African startup secured $1.9 billion in funding between January and November 2024, marking a significant 32% decline compared to $2.8 billion during the same period in 2023. Data from Africa: The Big Deal, a data analysis firm, highlights the steep drop as part of a broader trend affecting the continent’s startup ecosystem.
In November 2024 alone, 32 startups across Africa announced $180 million in funding, with the breakdown including $122 million in debt (68%), $55.5 million in equity (31%), and $2.5 million in grants (1%). The most notable deal during the month was Sun King’s $80 million debt funding by the International Finance Corporation (IFC).
Other significant funding announcements in November included:
- Mawingu (Kenya-based ISP): $15 million in debt and equity for East African expansion.
- Djamo (Ivory Coast-based fintech): $13 million in funding.
Meanwhile, Kenya and Nigeria continue to dominate the funding landscape, accounting for 76% of all funding raised. Out of the total $1.9 billion:
- $1.2 billion (64%) was raised through equity.
- $635 million (34%) through debt.
- $33 million (2%) in grants.
The third quarter of 2024 was the most successful, with over $600 million raised—more than double the amount secured in Q2. This increase was driven by two major deals:
- D.light’s $176 million securitization multi-currency funding.
- MNT-Halan’s $157.5 million funding.
Historically, 2022 saw African startups raise $4.3 billion between January and November, while 2021 recorded $3.9 billion during the same timeframe.
Also, Analysts attribute the ongoing decline in African startup funding to:
- Global economic disruptions, including the Russia-Ukraine war and the Israel-Hamas conflict.
- Regional instability, driven by corruption, insecurity, and political challenges in some African countries.
Furthermore, While the landscape remains challenging, innovators and investors continue to explore opportunities, demonstrating resilience in Africa’s growing tech ecosystem.
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