In 2024, African startups raised $2.01 billion across 182 deals, according to data from our Funding Tracker. This reflects a 30.7% drop in funding compared to the $2.9 billion raised in 2023. Similarly, the number of deals fell by 30.8%, from 263 in 2023 to 182 in 2024.
A tale of two halves
Funding activity in 2024 was heavily weighted toward the year’s second half. H2 accounted for $1.3 billion, more than double the $661 million raised in H1. July emerged as the standout month, bringing in $478 million, while December followed with $294.6 million.
Further breakdown: Equity financing led with $1.12 billion, debt funding contributed $712.9 million, and mixed equity-debt arrangements added $168.1 million. This H2 resurgence hints at renewed investor confidence.
Kenya tops the charts
Kenya dominated the funding landscape in 2024, securing $418.9 million—20.8% of the total, building on its strong H1 performance of $194.3 million. This put Kenya ahead of South Africa ($352.78 million) and Nigeria ($331.52 million). Egypt remained a strong contender, raising $290.29 million, while Uganda also shared in the spotlight by pulling in $228 million, driven by significant investments in CleanTech and mobility.
Fintech holds its crown
After being briefly overtaken by mobility in H1, Fintech reclaimed its top spot, raising $882.43 million—43.9% of the total funding. Mobility followed with $300.42 million (14.9%), while CleanTech secured $294.8 million (14.6%). Telco also made a notable showing with $225 million (11.2%).
Emerging sectors like AI ($10.6 million) and Edtech ($22.35 million) saw modest funding, signalling future growth potential.
While fintech remains dominant, its share of total funding declined from 50% in 2023, highlighting increased diversification in investor interests. The rise of Mobility and CleanTech funding underscores a growing focus on addressing urbanisation and sustainability challenges.
Debt financing continues to gain momentum
Just like in 2023, debt financing played a significant role in 2024, accounting for $712.89 million—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, both of which significantly contributed to the total overall debt funding.
A year of resilience and adaptation
Despite a global slowdown in venture capital, Africa’s startup ecosystem proved its resilience in 2024. While funding levels and deal volumes dipped compared to 2023, a strong second half marked a turning point, hinting at stabilisation and renewed investor confidence.
Investor interest is expanding beyond fintech, with sectors like Cleantech and mobility stepping into the spotlight. This shift reflects a growing awareness of Africa’s potential to lead in sustainability and innovative solutions for its unique challenges.
With emerging sectors gaining momentum, innovation continues to thrive, and investors’ confidence gradually returning, there’s cautious optimism for the road ahead.
