Kenya emerged as a dominant force in Africa’s startup ecosystem for the second consecutive year, raising $638 million in 2024.
This dominance accounted for 88% of East Africa’s total funding and 29% of the continent’s overall startup investment, placing Kenya ahead of Nigeria, Egypt, and South Africa. Together, these four nations attracted 84% of Africa’s total funding, continuing a trend observed since 2019.
East Africa secured its position as the most funded region, attracting $725 million, representing one-third of Africa’s total startup funding in 2024. Despite an 18% year-on-year decline, Kenya played a pivotal role in the region’s success. Its remarkable performance was fueled by large deals in the climate technology sector, with companies like d.light, SunCulture, and Basigo leading the way.
Other East African countries contributed smaller shares, with Tanzania raising $53 million (ranking 7th) and Uganda securing $19 million (ranking 11th). Minimal funding activity was recorded in Rwanda, Sudan, and Ethiopia.
Meanwhile, West Africa climbed to the second position, securing $587 million, or 27% of Africa’s total funding—a notable improvement from its fourth-place ranking in 2023. Nigeria led the region, raising over $400 million, comparable to Egypt and South Africa’s funding levels.
The region also demonstrated a balanced distribution of investments, with its leader contributing 70% of the total. Ghana ($68 million, ranking 6th), Benin ($50 million, ranking 8th), Côte d’Ivoire ($33 million, ranking 9th), and Senegal ($22 million, ranking 10th) made significant contributions. The region’s funding decline was limited to just 3% year-on-year, showcasing consistent performance across multiple nations.
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However, Southern Africa recorded $397 million, representing 18% of Africa’s total funding, but faced a 36% decline compared to 2023. South Africa accounted for 99.4% of the region’s funding, raising $394 million. Other Southern African nations struggled to attract significant venture capital, underscoring the region’s dependency on South Africa.
Central Africa saw minimal funding activity, with a total of just $5 million—a tenfold decrease from the previous year. The limited deal flow highlighted ongoing challenges in attracting venture capital investment to the region.
Africa’s startup funding landscape in 2024 reflected regional disparities but showcased Kenya’s dominant role in driving the continent’s innovation and investment growth.
