Total investment into the African tech startup ecosystem fell by more than 50 per cent to US$1.1 billion in 2024 as the impacts of the global capital shortage continued to make themselves felt on the continent.
This is according to the 10th edition of the annual African Tech Startups Funding Report released by startup news and research portal Disrupt Africa, which is available free to all as part of an open-sourcing initiative in partnership with Art of Scale.
A total of 200 startups raised a combined total of US$1.1 billion over the course of the year, down by more than 100 per cent on 406 startups and over 50 per cent on US$2.4 billion in 2023. This is the second consecutive year of decline as the sector feels the effects of the global capital shortage.
The number of active investors fell again, buy 35 per cent, while M&A activity also witnessed a significant decline.
Though each of the so-called “big four” of African tech – Nigeria, Egypt, Kenya and South Africa – raised significantly less funding than in 2023, they retained their overall share of funding, as capital remained focused on markets perceived as being less risky during the global capital shortage.
Fintech once again proved by far and away the most popular sector for investors in African tech startups in 2024, yet it saw a second successive year of decline, and indeed declined at a greater rate.
The report is available for free download here. Aside from providing a full list of the funded startups, who invested in them, and, where possible, the amount raised, from the previous year, the annual reports also provide deep-dives into investment trends within key startup geographies and verticals, as well as data on African startup acquisitions.
“2024 was a very difficult year indeed for African tech from a funding perspective, with a significant decline in investment for the second year in a row. Many startups out there are struggling, but this is not a phenomenon unique to Africa, and indeed we are not seeing the same levels of decline as witnessed elsewhere in the world. And with Q4 2024 and Q1 2025 numbers on the up, we can at least hope that the end of the crisis is near,” said Disrupt Africa co-founder Gabriella Mulligan.
“Art Of Scale is proud to champion Africa’s dynamic entrepreneurs and innovative job creators through our strategic partnership with Disrupt Africa. This collaboration represents our commitment to fostering sustainable economic growth across the continent by empowering the next generation of business leaders,” said Jason Goldberg, Co-founder of Art of Scale.
For more information, or to download the report, please visit disruptafrica.com/funding-report, or email Gabriella on gabriella@disruptafrica.com, or Tom on tom@disruptafrica.com.
About Disrupt Africa
Disrupt Africa is the one-stop-shop for all news, information and commentary pertaining to the continent’s tech startup – and investment – ecosystem. With journalists roaming the continent to find, meet, and interview the most innovative and disruptive tech startups, Disrupt Africa is a true showcase of Africa’s most promising businesses and business ideas. Its research arm releases in-depth reports on various aspects of the African tech startup ecosystem. Details here.
About Art of Scale
Art of Scale is your trusted partner in scaling success, providing founders and CEOs with an innovative self-service platform and bespoke support services to help you grow your business with confidence. Whether you’re looking for tools to master the craft of scaling or need hands-on help to overcome hard-to-solve challenges, Art of Scale provides the guidance, resources, and expertise you need to build unstoppable growth momentum.
