African countries with the largest tech funding in H1 2024

African tech startups pulled in $780 million (excluding exits) in the first half of 2024 according to a recent report by Africa: The Big Deal.

African countries with the largest tech funding in H1 2024
  • Business Insider Africa presents African countries with the largest tech funding in H1 2024.
  • The list is courtesy of Africa: The Big Deal.
  • African startups pulled in $780 million (excluding exits) in the first half of 2024.

Overall, African startups pulled in $780 million (excluding exits) in the first half of 2024 according to a recent report by Africa: The Big Deal. It has been described as the quietest semester in terms of start-up funding in Africa since late 2020

The total funding marks a 31% drop compared to the second half of 2023 and an even bigger 57% decline compared to the first half of 2023 when you factor in seasonality.

Per the report, two-thirds of this funding came from equity, with the other third being debt. Compared to the past (17% debt on average since 2019), this is a significant increase in debt funding.

Four out of five dollars invested in African startups went to ventures based in the Big Four. While high, it’s not the highest recorded ever (92% back in H1 2023). A third of all the funding went to Kenya alone.

Kenya led for the third consecutive semester, attracting nearly a third (32%) of all startup funding on the continent in H1 2024, raising $244 million.

Kenya's share of the total funding increased by 5 percentage points compared to 2023. In 2024, 86% of all the funding raised in Eastern Africa went to Kenya, compared to 89% in the previous year.

The region also ranked first, attracting 37.5% ($285m) of the funding on the continent. However, only one other country in the region claimed more than $10m in H1 - Uganda ($19m) - though Tanzania ($9m) narrowly missed the mark. All other markets that did attract funding - Sudan, Ethiopia, and Rwanda - raised less than $5m each.

The second most attractive market in terms of funding was Nigeria, which raised $172 million. Accounting for 23% of the total, Nigeria saw its share bounce back significantly compared to 2023 when it was 14%. This boost helped Nigeria climb from fourth to second place, though it didn't quite reach the top spot it held in 2021 and 2022.

Western Africa as a region was close behind Eastern Africa, raising $270 million, or 35.5% of the total. However, Nigeria's share of this total was relatively low at 64%, even lower than in 2023, when it was 68%. This was the lowest share among the four key regions. Three markets in Western Africa attracted over $10 million in funding: Benin with $50 million (from one deal: Spiro), Ghana with $29 million, and Senegal with $11 million.

Egypt came third, raising $101 million, though its share dropped significantly compared to last year (13% in H1 2024 vs. 22% in 2023). The country attracted 87% of the funding in Northern Africa, a share comparable to last year’s. Only Morocco registered over $10 million in startup investments ($14 million). After a relatively good performance in 2021 and 2022, driven mostly by Yassir in Algeria, activity in both Tunisia and Algeria has been very limited since 2023.

South Africa fell to the fourth spot, raising less than $100 million ($85 million) and accounting for 11% of the continent’s total startup funding in H1 (vs. 21% in 2023). The country continued to secure almost all the funding in the region (98% in H1 2024, up from 96% in 2023), which overall claimed 11.5% of all the funding.

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