Nigeria Retakes Top Spot as African Tech Startups See Funding Drop
TLDR
- Funding for African tech startups fell sharply in 2024, with total investment declining by more than 50% to $1.1 billion
- The number of funded startups dropped from 406 in 2023 to 200 in 2024, marking the second consecutive year of decline
- Nigeria reclaimed its position as Africa’s most funded tech ecosystem, raising $331.6 million, accounting for 29.6% of total funding
Funding for African tech startups fell sharply in 2024, with total investment declining by more than 50% to $1.1 billion, according to Disrupt Africa’s latest annual report. The number of funded startups dropped from 406 in 2023 to 200 in 2024, marking the second consecutive year of decline amid a global capital shortage.
Nigeria reclaimed its position as Africa’s most funded tech ecosystem, raising $331.6 million, accounting for 29.6% of total funding. However, the amount was still down 17% from the previous year. Egypt followed closely with $312.1 million, despite securing investments for 51 startups—more than any other country.
Kenya and South Africa saw steep declines. Kenya’s funded startups dropped by 55%, securing $100.4 million. South Africa, which had defied funding trends in 2023, saw its investment fall over 80% to $100.4 million.
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Points clés à retenir
Despite the funding decline, the "big four" markets—Nigeria, Egypt, Kenya, and South Africa—continued to dominate, accounting for 88.8% of total investment. While Nigeria led in total funding, Egypt was the only country to see an increase in the number of startups funded. The sharp drop reflects a cautious investor climate, with venture capitalists favoring markets perceived as less risky. The slowdown has forced African startups to seek alternative funding sources, including corporate partnerships and government-backed initiatives. Meanwhile, funding activity outside the top four markets remained limited, with only 57 startups from 13 other African countries securing investment in 2024.
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