Africa’s Startup ecosystem achieved notable progress in 2024, with many securing the necessary funding for growth and expansion.
This success came despite the complex and often restrictive legislative environments in various countries, which can hinder Startups’ effectiveness from the outset.
The funding landscape for Startups now includes venture capitalists investing in innovative companies and crowdfunding, which relies on online contributions from many individuals.
Some African Startups have also become so successful that they have achieved ‘unicorn’ status – a designation given to a company that has grown to US$ 1 billion in value.
In 2024, African Startups secured $2.2 billion in equity, grants, and exits
A recent report by Africa: The Big Deal highlights the resilience of African start-ups, despite a decline in investment.
East Africa dominates Startup funding in 2024
In 2024, African start-ups secured $2.2 billion in equity, grants, and exits, representing a 25% decrease from 2023’s $2.9 billion and a 53% drop from 2022’s $4.6 billion.
The report reveals that East Africa led the way in start-up funding, with $725 million, followed by West Africa ($587 million), North Africa ($478 million), and South Africa ($397 million).
The report also identifies the top 10 African countries that attracted the most start-up funding in 2024;
| Rank | Country | Amount $ |
| 1 | Kenya | 638M |
| 2 | Nigeria | 410M |
| 3 | Egypt | 400M |
| 4 | South Africa | 394M |
| 5 | Morocco | 70M |
| 6 | Ghana | 68M |
| 7 | Tanzania | 53M |
| 8 | Benin | 50M |
| 9 | Cote d’Ivoire | 33M |
| 10 | Senegal | 22M |
In 2024, the Big Four – Kenya, Nigeria, Egypt, and South Africa – dominated start-up funding, accounting for 84% of total investments.
Kenya stood out, with its Startup founders securing more funding than their counterparts in Nigeria and other countries.
Kenya alone accounted for 88% ($638 million) of East Africa’s total funding.
Nigeria reinforced its dominance in West Africa, securing $410 million in funding in 2024, which accounted for nearly 70% of the region’s total funding of $587 million.
Egypt raised $400 million, although overall funding in North Africa declined by 22% to $478 million while South Africa garnered $394 million, with funding in its region dropping 18% to $397 million.