Disrupt Africa Reports 50% Dip in 2024 African Tech Funding to $1.1B
TLDR
- Investment in African tech startups fell by more than 50% to $1.1 billion in 2024
- A total of 200 startups secured funding, down more than 100% from 406 startups in 2023
- Despite the downturn, Africa’s "Big Four" tech hubs—Nigeria, Egypt, Kenya, and South Africa—retained their share
Investment in African tech startups fell by more than 50% to $1.1 billion in 2024, marking the second consecutive year of decline amid a global capital shortage, according to the African Tech Startups Funding Report by Disrupt Africa.
A total of 200 startups secured funding, down more than 100% from 406 startups in 2023, when total investment reached $2.4 billion. The number of active investors also declined by 35%, while mergers and acquisitions (M&A) activity saw a significant drop.
Despite the downturn, Africa’s "Big Four" tech hubs—Nigeria, Egypt, Kenya, and South Africa—retained their share of total funding, as investors focused on lower-risk markets. Fintech remained the most attractive sector but recorded a sharper decline in investment compared to previous years. While 2024 was challenging, recent data from Q4 2024 and Q1 2025 suggests a potential recovery.
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Key Takeaways
The African tech ecosystem is grappling with tightened capital flows, mirroring global trends in venture funding slowdowns. Startups face longer fundraising cycles and tougher valuations, forcing many to adapt business models or seek alternative financing. Despite the drop, Africa’s long-term growth potential remains strong. Investors are still backing startups in fintech, health tech, and logistics, while regional players consolidate market share. If funding rebounds in 2025, as early indicators suggest, the ecosystem could regain momentum, positioning African startups for long-term sustainability.
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