Funding for African startups continues to decline sharply, with the first half of 2024 being the quietest half since the second half of 2020. This marks a significant decrease from the previous year, with the “big four” startup hubs of Nigeria, Kenya, Egypt and South Africa continuing to dominate the funding landscape.
African startups raised $780 million in the first half of 2024, a 57% drop compared to the same period in 2023. This is according to data released on Thursday, July 4, by Africa: The Big Deal, a database that tracks investments of over $100,000 in the continent’s startup ecosystem.
Of the total capital raised, 66% ($513 million) was raised in the form of equity and $254 million (33%) was secured as debt. Startups from the four largest countries (Kenya, Nigeria, Egypt and South Africa) accounted for 79% of the total capital raised during this period.
Kenya led the way with $244 million (32%), followed by Nigeria with $172 million (23%), Egypt with $101 million (13%) and South Africa with $85 million (11%). Outside the Big 4, Benin stood out with start-up Spiro raising $50 million in debt from the African Export-Import Bank. Ghana followed with $29 million, Uganda with $19 million, Morocco with $14 million and Senegal with $11 million.
Led by Nigeria’s Moove ($100 million) and Benin’s Spiro ($50 million), transportation and logistics startups led the sector with $218 million, accounting for 28% of total funding. Fintech followed with $186 million (24%), while energy and water startups rounded out the top three with $132 million (17%).
Adonis Conrad Quenum
