Nigeria Retakes Top Spot as African Tech Startups See Funding Drop
TLDR
- Funding for African tech startups fell sharply in 2024, with total investment declining by more than 50% to $1.1 billion
- The number of funded startups dropped from 406 in 2023 to 200 in 2024, marking the second consecutive year of decline
- Nigeria reclaimed its position as Africa’s most funded tech ecosystem, raising $331.6 million, accounting for 29.6% of total funding
Funding for African tech startups fell sharply in 2024, with total investment declining by more than 50% to $1.1 billion, according to Disrupt Africa’s latest annual report. The number of funded startups dropped from 406 in 2023 to 200 in 2024, marking the second consecutive year of decline amid a global capital shortage.
Nigeria reclaimed its position as Africa’s most funded tech ecosystem, raising $331.6 million, accounting for 29.6% of total funding. However, the amount was still down 17% from the previous year. Egypt followed closely with $312.1 million, despite securing investments for 51 startups—more than any other country.
Kenya and South Africa saw steep declines. Kenya’s funded startups dropped by 55%, securing $100.4 million. South Africa, which had defied funding trends in 2023, saw its investment fall over 80% to $100.4 million.
Daba is Africa's leading investment platform for private and public markets. Download here
Key Takeaways
Despite the funding decline, the "big four" markets—Nigeria, Egypt, Kenya, and South Africa—continued to dominate, accounting for 88.8% of total investment. While Nigeria led in total funding, Egypt was the only country to see an increase in the number of startups funded. The sharp drop reflects a cautious investor climate, with venture capitalists favoring markets perceived as less risky. The slowdown has forced African startups to seek alternative funding sources, including corporate partnerships and government-backed initiatives. Meanwhile, funding activity outside the top four markets remained limited, with only 57 startups from 13 other African countries securing investment in 2024.
Think someone else should see this?
To invest in this opportunity and other opportunities across Africa
Download the daba finance app on your mobile through
Take action.
Download app
Start investing in Africa’s best opportunities, including stocks, bonds, startups, venture funds, and more.
Partner with us
Unlock exciting business opportunities and growth potential.
Join Daba
Become a part of our vibrant community and enjoy exclusive benefits.
Contact us
Reach out to us for inquiries, support, or collaboration.