Africa’s start-up ecosystem experienced notable shifts in funding distribution across its regions in 2024, with “The Big Four” countries, Kenya, Nigeria, Egypt, and South Africa continuing to dominate.
A report from Africa: The Big Deal, revealed that together, these nations accounted for 84% of all startup funding on the continent, maintaining their long-standing influence since 2019.
In terms of regional funding, East Africa led the pack securing the highest share of startup funding across the continent. This surge in capital inflow is a continuation of an impressive trend that began in 2023, demonstrating increasing investor confidence in the region.
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Here’s a closer look at the regional trends of funding in 2024
East Africa
For the second consecutive year, East Africa secured the highest share of start-up funding, raising a total of $725 million despite an 18% year-over-year (YoY) decline. Kenya spearheaded the region’s success, attracting $638 million–an impressive 88% of East Africa’s total funding and 29% of all funds raised on the continent. Large-scale investments in elimate tech companies such as d.light, SunCulture, and Basigo played a significant role in this achievement.
Tanzania emerged as a distant second within the region, raising $53 million, ranking seventh on the continent, followed by Uganda at $19 million. Countries like Rwanda, Sudan, and Ethiopia also showed some level of funding activity, albeit on a smaller scale.
Western Africa
Western Africa saw a resurgence, climbing from fourth place in 2023 to the second spot in 2024 with $587 million in total funding, representing 27% of the continent’s share. Nigeria, the regional leader, attracted over $400 million, contributing 70% of the region’s total funding. This marks a stable performance compared to 2023. Additionally, countries like Ghana ($68 million), Benin ($50 million), Côte d’Ivoire ($33 million), and Senegal ($22 million) contributed significantly to Western Aftica’s relatively balanced funding landscape. Collectively, these nations ensured the region experienced only a minor funding dip of 3% YOY.
Northern Africa
Northern Africa raised $478 million in 2024, accounting for 22% of the continent’s total funding but suffering a significant 35% YoY drop. Egypt, which contributed 84% of the region’s total with $402 million, experienced a sharp 37% decline. Morocco, on the other hand, showed resilience, raising $70 million and ranking fifth overall. Despite its performance, Morocco’s efforts couldn’t offset Egypt’s contraction, leading to an overall downturn in the region.
Southern Africa
Southern Africa faced a 36% YoY funding decline in 2024, securing $397 million-18% of the continent’s total. South Africa, the region’s dominant player, accounted for 99.4% of this funding but experienced a 34% drop. The lack of significant funding activity beyond South Africa has historically been a challenge, which became even more pronounced in 2024.
Central Africa
Central Africa recorded a dramatic drop in start-up funding, raising just $5 million in 2024 more than ten times lower than its total in 2023. The region continues to lag behind its counterparts, underscoring the need for stronger investment pipelines and ecosystem support.
Conclusion
Africa’s start-up funding dynamics in 2024 highlight the continued dominance of “The Big Four” countries while revealing varied performances across regions. While East Africa maintained its leadership position last year, it is poised to maintain momentum as the region has seen an influx of investors.