Total investment into the African tech startup ecosystem fell by more than 50 per cent to US$1.1 billion in 2024 as the impacts of the global capital shortage continued to make themselves felt on the continent.
This is according to the 10th edition of the annual African Tech Startups Funding Report released by startup news and research portal Disrupt Africa, which is available free to all as part of an open-sourcing initiative in partnership with Art of Scale.
A total of 200 startups raised a combined total of US$1.1 billion over the course of the year, by more than 100 per cent on 406 startups and over 50 per cent on US$2.4 billion in 2023. This is the second consecutive year of decline as the sector feels the effects of the global capital shortage.
The number of active investors fell again, but 35 per cent, while M&A activity also witnessed a significant decline.
Though each of the so-called “big four” of African tech – Nigeria, Egypt, Kenya and South Africa – raised significantly less funding than in 2023, they retained their overall share of funding, as capital remained focused on markets perceived as being less risky during the global capital shortage.
Fintech once again proved by far and away the most popular sector for investors in African tech startups in 2024, yet it saw a second successive year of decline, and indeed declined at a greater rate.
The report is available for free download here. Aside from providing a full list of the funded startups, who invested in them, and, where possible, the amount raised, from the previous year, the annual reports also provide deep-dives into investment trends within key startup geographies and verticals, as well as data on African startup acquisitions.
“2024 was a very difficult year indeed for African tech from a funding perspective, with a significant decline in investment for the second year in a row. Many startups out there are struggling, but this is not a phenomenon unique to Africa, and indeed we are not seeing the same levels of decline as witnessed elsewhere in the world. And with Q4 2024 and Q1 2025 numbers on the up, we can at least hope that the end of the crisis is near,” said Disrupt Africa co-founder Gabriella Mulligan.
To download the report click here
Source: Disrupt Africa