Total Investments in African Tech Startups Plummet by Over 50% in 2024
Total investments in the African tech startup ecosystem have experienced a spectacular decline of over 50% in 2024, reaching $1.1 billion. This drop is attributed to the persistent effects of the global capital shortage on the continent.
According to the 10th annual report on African tech startup funding, published by Disrupt Africa as part of an open-sourcing initiative in partnership with Art of Scale, 200 startups raised a combined total of $1.1 billion during the year. This represents a significant decrease compared to 2023, where 406 startups raised $2.4 billion. This marks the second consecutive year of decline, reflecting the sector's difficulties in the face of the global capital shortage.
The number of active investors also decreased by 35%, while merger and acquisition activity experienced a notable decline.
Although the four leading tech countries in Africa - Nigeria, Egypt, Kenya, and South Africa - raised fewer funds than in 2023, they maintained their global share of funding. In fact, investors continued to focus on perceived lower-risk markets during this period of global capital shortage.
Fintech once again dominated the investment landscape in African tech startups in 2024, although it experienced a second consecutive year of decline, with a more pronounced drop than in previous years.
