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African Tech Startups Raised $780 million in the First Half of 2024, the Lowest Funding Since 2020

By Oluchukwu Ikemefuna

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African tech startups raised a total of $780 million in the first half (H1) of 2024, a 31% decline from the second half of 2023 and a steep 57% drop compared to the first half of 2023. 

This funding amount represents the lowest recorded since the second half of 2020, indicating a continued decline in investment into the continent’s startup ecosystem.

Equity Dominates Funding, Transport and Logistics Sector Leads

Two-thirds of the total funding, or $513 million, came in the form of equity, an improvement from 60% in 2023. 

Debt financing accounted for 33% of the total, down from 38% in 2023, while grants made up the remaining 1%.

African Tech Startups Raised $780 million in the First Half of 2024, the Lowest Funding Since 2020

The Transport and Logistics sector attracted the most funding, raising $218 million or 28% of the total. 

This was boosted by two of the three largest deals in H1, which were in this sector. 

Fintech came in second with $186 million (24%), followed by Energy and Water with $132 million (17%).

Kenya Surpasses Nigeria as Top Funding Destination

Due to African tech startups raising $780 million in H1 of 2024, Kenya emerged as the top destination for African tech startup funding, attracting $244 million or 32% of the total. 

Nigeria followed with $172 million (23%), Egypt with $101 million (13%), and South Africa with $85 million (11%). 

Together, these four ecosystems raised $602 million, representing 79% of the continent’s total funding.

Read More: Renda Raises $1.9 Million to Expand Across Nigeria, Kenya

Male-led Startups Dominate Funding

Despite efforts to promote gender parity, male-led startups continued to dominate the funding landscape in H1 2024. 

Startups without a single female founder received 85% of the funding, while 92% went to startups with a male CEO. 

Only 15% of funding went to startups with at least one female founder, and 8% to those with a female CEO. This disparity highlights the need for more inclusive funding practices.

The African startup funding winter has persisted, with H1 2024 recording the lowest funding levels since 2020. 

While equity financing has increased, the Transport and Logistics sector has emerged as the top recipient, and Kenya has surpassed Nigeria as the leading funding destination. 

However, the continued dominance of male-led startups in the funding landscape remains a concern that requires urgent attention to foster a more equitable and inclusive startup ecosystem in Africa.

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Oluchukwu Ikemefuna
Oluchukwu Ikemefuna

Oluchukwu Blessing Ikemefuna, a talented content writer from Anambra, Nigeria, found her writing passion in secondary school. Holding a degree in Biological Sciences from Federal University of Technology, Owerri, she specializes in blog writing across technology, finance, healthcare, education, and lifestyle sectors. With strong research and SEO skills, Oluchukwu creates engaging content globally. Her work aims to inspire and engage authentically while driving action. Outside work, she enjoys travel, reading, and movies as she grows as a skilled writer.

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