African startups raised $2.2 billion in 2024, after overcoming a slow start to the year with a much-improved second half. As has been the case since 2019, the big four of Nigeria, Kenya, South Africa and Egypt dominated. These four countries accounted for 84% of the $2.2 billion invested in African startups in 2024, strongly influencing regional funding. However, funding levels suffered a substantial 25% drop compared to the previous year.
East Africa, driven by Kenya, maintained its lead in attracting the largest share for the second straight year. With $638M raised in 2024, Kenya accounted for nearly 30% of all African startup funding, leading the continent’s tech ecosystem. Tanzania and Uganda followed, securing $51M and $19M in funding, respectively, placing them second and third in East Africa.
Nigeria was top in West Africa and second overall in Africa. The West African nation attracted $410M in 2024. Ghana ($68M) was second and Benin ($50m) came in third in that region.
Egypt received $400M in funding, making it the third-highest recipient in Africa. A total of $478M went to North Africa, representing 22% of all funds raised on the continent. South Africa was fourth attracting $394M. The Southern African region’s share of total funding in 2024 was 18%, amounting to $397M.
Egypt and South Africa Funding Decline
Although North Africa received $478 million, funds raised in the region decreased by 35% between 2023 and 2024. This decline was largely driven by a sharp 37% year-over-year contraction in Egypt—the most severe among the “Big Four”—which accounted for 84% of the region’s funding in the previous year. While Morocco ($70 million) performed relatively well, it couldn’t offset Egypt’s significant drop.
According to the report by the Big Deal, funds raised in Southern Africa dropped by 36%, very similar to the 34% drop in South Africa. Almost all (99.4%) of the region’s funding went to South Africa, making the usual lack of investment for other countries there even worse.
Read: Navigating the Turbulent Waters of African Startup Funding
The number of deals in Central Africa was minimal in 2024, resulting in a total investment amount of $5 million—a more than tenfold reduction compared to 2023.
