In 2024, Kenya was the leading destination for startup funding in Africa, having attracted $638 million in funding as revealed by Africa: The Big Deal.
This took up 29% of the total raised across Africa and topped the regional figures for East Africa, which as a whole, secured $725 million in funding, equivalent to one-third of Africa’s total startup investments.
Being the second consecutive year the region maintained its top spot, even though there was an 18% year-over-year decline, Kenya received investments in sectors such as climate tech, including companies like d.light, SunCulture, and Basigo.
Meanwhile, Tanzania and Uganda contributed $53 million and $19 million, respectively, making smaller but notable contributions to the region’s performance.
West Africa’s Recovery and Nigeria’s Steadfast Performance
West Africa ranked second in 2024, recording $587 million in funding—27% of the continent’s total. Nigeria led the region with over $400 million raised, maintaining parity with its 2023 performance and placing it among Africa’s top three startup markets.
Major deals included Moove’s $110 million and Moniepoint’s $110 million, which helped boost the country’s startup sector despite economic challenges.
What further supported West Africa’s growth was its balanced contributions from other nations. Ghana raised $68 million, Benin $50 million, Côte d’Ivoire $33 million, and Senegal $22 million.
This diversity strengthened the region’s place and mitigated the minor 3% decline in funding compared to the previous year.
North and Southern Africa Funding Declines
Northern and Southern Africa experienced funding contractions in 2024. North Africa raised $478 million, a 35% drop compared to 2023, primarily due to a 37% decline in Egypt, which accounted for 84% of the region’s funding. Morocco held steady with $70 million, but it was insufficient to offset Egypt’s steep decline.
In Southern Africa, funding fell by 36%, amounting to $397 million. South Africa, which accounted for 99.4% of the region’s funding, experienced a 34% drop.
The region’s heavy reliance on South Africa continued to emphasize the limited contributions from neighbouring countries, further revealing its challenges in diversifying funding sources.
Central Africa Struggles to Gain Traction
Central Africa remained the least funded region, raising only $5 million in 2024—a sharp decline from its already low 2023 figures. The negligible contribution pointed to the region’s limited role in Africa’s startup industry.
Africa’s Big Four
Kenya, Nigeria, Egypt, and South Africa collectively accounted for 84% of all startup funding in Africa in 2024, maintaining a trend that started since 2019. These nations remain key in bolstering the continent’s investment sector.
