- Kenya leads in funding, attracting $244 million of the $780 million raised by African tech startups in H1 2024
- Total H1 2024 funding for African tech startups declined by 31% compared to H2 2023 and 57% compared to H1 2023
- Two-thirds of the $780 million funding was raised using equity, with debt representing 33% and grants 1%
- The “Big 4” tech startup ecosystems in Kenya, Nigeria, Egypt, and South Africa raised $602 million, representing 79% of total funding
- Transport and Logistics sector attracted the most funding in H1 2024 at $218 million, followed by Fintech at $186 million
Kenya Tech Startups Lead the Way in African Funding
In the dynamic landscape of African tech startups, Kenya has emerged as a frontrunner in attracting funding, accounting for a significant 32% of the $780 million raised by African tech startups in the first half of 2024. This substantial influx of funding into Kenya underscores the country’s growing reputation as a hub for innovation and entrepreneurship within the tech sector.
Decline in African Startup Funding
The first half of 2024 witnessed a total funding amount of $780 million raised by African tech startups, reflecting a 31% decline from the funding levels seen in the second half of 2023. Furthermore, when compared to the funding numbers from the first half of 2023, there was a sharp 57% decline, indicating a challenging environment for startup funding across the continent.
Key Players in African Tech Startup Ecosystem
Following closely behind Kenya in terms of funding raised was Nigeria, securing $172 million, which represented 23% of the total funding. Egypt and South Africa also featured prominently, with $101 million and $85 million respectively. Collectively, these four countries, known as the Big 4 tech startup ecosystems, raised a substantial $602 million, constituting 79% of the total funding in the region.
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Industry Focus and Gender Disparity
The Transport and Logistics sector emerged as a significant recipient of funding, attracting $218 million, representing 28% of the total funding in the first half of 2024. Fintech followed closely behind, securing $186 million, while Energy and Water raised $132 million. Despite the impressive funding numbers, gender disparity remains a notable issue in the African tech startup space, with male-led startups continuing to dominate funding allocations.
The landscape of tech startups in Kenya and across Africa continues to evolve, with Kenya leading the charge in attracting significant funding. While challenges persist, such as declining overall funding levels and gender disparities, the resilience and innovation of African tech entrepreneurs remain a driving force in shaping the future of the continent’s tech ecosystem.
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