African Startups Surpass $1 Billion in Venture Capital Funding in 2024
According to a reliable source, Africa the Big Deal, African startups have finally crossed the $1 billion mark in venture capital funding in 2024. This milestone was previously achieved earlier in the year, specifically in May 2023 and February 2022.
July has been marked by a positive dynamic, driven by two significant investments. The first is the $176 million securitization scheme of Kenyan clean energy company d.light, facilitated by African Frontier Capital, a social impact asset manager. This operation, conducted in multiple currencies, will enable approximately 6 million people in Kenya, Uganda, and Tanzania to access reliable renewable energy over the next three years.
The second investment is a $157.5 million fundraising by MNT-Halan, with a $40 million contribution from the International Finance Corporation. This investment is expected to enable the Egyptian unicorn to pursue its geographic expansion.
These figures make July 2024 the most fruitful month for fundraising in Africa in over a year.
This development occurs in a context of financial winter, which has seen a significant reduction in venture capital investments on the continent since the end of 2022. The trend has continued to worsen, gradually intensifying throughout 2023 and into 2024. African tech startups have only managed to raise $780 million in the first half of 2024, a 57% year-over-year decline.
In fact, the funding of African tech startups between January and June 2024 was the lowest recorded for such a period since 2020. As a result, entrepreneurs are very optimistic about recent developments and are looking forward to better days ahead.
