African startups raised $2.01 billion across 182 deals in 2024, marking a 30.7% drop from the $2.9 billion raised in 2023. The number of deals also fell by 30.8%, from 263 in 2023 to 182 in 2024. Funding activity was heavily weighted toward 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 emerged as the standout month, bringing in $478 million, while December followed with $294.6 million. Equity financing led with $1.12 billion, debt funding contributed $712.9 million, and mixed equity-debt arrangements added $168.1 million.
This resurgence in the second half of the year hints at renewed investor confidence. Kenya dominated the funding landscape, securing $418.9 million—20.8% of the total. This put Kenya ahead of South Africa ($352.78 million) and Nigeria ($331.52 million).
Egypt raised $290.29 million, and Uganda pulled in $228 million, driven by significant investments in CleanTech and mobility. After being briefly overtaken by mobility in the first half, fintech reclaimed its top spot, raising $882.43 million—43.9% of the total funding.
African startup funding trends in 2024
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%), and emerging sectors like AI ($10.6 million) and Edtech ($22.35 million) saw modest funding, signaling future growth potential. The rise in Mobility and CleanTech funding underscores a growing focus on addressing urbanization and sustainability challenges.
Debt financing played a significant role, 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.
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 stabilization 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 returns, fostering cautious optimism for the road ahead.
