2024: Kenya,  Egypt Account for 58% of Startups’ Funding Rounds in Africa So Far

A report by “Africa: The Big Deal” has indicated that Kenya and Egypt account for no less than 58% of the funding raised by startups on the African continent in 2024.

According to the report, Kenya accounts for $437 million, equivalent to 31%, while Egypt accounts for $373 million, indicating 27%. Thus, the duo comes out on top again, with a total of 58% of all the funding raised on the continent in 2024.

For both countries, it is their highest share of funding on record since 2019, whether we compare full years or Q1-Q3 periods. On the opposite side, this means that their other two “Big Four” peers are underperforming.

The report, however, noted that Nigeria managed to capture $218 million, representing 15% of the total funding raised by startups. “Actually, Nigeria’s share (15%, $218 million) is comparable to what it was last year (14%).

However, as you may remember, 2023 had seen quite a dramatic shift for Nigeria compared to previous years when the country had represented a much larger share of the funding (35% between 2019 and 2022). With 9% ($125 million) of the funding raised in 2024 so far, South Africa is currently recording its worst performance since 2019 in terms of its share of continental funding (6%), much below its average share in the past few years (18% between 2020 and 2023).

So far this year, only 18% of the funding has gone to the “rest of Africa,” with 23 markets recording at least one deal of $100,000 or more since January 1st. Only five of them have claimed at least 10 such deals since the beginning of the year: Tanzania, Ghana, Morocco, Uganda, and Rwanda. For the three markets where at least $50 million was raised this year so far, one deal tends to drive the numbers: Spiro in Benin ($50 million out of $50 million), Nala in Tanzania ($40 million out of $53 million), and, to a lesser extent, Fido in Ghana ($30 million out of $64 million). The latter two are showing encouraging signs of growth and maturity.

Overall numbers and trends, equity vs. debt, sectors, and now it’s time to look at the geographical split. If we focus on Q3 first, as you can imagine, the d.light and MNT-Halan deals (which, as a reminder, represented more than half of the funding raised last quarter) are skewing the numbers heavily.

As a result, Egypt ($272 million, 43%) topped the charts, followed by Kenya ($201 million, 32%), which also means that three-quarters of the funding raised in Africa in Q3 went to these two markets alone.

What’s happening in the rest of the continent? Four other markets attracted $10 million or more in funding during the period: Tanzania ($43 million), South Africa ($40 million), Ghana ($35 million), and Nigeria ($26 million). Ten additional countries attracted at least one deal of $100,000 or more. However, 38 markets registered no significant startup funding activity during the period.