South Africa’s relatively stable currency, improving infrastructure and strong talent pool continue to attract investors.
Kenya also recorded significant gains, with companies across renewable energy, retail and manufacturing making the list. However, analysts warn that geopolitical tensions and global economic uncertainty could create fresh challenges for African startups in 2026. The ongoing Middle East conflict, rising inflation and tighter funding conditions are expected to increase pressure on businesses already battling weak local currencies and slowing foreign investment flows. Despite the setbacks, experts believe Africa’s startup ecosystem remains resilient, though competition among leading innovation hubs is becoming increasingly intense.
source: Business day