Private funding in African startups declined by 25% in 2024, reaching a total of $2.2 billion, compared to $3 billion raised in 2023. This drop reflects the growing challenges faced by startups across the continent in accessing capital—particularly in emerging regions and sectors.
Despite this contraction, Kenya, along with Nigeria, Egypt, and South Africa (known as The Big Four), continues to dominate the entrepreneurial landscape, drawing 84% of all startup investment across the continent. East Africasecured $725 million in total funding, a year-on-year decrease of 18%. Kenya remained the most attractive market, receiving $638 million, representing 29% of the continent’s total, largely driven by major deals in the climate tech sector (notable companies include d.light, SunCulture, and BasiGo). Other countries in the region, such as Tanzania ($53 million) and Uganda ($19 million), recorded much more modest figures.
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In West Africa, total funding reached $587 million, a relatively slight 3% decrease compared to the previous year. Nigeria, with over $400 million, continues to lead the region, maintaining levels similar to those seen in 2023. Other noteworthy countries include Ghana ($68 million), Benin ($50 million), and Senegal ($22 million).
In North Africa, funding dropped by 35%, amounting to $478 million. Egypt accounted for 84% of the regional total but suffered a 37% year-on-year contraction. Morocco, on the other hand, showed greater resilience, attracting $70 million in funding.
In Southern Africa, startups raised $397 million, representing a 36% decline from 2023. South Africa alone attracted 99.4% of the region’s total, although it also experienced a 34% year-on-year fall.
Finally, Central Africa recorded just $5 million in total funding—more than a tenfold decrease compared to 2023.
