African tech funding drops to $780million lowest in 4 years 

African tech startups in the first half of the year ended June 30, 2024, secured $780 million in funding, marking the lowest amount since late 2020.  

This total represents a major decrease of 31% compared to H2 2023 and a stark 57% decline compared to H1 2023, highlighting the challenging funding environment, analysis by Africa: The Big Deal stated in a report. 

“Geographically, the “Big Four”—Nigeria, South Africa, Kenya, and Egypt—continued to dominate the funding landscape, attracting four out of every five investment dollars. Within this group, Kenya emerged as the frontrunner, securing a third of the total funding.” Although the concentration of funds in these key markets is significant, it is slightly below the peak of 92% observed in H1 2023. 

Out of the $780 million secured, Kenya garnered $244 million, representing 32% of the total funding raised, while Nigeria received approximately $172 million. Egypt took a share of $101 million, and South Africa secured $85 million. 

 Over the last five years, from 2019 to 2023, Nigerian startups received the largest portion of funds raised by African startups, accounting for 29% of the $15 billion total investments.

Specifically, Nigerian startups received $4.4 billion out of the $15 billion that flowed into Africa during this period. 


Nigeria lost its top position in African startup funding to Kenya in 2023, with Kenyan startups attracting approximately $800 million, the largest amount in the continent. 

 While Kenya experienced a decline of 25% year-on-year, its share of Eastern Africa’s funding increased from 86% in 2022 to 91% in 2023. During this period, 93 startups in Kenya raised $100k or more, accounting for 19% of Africa’s total. 

 Earlier this year, Microsoft Corporation and G42, a leading artificial intelligence company in the United Arab Emirates, announced plans to build a $1 billion geothermal-powered data centre in Kenya.  

 This development follows Microsoft’s decision to close its African Development Centre in Lagos, Nigeria, resulting in the loss of approximately 200 jobs. 

What to know 

Despite a significant drop in funding since the first quarter of 2024 falling by more than 45% to $466 million, representing a 9% quarter-on-quarter decline and a 47% year-on-year decline equity financing still comprised two-thirds of this amount, while debt financing accounted for the remaining third.

This marks a notable increase in debt financing from the historical average of 17% since 2019. 

This shift reflects a broader trend in the financing landscape, potentially indicative of investors’ growing preference for more secure returns amid economic uncertainties. 

The Transport and Logistics sector led the way in attracting investment, capturing 28% ($218 million) of the total funds. 

 This was driven by two major deals involving Moove at $100 million and Spiro at $50 million. Meanwhile, the Fintech sector, although second in terms of total funding, remained the leader in the number of start-ups raising $1 million or more, with 30 such deals recorded in H1 2024. 

 Despite the overall investment activity, the disparity in funding for female-founded and female-led start-ups remains stark.  

A mere 15% of the total funding went to ventures with at least one female founder, and only 8% to companies with a female CEO.

This highlights the ongoing gender imbalance in the start-up ecosystem, a challenge that needs addressing to foster more inclusive growth. 



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