Tech startups from Nigeria raised over $400 million in 2024 but that was not enough to displace Kenya, which overtook Nigeria in terms of fundraising since 2023.
This is according to the funding report by Africa: The Big Deal, which tracks startup funding across the continent.
With only two mega deals: Moove’s $110 million including a $100 million Series B round led by Uber, and Moniepoint’s $110 million Series C round, Nigerian startups funding for 2024 was about the same figure of $410 million recorded in 2023.
Regional performance
The report showed that the African startup ecosystem showcased resilience in 2024, with East Africa emerging as the dominant force for the second consecutive year, despite a year-over-year decline in total funding across the continent.
- The region retained its top position, attracting $725 million in funding, which represented 33% of the continent’s total of $2.2 billion.
- Although this marked an 18% year-over-year decline, the region outpaced others in overall funding. Kenya played a pivotal role, accounting for $638 million or 88% of East Africa’s total, making it the leading market in Africa for startup funding in 2024.
- Kenya’s dominance was driven by substantial investments in climate tech startups like d.light, SunCulture, and Basigo.
- In contrast, Tanzania ($53 million) and Uganda ($19 million) contributed smaller portions to the region’s funding total, ranking 7th and 11th on the continent, respectively.
West Africa: A balanced comeback
West Africa climbed to the second spot, raising $587 million, which accounted for 27% of Africa’s total funding in 2024.
The region saw only a minor drop of 3% year-over-year, a significant improvement after losing its top position in 2023.
“Nigeria led the region, securing over $400 million in funding, on par with Egypt and South Africa.
“However, West Africa demonstrated remarkable diversity, with four countries—Ghana ($68 million), Benin ($50 million), Côte d’Ivoire ($33 million), and Senegal ($22 million)—contributing to the region’s success,” the report stated.
North and Southern Africa
North Africa saw a sharp decline in funding, dropping 35% year-over-year to $478 million. Egypt, the region’s dominant player, recorded an even steeper decline of 37%, representing 84% of North Africa’s total funding.
- Morocco, however, managed to hold its ground, securing $70 million, which positioned it as the fifth-largest funding recipient on the continent. Yet, it wasn’t enough to offset Egypt’s downturn.
- Southern Africa faced similar challenges, with funding dropping by 36% year-over-year to $397 million. South Africa, the region’s cornerstone, saw a 34% decline but still accounted for an overwhelming 99.4% of Southern Africa’s total funding.
- This concentration highlights the region’s historical reliance on South Africa, with limited contributions from other countries.
- Central Africa recorded the lowest funding activity in 2024, raising just $5 million—more than 10 times lower than its 2023 total. The region’s contribution remained negligible, further emphasizing the dominance of Africa’s Big Four markets.
More insights
The Big Four: Kenya, Nigeria, Egypt, and South Africa continued to dominate, collectively attracting 84% of all startup funding in Africa in 2024, consistent with trends since 2019.
These markets play a critical role in shaping regional and continental dynamics.
The continued success of the Big Four and the growing contributions from emerging markets like Morocco, Ghana, and Benin will be instrumental in defining Africa’s startup trajectory in 2025 and beyond.
