Tech startups from Nigeria raised over $400 million in 2024 however that was not sufficient to displace Kenya, which overtook Nigeria by way of fundraising since 2023.
That is in response to the funding report by Africa: The Large Deal, which tracks startup funding throughout the continent.
With solely two mega offers: Moove’s $110 million together with a $100 million Sequence B spherical led by Uber, and Moniepoint’s $110 million Sequence C spherical, Nigerian startups funding for 2024 was about the identical determine of $410 million recorded in 2023.
Regional efficiency
The report confirmed that the African startup ecosystem showcased resilience in 2024, with East Africa rising because the dominant pressure for the second consecutive 12 months, regardless of a year-over-year decline in whole funding throughout the continent.
- The area retained its high place, attracting $725 million in funding, which represented 33% of the continent’s whole of $2.2 billion.
- Though this marked an 18% year-over-year decline, the area outpaced others in general funding. Kenya performed a pivotal position, accounting for $638 million or 88% of East Africa’s whole, making it the main market in Africa for startup funding in 2024.
- Kenya’s dominance was pushed by substantial investments in local weather tech startups like d.mild, SunCulture, and Basigo.
- In distinction, Tanzania ($53 million) and Uganda ($19 million) contributed smaller parts to the area’s funding whole, rating seventh and eleventh on the continent, respectively.
West Africa: A balanced comeback
West Africa climbed to the second spot, elevating $587 million, which accounted for 27% of Africa’s whole funding in 2024.
The area noticed solely a minor drop of three% year-over-year, a major enchancment after shedding its high place in 2023.
“Nigeria led the area, securing over $400 million in funding, on par with Egypt and South Africa.
“Nevertheless, West Africa demonstrated exceptional variety, with 4 international locations—Ghana ($68 million), Benin ($50 million), Côte d’Ivoire ($33 million), and Senegal ($22 million)—contributing to the area’s success,” the report said.
North and Southern Africa
North Africa noticed a pointy decline in funding, dropping 35% year-over-year to $478 million. Egypt, the area’s dominant participant, recorded a good steeper decline of 37%, representing 84% of North Africa’s whole funding.
- Morocco, nonetheless, managed to carry its floor, securing $70 million, which positioned it because the fifth-largest funding recipient on the continent. But, it wasn’t sufficient to offset Egypt’s downturn.
- Southern Africa confronted comparable challenges, with funding dropping by 36% year-over-year to $397 million. South Africa, the area’s cornerstone, noticed a 34% decline however nonetheless accounted for an awesome 99.4% of Southern Africa’s whole funding.
- This focus highlights the area’s historic reliance on South Africa, with restricted contributions from different international locations.
- Central Africa recorded the bottom funding exercise in 2024, elevating simply $5 million—greater than 10 instances decrease than its 2023 whole. The area’s contribution remained negligible, additional emphasizing the dominance of Africa’s Large 4 markets.
Extra insights
The Large 4: Kenya, Nigeria, Egypt, and South Africa continued to dominate, collectively attracting 84% of all startup funding in Africa in 2024, in keeping with tendencies since 2019.
These markets play a important position in shaping regional and continental dynamics.
The continued success of the Large 4 and the rising contributions from rising markets like Morocco, Ghana, and Benin will likely be instrumental in defining Africa’s startup trajectory in 2025 and past.
Be First to Comment