In 2024, fintech solidified its position as the leading sector for start-up funding in Africa, attracting nearly half of the total investment.
Report by Africa: The Big Deal, revealed that fintech startups garnered over $1 billion, representing a significant year-on-year (YoY) growth from 42% of total funding in 2023 to an impressive 47% in 2024, the sector’s highest share since 2021.
Four of the ten largest fundraisers of 2024 were fintech companies. These include the new unicorns Moniepoint and TymeBank, alongside MNT-Halan and M-Kopa. Interestingly, fintech’s dominance wasn’t evident in the first half of the year, when it accounted for just 22% of total funding. However, a surge in deals during the second half (H2), highlighted by Tyme’s substantial fundraising catapulted the sector to the top.
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The Energy sector gained significant ground in 2024, emerging as the second-most funded sector, replicating its position from the previous year. Startups in this sector raised a total of $440 million, accounting for 20% of the year’s funding. Two significant players, D.light ($192 million) and Sun King ($87 million) contributed nearly two-thirds of the sector’s total. However, the energy sector experienced a steep decline, with total funding dropping by 42% YoY. Other sectors, such as Agri & Food (-44%) and Healthcare (-61%), also suffered significant losses.
Logistics & Transportation held its third-place position in 2024, attracting $288 million in funding, an increase from $271 million in 2023 (+6% YoY). This growth boosted the sector’s share of total funding from 9% to 13%.
Three startups Moove, Basigo, and Spiro dominated the sector, securing 75% of its total funding. It is however interesting to note that Logistics & Transportation was the only sector to record an increase in funding compared to 2023, further highlighting its resilience and growing importance.
Together, fintech, energy, and logistics & transportation accounted for 80% of all start-up funding in Africa in 2024. Notably, Climate Tech represented 32% of the total invested in start-ups in Africa in 2024. This is a bit less than in 2023 (36%) and this decrease is actually mostly due to the drop in funding going to the energy sector
Other sectors faced both absolute and relative declines, with the exceptions being Deeptech and ‘Services.’ The latter was bolstered by Moroccan travel infrastructure API provider Nuitée, which raised a Series A round in December, making it one of the year’s top 10 transactions.
This data underscores the concentrated nature of funding within a few key sectors and highlights shifting priorities in Africa’s startup ecosystem.
Conclusion
Despite a challenging funding landscape in 2024, fintech emerged as the undisputed leader, achieving record-breaking investments and driving innovation across Africa. Energy and logistics followed, highlighting their strategic importance, while other sectors struggled to maintain momentum.
The year reaffirmed the dominance of fintech and the growing diversification of Africa’s start-up ecosystem.