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.
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.
The share of funding heading into the “big four” countries of Nigeria, Egypt, Kenya and South Africa had leapt to 90.4 per cent in 2023, as the economic headwinds started to blow, compared to an 80.8 per cent share in 2022, and fell only marginally in 2024, to 88.8 per cent.
Nigeria returned to its usual position as the best-funded country in African tech, having relinquished the spot to Kenya in a disappointing 2023. A total of US$331,635,000, 29.6 per cent of the overall total, was raised, narrowly pipping Egypt to top spot. This figure was secured by 39 startups – 19.5 per cent of the African total, ranking Nigeria second behind Egypt in this regard.
Both of these figures nonetheless represent a significant decline on 2023, with the number of funded ventures falling by 68.5 per cent from 124, and total funding down 17.1 per cent from US$399,909,000. The average raise is up, however, to US$8,503,462 per startup from US$3,225,072 in 2023.
Egypt was another country for which 2024 was an extremely tough year, but like Nigeria it has proven some durability in 2024 even as difficult economic conditions meant VC funding was extremely sparse.
It was the only country to report an increase in the number of funded tech startups, up to 51 – 25.5 per cent of the African total – from 46 in 2023. This was the most of any ecosystem on the continent. Total funding, however, declined again, by 47.1 per cent to US$312,100,000. This nonetheless made up 27.9 per cent of total African startup funding, and was second only to Nigeria.
It was a tough year for Kenyan tech startups from a funding perspective, with significant drops in both the number of startups that secured investment, and the total they secured.
Twenty-eight startups (14 per cent of the African total) secured investment, the third highest figure but one that fell by 54.8 per cent from 62 startups in 2023, when it had the second most after Nigeria. It is the second consecutive year of decline in that regard, with 2023’s tally having been down 31.9 per cent on 2022.
It was a year of damaging decline for the South African startup ecosystem from a funding perspective, which fell to fourth for both number of ventures backed and total investment secured.
Just 25 South African startups raised funding over the course of 2024, representing a mere 12.5 per cent of the total. This was down by 58.3 per cent from 60 startups in 2023, which had in turn been down 23.1 per cent from 78 in 2022. Indeed, the number of funded startups in South Africa has been declining since 2021, at a quickening pace.
The same decline is evident with total funding, which collapsed to US$100,440,000 – just nine per cent of the African total – from US$512,316,000 in 2023, when South Africa accounted for more than 20 per cent of investment. These disappointing numbers stand in stark contrast to 2023, when South Africa has bucked trends and reported 55.4 per cent growth in funding.
Fifty-seven startups from 13 additional African countries secured investor backing in 2024.
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.
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