African startups collectively raised over $1 billion in equity funding in the first half of 2024, signaling cautious optimism for the continent’s tech ecosystem after a challenging 2023. According to data from Africa: The Big Deal, this total—approximately $1.1 billion—represents a modest rebound, showing resilience despite global economic slowdowns and investor caution.
Egypt led the continent, attracting about $360 million in startup funding, fueled by large rounds in fintech, logistics, and e-commerce. South Africa followed with $330 million, with key deals in healthtech, energy, and financial services.
Nigeria ranked third, raising roughly $280 million within the six-month period. Though lower than its figures from previous years, Nigeria’s performance highlights its continued relevance in Africa’s startup space. Lagos remains a major startup hub, with a concentration of activity in fintech, agritech, and edtech. Notable Nigerian startups continue to gain investor interest, driven by a large market, youthful population, and increasing tech adoption.
Kenya came in fourth with around $170 million in funding, slightly lower than usual, possibly due to regulatory and economic headwinds. These four countries—Egypt, South Africa, Nigeria, and Kenya—accounted for over 90% of all startup funding on the continent in H1 2024. Fintech continues to dominate funding across Africa, maintaining its position as the most attractive sector. However, investors are increasingly diversifying into logistics, climate tech, healthtech, agritech, and education technology. Climate-focused startups, in particular, are seeing rising global interest, as sustainability and environmental concerns become central to investor strategies.
Despite positive funding activity, many African startups face challenges such as currency depreciation, inflation, inconsistent regulation, and limited access to follow-on capital. Nevertheless, investors are shifting from backing hyper-growth startups toward those with strong fundamentals, clear business models, and paths to profitability.
Nigeria’s third-place ranking is a testament to its enduring role in the African startup ecosystem. The country benefits from a large, digitally savvy population and a strong entrepreneurial culture. Nigerian startups are increasingly focused on solving local problems with scalable solutions, attracting support from both local and international investors.
However, regulatory uncertainty, high operational costs, and infrastructural deficits remain major constraints. For Nigeria to reclaim the top spot in funding, it will need to foster a more enabling environment, streamline business regulations, and invest in infrastructure that supports innovation and technology growth.
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