African startups raised a total of $2.01 billion across 182 deals in 2024. This marks a 30.7% decline from the $2.9 billion raised in 2023. The number of deals also dropped by 30.8%, decreasing from 263 in 2023 to 182 in 2024.
Funding in 2024 was mainly concentrated in the second half of the year. The latter half accounted for $1.3 billion, more than double the $661 million raised in the first half. July was particularly notable, bringing in $478 million, while December followed with $294.6 million.
Equity financing led the way with $1.12 billion. Debt funding came in at $712.9 million. Mixed equity-debt arrangements contributed $168.1 million.
This resurgence in the second half signals renewed investor confidence. Kenya emerged as the leading country in terms of startup funding in 2024. It secured $418.9 million, or 20.8% of the total.
This performance was bolstered by a strong first half, where it raised $194.3 million. Kenya outpaced South Africa ($352.78 million) and Nigeria ($331.52 million). Egypt also remained a significant player, raising $290.29 million.
Uganda garnered $228 million, driven largely by investments in CleanTech and mobility sectors.
African startups show resilience in 2024
After being briefly overtaken by mobility startups in the first half of the year, fintech reclaimed its top spot.
It raised $882.43 million, accounting for 43.9% of the total funding. The mobility sector followed with $300.42 million, or 14.9%. CleanTech secured $294.8 million, making up 14.6% of the total.
The telecom sector also made a notable showing with $225 million. Emerging sectors like AI and Edtech saw modest funding of $10.6 million and $22.35 million, respectively. This indicates potential growth in the future.
Debt financing continued to play a significant role in 2024. It accounted for $712.89 million, or 35.5% of the total funding. Mixed equity and debt rounds added another $168.1 million.
Noteworthy debt deals included Spiro’s $50 million and M-Kopa’s $51 million. Despite a global slowdown in venture capital, Africa’s startup ecosystem showed remarkable resilience in 2024. Although overall funding levels and deal volumes decreased compared to 2023, a strong second half indicated a potential stabilisation and renewal of investor confidence.
Investor interest is diversifying beyond fintech, with sectors like CleanTech and mobility gaining traction. This shift underscores a growing focus on urbanisation and sustainability challenges. With emerging sectors gaining momentum and investors’ confidence gradually returning, there is cautious optimism for continued growth and innovation in Africa’s startup ecosystem.