Kenya And Egypt Lead African Start-Up Funding in 2024, as Investments in Female-Founded Ventures Continue to Lag

According to a recent report by Africa: The Big Deal, Kenya, and Egypt have emerged as the top destinations for start-up funding in Africa, with the two countries collectively capturing three-quarters of all investments in Q3 2024.

Together, these two countries accounted for over three-quarters of all investments in the third quarter of 2024, underscoring their status as leading tech hubs on the continent. Egypt led the way, securing $272 million in funding (43%), followed closely by Kenya with $201 million (32%). Significant deals like .light and MNT-Halan, which together accounted for more than half of the total funding raised in the quarter, propelled Egypt to the lead.

While Kenya and Egypt continue to dominate, other African markets are also making strides. Across the rest of the continent, only four other markets secured $10 million or more during the period. This includes Tanzania ($43 million), South Africa ($40 million), Ghana ($35 million), and Nigeria ($26 million). Also, Ten additional countries managed to close at least one deal worth $100k or more, while 38 markets recorded no notable start-up funding activity.

Taking a broader look at 2024 as a whole, Kenya ($437 million, 31%) and Egypt ($373 million, 27%) continue to dominate the funding landscape, accounting for 58% of the total funds raised so far this year.  This marks a record high for both countries since 2019,  surpassing the previous full-year and Q1-Q3 performance. On the opposite side, the other two members of the “Big Four” in African start-up ecosystems, Nigeria and South Africa, have seen their shares decline.

Nigeria and South Africa, the two other members of the “Big Four” in African start-up ecosystems, have seen their shares drop. Nigeria’s share of funding stands at 15% ($218 million), a slight increase from last year’s 14%, but significantly lower than its 35% share from 2019 to 2022. South Africa’s performance is even more concerning, with a 9% share ($125 million, its lowest since 2019, far below its 18% average.

This year, only 18% of total funding has gone to the rest of Africa, with 23 markets recording at least one $100k+ deal. Among them, Tanzania, Ghana, Morocco, Uganda, and Rwanda have each secured at least 10 such deals since January. However, in most cases, one major transaction heavily influenced the numbers, such as Spiro’s $50 million deal in Benin and Nala’s $40 million deal in Tanzania. Despite the overall growth in funding, gender disparities persist. In 2024, less than 5% of total investments have gone to start-ups led by female CEOs, a decline from the 5.6% average between 2019 and 2023.

Gender Disparity

Despite the overall growth in funding, gender disparities persist in the African tech ecosystem. In 2024, less than 5% of total investments went to start-ups led by female CEOs, a decline from the 5.6% average between 2019 and 2023. Additionally, only 9% of funding was allocated to start-ups with at least one female founder, down from 17% in previous years. Start-ups with exclusively female founders received less than 1% of funding, a drop from 2.1% during 2019-2023.

While the gender gap remains a significant challenge, a few women like Carrol Chang (CEO of Andela), Cikü Mugambi (CEO of KOBO, Anu Adasolum (CEO of Sabi), Belinda Shaw ( Co-founder and CEO of CAPE BIO PHARMS) and Uche Ogboi (CEO of LORI), continue to make their mark despite the odds, standing alongside 96 male CEOs leading Africa’s most funded ventures.

Since 2019, 27 African start-ups have raised over $100 million in equity, debt, or grant funding, with MTN-Halan leading the charge, raising nearly $1 billion in the past five and a half years, followed by Sun King and OPay. Broadening the scope to those that have raised $50 million or more, the number rises to 56 ventures, with the Top 100 being a key benchmark for future success.