CHART: Startups in Africa Raised $2.2 Billion in 2024 as Kenya Takes the Lead
One of the key trends in 2024 was the rise of climate tech, particularly in East Africa.
Highlights:
- Kenya led the continent’s funding with $638 million, followed closely by Nigeria.
- Two unicorns emerged: Moniepoint in Nigeria and Tyme Group in South Africa.
- Investors increasingly prioritized long-term, impact-driven solutions.
After two years of record highs, Africa’s startup ecosystem faced a slowdown in 2024, raising $2.2 billion in total funding, per data from Africa: The Big Deal. That’s a 25% drop from 2023, when startups secured $2.9 billion, marking the continent’s first decline in years.
The year started slow, with under $800 million raised in the first half—the weakest half-year since 2020. But the second half saw a strong rebound, bringing in $1.4 billion, or nearly two-thirds of the year’s total funding, marking an 80% increase from H1.
Interestingly, Kenya led the continent’s funding for the second consecutive year, attracting $638 million—29% of Africa’s total. This was driven by large climate tech deals from companies like d.light ($176 million), SunCulture ($27.5 million), and Basigo ($42 million), reflecting growing investor interest in sustainable solutions.
Kenya's performance helped to drive the East Africa region to an overall funding of $725 million, accounting for one-third of all startup funding on the continent. Other countries in the region contributed smaller amounts, such as Tanzania ($53 million) and Uganda ($19 million), but Kenya was by far the dominant player.
In contrast, West Africa secured $587 million, with Nigeria raising just over $400 million, buoyed by Moniepoint's $110 million raise, one of Africa’s two new unicorns in 2024. This helped stabilize the region’s numbers, even as other countries like Ghana, Benin, and Côte d'Ivoire saw smaller contributions.
The other unicorn came from South Africa’s Tyme Group, a digital banking platform that hit a $1 billion valuation in Q4, thanks to a $250 million funding deal. These major deals contributed to a late-year recovery in what had been a challenging funding environment.
Northern Africa also saw a significant decline, with funding falling by 35% to $478 million, driven largely by a 37% drop in Egypt. Southern Africa, on the other hand, experienced a similar downturn, raising $397 million—a 36% year-over-year decline—while Central Africa recorded just $5 million, marking a tenfold drop from 2023.
Kelechi Edeh
One of the key trends in 2024 was the rise of climate tech, particularly in East Africa. Investors increasingly prioritized long-term, impact-driven solutions in areas like renewable energy and sustainable mobility. This shift marked a break from the traditional dominance of fintech, which saw its influence wane throughout the year.
Overall, the funding drop can be attributed largely to a 40% decline in debt financing, which had spiked in 2023, dubbed 'The Year of Debt." Equity funding, however, stabilized, falling by just 11%, suggesting that investor confidence is returning after the global funding slowdown. The emergence of two new unicorns and the rise of climate tech point to a more resilient ecosystem moving forward.
Also, Kenya’s rise again as Africa’s top funding destination underscores this shift in investor priorities. The challenge ahead will be ensuring that investment opportunities extend beyond the usual hotspots, as the focus moves from fintech to sectors addressing real-world problems. For many African startups, staying connected to the global funding landscape will be key to navigating the changing tide.
