African Startup Ecosystem Sees Shift in Funding Distribution in 2024
The African startup ecosystem has undergone significant changes in the distribution of funding across its regions in 2024. However, Kenya, Nigeria, Egypt, and South Africa continue to dominate. According to the Africa The Big Deal report, these four countries have captured 84% of all startup funding on the continent.
In total, African startups have raised $2.2 billion, a 25% decrease year-over-year.
Regional Breakdown
East Africa
East Africa has attracted the largest share of capital for the second consecutive year. Startups in the region have mobilized $725 million, a 18% decrease compared to 2023. Kenya has been the driving force in the region, attracting $638 million, which accounts for 29% of all funds raised on the continent. Tanzania follows, with $53 million, ranking seventh on the continent, followed by Uganda with $19 million.
West Africa
West Africa has recorded $587 million in funding. Nigeria has attracted over $400 million. Other top-performing countries in the region include Ghana ($68 million), Benin ($50 million), Côte d'Ivoire ($33 million), and Senegal ($22 million).
South Africa
South Africa has seen a 34% decline in funding, with $395 million invested in startups.
Central Africa
Central Africa has raised only $5 million in 2024, a significant decrease from its total in 2023.
North Africa
North Africa has mobilized $478 million, accounting for 22% of the continent's total funding. The region has experienced a 35% decline compared to 2023. Egypt has contributed 84% of the region's total, with $402 million. Morocco, on the other hand, has shown resilience, raising $70 million and ranking fifth overall. Tunisia has had a challenging year, with many startups still struggling.
