ONE PRESSING
QUESTION
DOMINATES
THE CONVERSATION
IN AFRICAN TECH:
IS THE VENTURE
CAPITAL ECOSYSTEM
READY TO REBOUND?

Topline Deals and Volumes

Africa has performed relatively well in terms of VC activity. Despite ongoing challenges including currency devaluations, high interest rates, and persistently high inflation, the continent closed the year with only a modest decrease in fundraising and deals compared to 2023.

• Total funding, including equity and debt, decreased 7% YoY from US$3.5B in 2023 to US$3.2B in 2024. This was a much smaller decline compared to the drop from 2022 to 2023 (-46%).
• Similarly, the number of deals saw a very small 2% YoY decrease, from 547 deals in 2023 to 534 deals in 2024.

Moreover, compared to 2023, both the number of investors that participated in funding rounds and the number of megadeals increased in 2024:

• We saw an increase of 2% in equity investors and even a 71% rise in the number of debt-only investors. This follows a sharp 50% decrease in the number of investors in 2023.
• Megadeals (deals above US$100M) grew in both deal counts (+43% YoY) and deal amounts in 2024 (+57% YoY). We identified 3 debt and 4 equity megadeals in 2024, accounting for a total of US$1.1B. There were 3 debt megadeals in 2023 also but only 1 equity megadeal, the total accounting for US$0.7B.

Focusing on debt:

• The amount of debt raised fell by 17% YoY, from US$1.2B to US$1B. Meanwhile, the number of deals increased by 4%, continuing the upward trend of debt deal counts since 2020.
• The decline in the amount of debt raised could be attributed to several factors, including higher interest rates and a stronger dollar. Indeed, there is now an increasing pressure on local currencies that leads to an increasing cost of borrowing dollar-based debt. This has resulted in higher repayment burdens for African startups that are operating in countries with a fluctuating currency.
• These conditions have made it more expensive for startups to service debt that is denominated in dollars. Meanwhile, most of the available debt continues to be in foreign currency, which adds an additional burden for local startups.

Putting numbers in a global perspective, the African market is doing relatively well:

• Africa VC almost matches the Global Venture market, which ended up at US$314B in 2024, a 3% YoY improvement, driven by a strong Q4 but more importantly thanks to a breakout year for AI, which grew 80% YoY to reach US$101B, representing 32% of Global Venture funding.
• Southeast Asia, following a global decline in VC activity in Asia, experienced a massive decline in funding in 2024. Only US$2.8B was secured across 420 funding rounds. This represents a 59% decrease compared to 2023, with declines across all funding stages.
• In Latin America, VC funding reached US$4.1B thanks to a strong Q4, marking an 11% YoY increase. Fintech still dominates the VC landscape with US$2.4B raised, nearly 59% of the total.

Equity Breakdown

1 - In 2024, we tracked a total of 457 equity funding rounds, which were spread across 443 startups.

This represents a 3% decrease in the overall number of equity deals from the 473 rounds recorded in 2023, indicating a stabilization in funding activity compared to the previous year. It is worth noting that this slight decline follows the significant 32% drop in deal activity between 2022 and 2023. This suggests that the market may be recalibrating in 2024, but not yet showing any immediate return to the fast growth of previous years.

2 - In 2024, total equity funding amounted to US$2.2B, a 2% decrease compared to US$2.3B in 2023. This minor decrease is significantly less than the 54% drop seen in 2023, suggesting once again that the market is stabilizing.

While the overall Venture Capital landscape remains challenging, African tech VC still shows strong resilience.

3 - Starting in Q3 2024, there was an upward trend in funding amounts, driven by a few large deals. At the same time, deal counts show a YoY decline after a few quarters trending upward.

• There were more deals in Q1 2024 (+9% YoY) and Q2 2024 (+8% YoY) compared to 2023, the first time we have observed upward trends in deal counts since Q4 2021. But this trend reversed in Q3 and Q4 2024 by -9% and -20% respectively.
• Total funding was stable YoY, but it was very low in H1 (US$0.8B, -43% compared to 2023) and quite high in H2 at US$1.5B but mostly driven by 3 megadeals that account for US$693M.

The growth in total funding over the last 2 quarters marks a shift from the persistent downward trend that has characterized the market since Q4 2021, suggesting a potential normalization in funding activity.

As a reminder, in 2023, the global funding decline deepened with a further 38% YoY drop, continuing a trend of 8 consecutive quarters of adjustment in the Global Venture asset class. The African VC ecosystem followed the same trend and has faced 8 consecutive quarters of decline since Q3 2022.

In 2024, the venture market in Africa appears to be in a more stable phase, with much slower decline compared to the sharp drops seen in 2022 and 2023. However, the funding amount in H2 was largely driven by 3 megadeals that account for nearly 45% of the total.

In parallel, in terms of deal count, we can see that there were more deals in Q1 2024 (+9% YoY) and Q2 2024 (+8% YoY) compared to 2023. This was the first time that we observed upward trends in deal counts since Q4 2021.

• It is important to highlight that, although the number of deals was higher in both Q1 and Q2 of 2024, these deals collectively accounted for only US$0.8B in funding. Furthermore, in Q4 2024, we witnessed the steepest decline in deal activity since Q2 2023, with the number of deals nearly equal to that of Q4 2020. This signals a significant slowdown in the latter part of last year.
• The second half of the year, with US$1.5B raised, saw higher deal funding amounts compared to the first six months of 2024, helping to catch up to 2023 levels in terms of total funding. Q4 2024 saw the highest funding total since the downturn in Q1 2023 with US$975M, back to Q4 2022 levels.
• In 2024, 4 deals exceeded US$100M (i.e. megadeals), with 3 of them closing in the last quarter of 2024. These high-value deals played a crucial role in narrowing the gap with 2023 funding levels, helping to offset some of the declines in overall deal volume.
• Despite these notable deals, the overall situation has not seen substantial improvement. Indeed, while the number of megadeals in 2024 increased compared to the previous year, the number of total deals – particularly in the second half of 2024 – decreased. 2024 was relatively flat, marked by a resurgence of megadeals and a recovery among Fintech companies that have faced challenges in recent years. While these larger deals and the rebound in Fintech activity have provided some positive momentum, they have not been enough to drive a significant uptick in the broader market.

4 - The highest monthly equity deal counts occurred 3 times in March, May, and September with 48 deals per month (+78%,+31%, and -2% YoY respectively).

The most dynamic month in terms of equity funding was October, with US$540M, surpassing funding in 2023 by a significant 123%.

Looking at the two graphs below, it is notable that the most active month in terms of funding was not the busiest in terms of deal counts. Both October and December were primarily driven by 3 late-stage megadeals, Moniepoint’s US$110M, Tymebank’s US$250M, and Zepz’s US$267M, boosting funding totals significantly without affecting the overall number of deals.

Equity funding in Africa experienced a notable increase as the year progressed, with funding amounts rising from US$106M in January to a peak of US$540M in October, with the lowest point in November at US$75M. In addition 65% of total fundraising was secured in the last 6 months of the year and 44% in the last quarter alone.

In terms of deal activity, there has been an overall stabilization. While the number of deals has decreased across most stages, except for Series A, this decline is quite limited compared to what we reported in 2023.

Funding Amount Per Stage (in US$M)

Deal Count Per Stage

Seed:

1 - The number of deals for Seed-stage companies declined from 337 to 315, a 7% YoY decrease. Seed funding also experienced a slight dip, dropping from US$518M to US$482M (-7% YoY).

2 - Seed-stage companies accounted for 69% of total deal volume while representing 22% of total equity funding. Over the past 4 years, Seed investments have consistently made up approximately 70% of the market activity.

This suggests that the market has attained a certain level of maturity, with Seed-stage deals maintaining a consistent share regardless of fluctuations in the broader market. Such stability is an encouraging indicator of a healthy and resilient ecosystem.

3 - In terms of ticket sizes, the Seed stage is the only one showing an upward trend in 2024, with an increase of 26% compared to 2023, reaching average ticket sizes of US$1.6M. This signals a positive shift for early-stage startups.

4 - One possible explanation for this growing ticket size is the intensifying competition among investors, particularly as more local early-stage funds enter the market. The increased presence of regional investors may be driving up funding amounts, as these funds look to secure high-potential startups early on. Additionally, local funds may have a better understanding of the specific market needs and opportunities, allowing them to take a more active role in early-stage investments. This dynamic could be contributing to a more favorable funding environment for Seed-stage companies, despite the overall market slowdown.

Series A:

1 - In 2024, the number of deals increased from 86 to 97 for Series A companies (+13% YoY). Series A investments are the only stage to see an increase in the number of deals.

2 - Meanwhile, the average ticket size went from US$7M in 2023 to US$5.8M in 2024 (-18% YoY). The average ticket size for Series A deals has been on a downward trend since 2022 and continued to decrease in 2024 by 18%.

3 - Series A total funding went from US$547M in 2023 to US$503M in 2024 (-8% YoY).

Series B:

1 - The number of deals decreased from 36 to 31 for Series B companies (-14% YoY).

2 - For Series B deals, the average ticket size went from US$19M in 2023 to US$13.8M in 2024 (-27% YoY).

3 - Series B total funding dropped from US$642M to US$413M (-36% YoY). Series B companies are experiencing the highest declines both in equity funding as well as deal counts.

These trends in Series A and B may reflect overall a tougher VC market adjusting for the decline in tech company valuations. This leads to multiple effects:

• A decrease in Series A and B tickets, in line with a similar decline in 2023, reflecting a higher cost of capital. The lower valuations not only make it less likely for companies to come to market (if they can avoid it) but also leads to smaller ticket sizes to keep dilution sustainable.
• A reduced pipeline at Series A and B is also pushing many investors upstream to Seed-stage companies. This adds to the increasing competition in this stage, keeping the valuation stable and increasing ticket sizes for Seed and Seed+ companies.
• Due to ongoing economic and political uncertainties since 2023, including inflation, devaluation of currencies, and presidential elections, it also makes sense that investors want to enter the capital of companies at early stages, at lower valuations, or make more significant returns when these deals become more competitive in the future.

Growth:

1 - The number of deals remained stable with 14 deals for Growth-stage companies, accounting for 3% of the total deal volume.

2 - In 2024, the average ticket size for Growth investments increased by 15%, reaching US$39.8M.

3 - Growth-stage funding surged from US$573M to US$840M (+47% YoY). This is the first time since 2021 that the Growth-stage has risen in both funding amount and as a percentage of overall equity funding. Growth-stage investments now account for 38% of total funding, compared to 25% in 2023 and 30% in 2022.

Bracket Analysis:

The investment amounts and deal count per bracket confirm the trends we already identified above. We saw:

• A 9% increase in deals between US$200K and US$1M.
• A resurgence of deals above US$50M (+25%). This aligns with the increase in megadeals confirming that appetite for large tickets is coming back.
• Moderate declines in venture brackets between US$1M and US$20M, but they were nearly stable compared to 2023.
• A big drop in the US$20M to US$50M bracket, down 35% YoY. This could indicate a challenging middle ground in terms of deal size, where it may be too large for venture investors but not quite substantial enough for pure growth investors.

Breakdown by Number of Deals

Breakdown by Funding Amount (in US$M)

Conversion Analysis:

Annual conversion rates provide insight into how African tech startups convert from Seed to Series B but also the impact of the rallies and crises on this journey.

In this analysis we look at two conversion definitions:

• a strict conversion from one stage to the next (e.g. Seed to Series A).
• a loose conversion to a new round, whether it’s an extension (e.g. Seed to Seed extension), bridge, or actual upgrade to the next stage. A loose conversion reflects more on a startup’s ability to attract more capital, even if it did not achieve the next milestone.

Seed to Series A:

• From Seed to Series A, we can see that the strict conversion rate peaked at 35% for the 2019 cohort which benefited from the favorable market conditions of 2021-2022. After 8 quarters (the typical timeframe to reach a Series A), roughly 20% of the 2019 and 2020 cohorts had achieved conversion
• We see a steep decline in this 8-quarter conversion rate for the subsequent cohorts, ending with barely 5% conversion for the 2023 cohort. This clearly indicates what the downturn means for startups in Africa working toward Series A: where 1 in 5 used to cross the line in 2 years, it’s now only 1 in 20.

Taking a look at the looser conversions, which include «Seed extensions» we can see a more nuanced view:

• Despite this decline in direct Seed-to-Series A conversions, many startups have raised additional capital in the form of round extensions and bridges rather than progressing to a full Series A round. At the 8-quarter mark, nearly 50% of Seed-stage companies in 2019 and 20% of companies in 2023 had secured at least one additional round of funding. This suggests a strong level of resilience within the African startup ecosystem, as these companies have not disappeared despite the challenging funding environment. Instead, they have found alternative paths to secure the capital they need to survive and develop. Both startups and investors have been more flexible in terms of funding approach despite the ongoing economic challenges.

Series A to Series B :

• Strict conversion rates from Series A to Series B peaked at an impressive 41% with the 2019 cohort, even higher than the Seed-to-Series A conversion rates. At the 8-quarter mark the 2019 cohort registered 26% conversion and the 2020 cohort reached 20%. The 2021 cohort still registered a rate as high as 17% after 8 quarters. This shows the crisis hit the conversion rate of Series A startups slower that it hit Seed startups.
• In contrast, for the 2022 and 2023 cohorts, the conversion rate dropped in 2024 to 8% and 5% respectively, showing more struggles for startups to raise funds at Series B.
  A quarter of the 2019 cohort achieved success after 2 years while 1 in 20 among the newer cohorts have converted at the same rate.
  We also note that conversion rates are generally higher for Series A than for Seed companies, which are higher risk.

For loose conversions, there is a similar trajectory for the cohorts of 2019, 2020, and 2021 versus the two most recent years.

• Roughly 40% of Series A startups from the 2019, 2020, and 2021 cohorts raised subsequent capital within 2 years, with the 2019 cohort peaking at 60% within 3 years.
• In the 2022 and 2023 cohorts, we see the fraction that has raised more capital reach 20% before it hits a plateau. While only 5% of 2023 Series A startups reached Series B, 3 times more (15%) achieved some form of bridge or extension.

This is a very clear indication of how companies and investors adapted strategies to secure capital while the standard trajectories have been disrupted.

1 - Nigeria has regained its position as the top VC investment destination in Africa in 2024, leading in both equity funding and deal counts.

• With an 11% increase in equity funding, totaling US$520M (+11% YoY), Nigeria secured the top position, boosted by a few high-value deals including Moniepoint’s US$110M and Moove Africa’s US$100M funding rounds. It’s worth noting that Nigeria would still have earned its top spot in VC investment even without these two megadeals. However, the number of deals in Nigeria decreased by 7% compared to 2023, with 103 deals completed.
• South Africa raised US$459M in equity last year, a 16% decrease compared to 2023 for a total of 67 deals, down 19% compared to 2023.
  South Africa was home to one megadeal with Tymebank’s US$250M Series D funding round, saving this market from a drop of 69% compared to 2023
• Egypt raised US$297M in equity funding in 2024, reflecting a 31% decrease compared to the previous year. This decline in funding was accompanied by a significant 48% YoY increase in the number of deals, which rose to 89 in total, making Egypt the second most prolific ecosystem in 2024.
• Kenya has now fallen to fourth position, raising a total of US$221M in equity funding in 2024. This represents the largest YoY decline among the top 4 countries, with a 34% drop in funding. Additionally, the number of deals completed in Kenya decreased by 12%, with only 59 deals in 2024.
• Beyond the top 4 countries, Ghana, Morocco, and Tanzania are the only other countries to surpass the US$50M equity funding threshold last year. For reference, Ghana and Morocco were the only 2 such markets in 2023 while there were 5 of them in 2022.
  Ghana raised US$102M, reflecting a 36% YoY increase. Ghana has raised more than US$50M every year since 2019 and even raised more than US$100M in 4 of the last 6 years.
  Morocco raised US$82M, marking an 11% decline compared to the previous year but it is still the second year it has surpassed US$50M.
  Tanzania saw a remarkable surge, raising US$52M, a staggering 1150% increase compared to 2023. This extraordinary growth is largely attributed to NALA’s US$40M funding round, which significantly boosted the country’s overall total.

2 - The top 4 countries — Nigeria, Egypt, Kenya, and South Africa — remain the dominant players in the market, collectively accounting for 67% of the total equity funding value in 2024, down from 79% in 2023 and 72% in 2022.

Despite this drop in market share, these nations still represent a substantial portion of funding activity. In terms of deal volume, the top 4 countries maintained their strong position, accounting for 70% of the total number of equity deals, a small increase from their 68% share in 2023.

The concentration in these 4 markets remains evident, even though there is some sign of diversification.

Of the 14 growth deals, 10 occurred in the top 4 markets. Additionally, these markets accounted for 70% of Seed deals, 56% of Series A deals, and 85% of Series B deals.

3 - With the exception of Nigeria, all of the top 4 markets experienced a decline in funding in 2024 compared to 2023. However, in terms of deal number, Egypt stands out with a 48% increase in deal count, reflecting a renewed vibrancy in its VC ecosystem.

4 - Since 2020, there has been a remarkable power shift among the top 4, from South Africa and Kenya towards Nigeria and Egypt. The shift is especially visible in early stages, Seed+ and Series A, where almost half of the total deals and volume closed in Africa over the last 5 years went to Nigeria and Egypt alone (split almost evenly between them).

Taking a look at the percentage of total deal count and volumes taken up by each country, it’s clear that we went from an ecosystem that was dominated by South Africa and Kenya, with Nigeria and Egypt solid followers, to the opposite in more recent years. This is quite visible in the earlier stages, as illustrated in the graphs below. This is a durable shift in the ecosystem that is likely going to continue in the near future.

Looking at the cumulative data for 2020-2024, Nigeria and Egypt have been home to 47% of all Seed+ deals that closed on the continent (880 deals) with the exact same share of the total Seed+ funding amount, 47% at US$1.31B. At the same time, the 2 countries have also attracted 40% of all Series A deals in Africa over that period (193 deals) and 43% of the Series A funding volume (US$1.67B). Kenya is losing out among the big 4 over that period.

Africa Tech VC - Seed deals count per country

Africa Tech VC - Seed funding amount per country (in US$M)

Africa Tech VC - Series A deals count per country

Africa Tech VC - Series A funding amount per country (in US$M)

5 - The overall geographic reach of VC funding contracted slightly with 24 countries involved (vs. 27 in 2023).

Over the past year, the geographical reach of VC funding contracted slightly, with equity deals now spanning 24 countries instead of 27 in 2023. This adjustment brings the total number of countries that have seen equity tech deals above US$200K in the last 5 years to 38.

6 - The Rest of Africa (ROA) — i.e. excluding the top 4 markets and Panafrican deals — is slightly below 2023 numbers with 131 funding rounds (-6% YoY) and US$322M (-31% YoY).

In terms of overall equity distribution across the continent, the ROA region captures 14% of the total equity funding in Africa, which is a slight decrease from 21% the previous year. While this decline reflects a minor shift in investment flows, the percentage remains relatively stable compared to the levels observed in 2023 and 2022. This suggests that, despite the fluctuations, there is a stabilizing trend in deal activity across the region. Investors continue to recognize the potential of emerging markets outside the more prominent hubs, indicating sustained interest and a strategic focus on diversification within Africa’s growing economy.

7 - Francophone countries accounted for 55% of ROA equity funding volume vs. 68% in 2023.

• Francophone African countries now represent 55% of total equity funding volume in the broader ROA group, confirming their attractiveness outside of the top 4. However, this still marks a significant decline from their 68% funding share in 2023.
  
  • Equity funding in Francophone African countries dropped significantly in 2024, falling 31% YoY to US$229M. This was accompanied by a 14% decline in deal volume, with 80 deals closed.
  • Despite this regional slowdown, some countries stood out: Morocco in particular (US$82M), but also Senegal (US$36M), Côte d’Ivoire (US$30M), and Rwanda (US$26M) ranked among the top 10, highlighting their continued appeal to investors.
• 61% of all deals outside the top 4 (flat compared to 2023) are now happening in Francophone countries.
• 11 of the 20 countries outside the top 4 that saw a transaction in 2024 are also Francophone.
• Francophone North Africa faced a decline in total funding in 2024, with a 12% drop, which brought the region’s total investment to US$111M. This represents 48% of Francophone Africa equity funding. Despite this downturn, there was a notable increase in the volume of deals, with the number of transactions rising by 15%, reaching a total of 38 deals.
• Among Francophone Africa, Morocco stood out as the dominant player, becoming 2024’s most prolific destination after the top 4 in terms of deal activity. Morocco also accounts for 36% of the total funding raised across Francophone Africa and even represents a 75% share of the funding volume across Francophone North Africa. Morocco continues to strengthen its position as a key investment hub within the region, capturing the majority of deals.

Case Study

A ZOOM-IN ON EGYPT

Recent Macroeconomic Challenges in Egypt and Impact on VC Investments

Egypt’s economy has faced considerable challenges over the past 18 months, driven by both internal and external factors. The Egyptian pound has experienced substantial depreciation, losing more than 40% of its value as the country grappled with foreign currency shortages and mounting external debt obligations. These pressures were compounded by the global impact of the Russia-Ukraine conflict, which disrupted critical sources of revenue like tourism and trade, and caused import costs to soar due to rising global commodity prices. Geopolitical tensions in the region, such as the Gaza conflict, have added to Egypt’s economic strain, impacting security, refugee inflows, and regional trade. High inflation, reaching record levels above 30%, has further burdened households, reducing purchasing power and dampening economic activity. In response, the government has raised interest rates aggressively and devalued the currency to stabilize the economy.

This impacted VC investment in Egypt significantly: from mid-2022 to March 2024, investments decreased both in amount and number of deals, as currency devaluation created significant price uncertainty.

But 2024 has shown early signs of economic recovery that has positively impacted VC investment in Egypt.

The country has attracted significant foreign investments, demonstrating confidence in its long-term potential. Projects like the US$150B Ras El-Hikma development and Saudi Arabia’s US$5B commitment to the Egyptian economy highlight sustained interest from regional investors. The government’s structural reforms, including privatizing stakes in state-owned companies and embracing a flexible exchange rate, aim to enhance fiscal stability and attract private sector participation. The International Monetary Fund’s US$8B loan program has also provided Egypt with financial breathing room while encouraging further reforms to strengthen economic resilience. Collectively, these efforts position Egypt to recover and lay the foundation for sustainable, diversified growth. Fitch notation agency raised Egypt’s rating to B at the end of 2024

This has led to a complete turnaround in VC investment: in 2024, Egypt was a close second top destination for equity deals with a total of 89 transactions representing 48% YoY growth, the strongest rebound among the top 10 countries.

MNT-Halan’s US$157M large round (mix of debt and equity) announced in August 2024 was a strong proof point of renewed investor confidence in the market.

Egypt played a critical role in the continent’s 2024 early-stage funding landscape. It was the number 1 destination for Series A, with both the largest number of deals, 21 (7% of the total) and the largest funding volume US$82M (16% of the total). Egypt also led the narrative at Seed+ stage with the largest funding volume — US$118M (24% of the total) through 61 deals (13% of the total, #2 after Nigeria, which saw 75 Seed+ deals).

Interestingly, while it is now obvious that Egypt is one of the leading VC destinations in Africa, a decade ago, in 2016, that was not the case. Egypt was 3 to 5x smaller than South Africa, Nigeria, or Kenya in terms of the number of deals or volume invested.

With the exception of 2023, when the country was affected by significant macroeconomic headwinds and currency devaluations, Egypt has consistently been in the top 2 most prolific markets in terms of deal activity over the last 5 years, confirming a vibrant ecosystem and growing appetite from investors.

One sector that has remained resilient among macroeconomic headwinds is real estate, and the startup ecosystem is well positioned to benefit from it.

The real estate market in Egypt has been one of the country’s economic bright spots, attracting substantial domestic and foreign investment. This boom is largely supported by demographic demand, increased urbanization, and real estate’s role as a hedge against economic uncertainty.

However, the real estate market is quite fragmented and inefficient, leaving it ripe for digital disruption by startups like Nawy. Nawy is the leading Proptech startup in Egypt, focused on digitizing and simplifying real estate purchases and investments. The company’s end-to-end platform provides a seamless experience for prospective buyers, sellers, and investors in the real estate space. By integrating advanced tools like AI-driven recommendations and virtual tours, its innovative approach has positioned the company as a leader, reaching EGP100B (US$2B) in sales volume, with 10,000 properties sold in less than 3 years. Nawy’s success underscores the broader dynamism of the sector and its potential to contribute significantly to the country’s economic recovery and modernization. Beside its listing product, Nawy has launched several exciting products such as access to mortgage, refurbishing, and renovating, and partial ownership.

1 - In 2024, the sectoral trends within Africa’s tech ecosystem are defined by a renewed dominance of Fintech.

• In terms of deal counts, Fintech continues to hold the top position, making up 29% of all deals with 131 equity transactions – up 16% from 2023.
• In terms of funding, Fintech grew 59% YoY, securing US$1.3B – 60% of the total equity funding (vs. 37% in 2023).

• Fintech stands out as not only a resilient but also a strongly rebounding sector. It has a very different trajectory to the overall market as shown in the graph below: it is clearly growing.
  
  • In terms of deal count, the Fintech sector increased by 16%. Meanwhile, all other sectors experienced a 10% decrease overall.
  • In terms of deal funding, the Fintech sector saw a 59% increase in 2024 compared to 2023 while the other sectors experienced a 38% decrease overall.
• The concentration of total funding in Fintech is becoming increasingly significant, with the sector now attracting more than half of the overall equity funding.
• The average ticket size in Fintech across all stages is the main driver of the overall average ticket sizes. This remains true even without the megadeals, as Fintech ticket sizes continue to grow at every stage.

• This dominance of Fintech has been a staple of the African Tech sector since the emergence of this investment market. Whether measured by deal count, total funding, average ticket size, megadeals, unicorns, or exits, Fintech is always far ahead. Interestingly, this dominance has been reinforced by all major movements in the ecosystem:
  
  • The 2017-2019 uptick in the ecosystem saw Fintech deals prevail as these companies offered easy-to-understand models and trajectories to mostly non-specialized investors.
  • The 2020-2021 bubble also benefited Fintech as its companies were the most likely to absorb very large tickets thanks to high valuations and capital-intensive hypergrowth.
  • The 2022-2023 downturn, where investors focused on proven business models with a clear path to profitability, once again put Fintech ahead as companies in this sector traded growth for healthy economics and long-term prospects.

2 - Cleantech is not (yet) on a high-growth trajectory like Fintech. Cleantech saw minor growth in deal activity (+6%), but it lost major ground in investment amounts (-35% to US$192M in 2024).

• Cleantech stands out as the fourth most active sector and is still growing in deal count, with 37 deals (+6% YoY). This means there have been more deals closed in Cleantech than in any other sector, except for Fintech, confirming the dynamic nature of the sector and its attractiveness for investors.
• In terms of investment, despite a steep drop from 2023 (-35% YoY), Cleantech has risen to second place, securing a total of US$192M in equity funding. Cleantech companies, which went from barely 1% of the funding in 2020 to 17.5% in 2022, are still a significant segment, claiming 9% of 2024’s equity funding.
• Cleantech, Climatetech, and renewable energy startups are some of the main beneficiaries of the global shift in capital allocation towards sustainable investing and impact. Africa is not an exception and is also (unfortunately) home to some of the largest challenges faced on the planet in terms of energy demand, water demand, mobility, etc. This makes it a massive opportunity, with more and more funds and corporate investors dedicating deep capital to these sectors. Africa is paving innovation and building compelling propositions for all emerging markets globally.

3 - E/M/S-Commerce and Enterprise, consistently among the top 3 sectors, have taken a significant collective hit in deal count (-18%) and funding (-34%), reflecting all sectors’ activity except Fintech.

• E/M/S-Commerce and Enterprise remain the second and third most active sectors in deal count, with 62 deals (-22% YoY) and 55 deals (-14% YoY) respectively.
• E/M/S-Commerce ranks third, with almost only half of the 2023 amount, raising US$157M (-47% YoY) in 2024, accounting for 9% of the total. Enterprise takes the fourth position in funding with US$154M (-12% YoY) of equity funding in 2024.
• Examining the equity funding amounts and deal counts across other sectors from 2019 to 2024, we can see that E/M/S- Commerce and Enterprise have maintained a consistent share of both total equity funding and deal counts over the years.

4 - Mobility and Healthtech, the only other sectors to raise more than US$50M, saw the biggest YoY changes, with Healthtech dropping in deal counts (-40%) and in amounts (-70%) while Mobility gained 60%.

• In 2024, Healthtech funding dropped to US$65M, a steep decline (-70% YoY) from US$212M in 2023. Deal count dropped to 31 deals from 52 in 2023 (-40% YoY).
  This is the end of a trend: Healthtech, on the rise in 2019, saw significant increases in both funding amounts and deal counts driven by the COVID-19 pandemic between 2020 and 2023. Overall, between 2019 and 2024, around US$1B was invested in Healthtech startups.
• Mobility is another sector that saw large movement in 2024, with total funding growing 60% to US$76.4M (3% of the total equity funding) while deal counts dipped from 17 to 13 (-24% YoY).
  The Mobility sector, which has raised around US$600M since 2019, rebounded in 2024 but the activity was still generally low (13 deals). Just 2 deals accounted for half of the 2024 haul.

5 - Edtech, Agritech, Logistics, Insurtech, and Hardware collectively represented 7% of the total funding and showed very volatile trajectories.

• Edtech saw the most growth in activity, with 31 deals closed in 2024 (+72% YoY), equating to 27% growth in funding to US$34.6M.
  However, this is still only 12% of the US$291M that was invested in Edtech in 2021. It seems investors are still not able to tap into the potential opportunity to use technology to provide access to quality education for a fast-growing youth.
• Agritech activity follows closely with 30 deals (+3% YoY) in 2024. Agritech companies raised US$89M, far below the 2023 amount (-38% YoY), representing only 4% of total equity funding.
• Despite the increase in Logistictech activity (+24% to 26 deals), the total funding raised in the sector remained low at US$41M (-15% YoY). This is also only 11% of the US$388M this sector raised at its height in 2021.

6 - Finally, looking at the sector breakdown within specific markets, all of them are driven by the Fintech sector, with the glaring exception of Kenya.

• Fintech represented 72% of total equity funding in Nigeria. In 2023, Nigeria was one of the most diversified VC markets across Africa. However, in 2024, we observed a decline in sectoral diversification, with Fintech leading the local funding landscape. This reduction in diversification was partly driven by Moove Africa and Moniepoint’s large Fintech funding rounds. Without these 2 megadeals, Fintech represented 31% of total funding in Nigeria, close to 2023’s 37%.
• In Egypt, the VC market was also driven by Fintech (60% of total equity funding) and E/M/S-Commerce (12% of total equity funding). This represents a slightly more balanced market compared to the other top countries, even if Fintech companies continue to capture the largest share of funding and deals.
• In South Africa, Fintech accounted for 70% of total funding. The diversification in the equity funding mix for South Africa deteriorated in 2024 compared to 2023. 2024 total funding was largely driven by Tymebank’s US$250M megadeal.
• In Kenya, Fintech companies made up just 13% of total equity funding. Cleantech startups continued to dominate Kenya’s total equity funding, accounting for 46%. E/M/S-Commerce, which was the leading sector in Kenya in 2023, represented only 5% of total equity funding in 2024, while Agritech accounted for 15%.

1 - In 2024, only 83 startups with female founders raised equity, representing 18% of total deal counts. These startups raised a total of US$159M, only 7% of overall equity funding.

This represents a decline compared to 2023’s figures, which despite being modest, were still higher. This decrease highlights ongoing challenges in securing funding for female founders. In 2024, male founders raised on average 13.2x the amount of VC funding compared to their female counterparts.

2 - Once again, Nigeria claimed the highest number of deals (20) led by female-founded startups.

South Africa and Kenya still featured in the list of the top 10 countries with the highest number of deals involving female founders. However, only 6% of deals in Egypt were closed by female founders.

In 2024, Ghana, Rwanda, Kenya, and Cameroon led the way in terms of the percentage of female-founded startups closing deals: 41% in Ghana, 40% in Rwanda, 34% in Kenya, and 33% in Cameroon.

Countries like Senegal and Côte d’Ivoire, which were in the top 10 in 2023, saw no female founders raising capital in 2024. Furthermore, except Ghana and Rwanda, all other countries have seen a decrease in the percentage of female-founded startups achieving deals.

3 - In 2024, only one female-led startup secured Growth-stage funding.

The majority of female-led startups raised Seed-stage funding, accounting for 77% of total deals, down from 81% in 2023. Series A funding made up 18% of total deals, up from 14% the previous year.

4 - In 2024, Agritech was the only sector to achieve gender parity in terms of funding. Female-founded companies led 40% of Agritech deals, up from 24% in 2023, and raised 51% of the total funding in the sector, compared to just 15% in 2024.

Fintech remains one of the least gender-balanced sectors, despite continuing to be the top sector in terms of funding raised.

5 - E/M/S-Commerce, Agritech, and Fintech are the top three sectors with the highest percentage of deals closed by female-led startups.

In terms of deal counts, E/M/S-Commerce is leading with 23% of the total deal count (19 deals) led by female founders.

In terms of funding, Agritech takes the lead with 28% of the total funding amount led by female founders, amounting to US$45M.

1 - 583 unique investors participated in rounds within the African Tech ecosystem in 2024. This represents an increase of 2% in investor participation. This is a slight contrast to the previous year’s trend which saw the investor count drop 50% from 1,149 in 2022.

2 - The number of investors participating in more than 2 deals or in more than 5 deals remained stable compared to 2023, with 0% and -2% YoY respectively. The number of investors that participated in more than 15 deals surged in 2024 to 3 investors vs. only 1 investor in 2023. This stability is a positive indicator, with investors focusing on new opportunities despite challenges and more local funding at work. However, the current number of investors remains well below that of 2022. Some have yet to return since the crisis.

3 - The top 4 markets saw the highest number of investors:

• Egypt saw a 38% increase in the number of investors (121) compared to 2023, making it the only country in Africa with a significant rise. This confirms the growing attractiveness of Egypt as a key destination for investment.
• In Nigeria, 173 investors participated in equity and debt funding rounds in 2024. This represents a 6% decrease compared to 2023.
• In Kenya, 134 investors participated in equity and debt funding rounds in 2024. This represents a modest 3% decrease compared to the previous year.
• The most significant decrease among the top 4 countries was in South Africa, where 118 investors took part in funding rounds in 2024 (-20% YoY).

In Francophone Africa overall, we experienced a 9% increase in the number of investors. Plus, investors are becoming more active in countries like Morocco (+56%), Tunisia (+56%), and Senegal (+32%).

4 - When we look at the participation of investors by sector, upward trends are observed in Fintech, Cleantech, Edtech, and Connectivity.

• In Cleantech, the number of investors involved in debt deals surged by 62% compared to 2023.
• In Fintech, there was a 37% increase in the number of investors involved in deals compared to 2023.
• In Edtech, there was a 34% increase in the number of investors involved in deals compared to 2023.

5 - Looking at participation by stage, the most significant decline was observed in Series B companies (-35% YoY).

On the other hand, Series A and Growth companies experienced positive shifts. The number of investors participating in funding rounds has increased by 32% and 19% respectively.

6 - Investors have been much more active at Seed+ stage in 2024, while their involvement at Venture stage has decreased compared to previous years.

• In 2024, at Seed+ stage, 25 investors closed 5 deals or more above US$200K. This is a significant increase from the 8 investors that did 5 deals or more above US$200K in 2023.
  Looking at the most active ones with 6 deals or more, there are 16 investors, listed below in alphabetical order: Axian, BFA Catalyst Fund, Chui Ventures, DFS Labs, Edventures, Ingressive Capital, Kaleo Ventures, Launch Africa, Musha Ventures, Microtraction, Plus Venture Capital, Renew Capital, Techstars, Ventures Platform, Y Combinator, and 54 Collective.
• At Venture stage, including Series A and Series B, the 10 most active investors that closed 4 deals or more are, in alphabetical order:
  Acumen, Africinvest, Axian, FMO, Norrsken22, Partech Africa, Renew Capital, Sawari Ventures, Ventures Platform, and Visa.

Debt Breakdown

Within a context of macroeconomic challenges and currency volatility, exacerbated by the unprecedented tech downturn, debt has become increasingly important in the share of capital raised. It’s been especially important in the last 2 years for the most mature companies to source non-dilutive capital and finance their growth.

The leading and most advanced sectors for debt fundraising are – without contest – Fintech and Cleantech. Fintech matches lenders’ strategic appetite for later-stage companies with healthy economics, while Cleantech fits the appetite for impact-driven investment from DFIs who drive most of the debt market. A few companies match both.

However, while access to debt capital in Africa is growing, it is still facing significant constraints. Most of the available debt remained labelled in USD with high interest rates. As most of the startups still have most of their revenues and liabilities in local currencies, this has created a substantial increase in the number of defaults in the ecosystem.

While the rise of debt is a strong signal of the maturation of our markets, a comprehensive transformation of the offer is yet to happen to meet the unique requirements of African startups.

1 - With US$1.0B (-17% YoY) in total debt funding, debt remained a key source of financing for the African VC ecosystem as it accounted for 31% of the capital raised.

• In 2024, the total debt raised was still just above US$1B, meaning that debt remained a significant source of capital for African startups. Despite a 17% drop in 2024, the total decrease in debt since 2022 is only -35% compared to -54% for equity capital.
• The number of debt deals was slightly higher in 2024, with a total of 77 deals. Again here we note a difference in trajectory vs. equity capital: debt deal count has still been growing every year since its emergence.

2 - Debt funding remained concentrated in the top 4 countries in 2024.

• Kenya led the way, raising a total of US$382M in 2024 (-1% YoY) through 24 deals (+33% YoY). This accounted for 38% of the total debt funding and 31% of total transactions.
• Egypt came second with US$142M of debt financing (-8% YoY) in 2024, through 7 deals.
• South Africa followed with US$132M of debt financing (-15% YoY), through 7 deals.
• Ghana also stood out as a top debt destination with US$118M of debt (+36% YoY) raised in 2024 through 9 deals (+50% YoY) – this represented approximately 12% of total debt funding.
• In Nigeria, only US$69M of debt (-53% YoY) was raised by 11 startups (-42% YoY).

3 - Similarly to 2023, debt funding in 2024 was mainly captured by Cleantech companies (40% of total funding and 21% of total deal counts) and Fintech companies (34% of total funding and 35% of total deal counts).

These sectors are gaining in maturity and have developed more sophisticated and resilient operations over time. As a result, Fintech and Cleantech companies are unlocking access to a broader range of funding options. Debt providers are aligning with their specific growth drivers and risk profiles.

4 - Female-led startups still accounted for only a small share of the total debt funding, with 10% of the total debt deal count and less than 1% of total debt funding.

5 - In 2024, the number of debt investors increased to 70 active investors vs. 41 in 2023, a solid 71% YoY growth.

The most active investors with 3 deals or more are listed below in alphabetical order:
AAIC, BII, DEG, DFC, IFC, and Proparco.

Methodology & Disclosure

Scope: We report on fundraising for African tech and digital startups, specifically Venture Capital equity and debt deals above US$200K.

1 - Methodology and disclosures:

We include only equity or debt rounds that are US$200K or above. This means our focus is on Late-Seed (Seed+) to Growth-stage equity and debt rounds.

Example: Mozambique Roscas’ US$100K Seed round was not counted.

2 - Geographic focus:

Our coverage is limited to African startups, defined as those whose primary market (by operations and / or revenues) is in Africa. Companies that expand globally are still considered African if their primary market remains on the continent.

Example: ELFI’s US$5M Series A round, despite its Seychelles HQ, was not counted as its primary business is not in Africa.

3 - Exclusions:

We exclude all non-equity and non-debt financial instruments: grants, awards, prizes, Initial Coin Offerings (ICOs), non-equity / technical assistance, post-IPO activities, private investment in public equity (PIPE), securitization, and all M&A deals.

Examples:

• South African company DocFox’s US$75M acquisition was not counted.
• Nigerian company Wella Health’ s US$300K grant was not counted.
• SWVL’s US$4.7M private placement was not counted.

Our approach is designed to capture a substantial portion of investment activities that influence the market, with a particular emphasis on the African tech and VC scene. However, despite our best efforts, the report may not capture every aspect of the investment activities within our defined scope. Due to the confidential nature of some deals, there could be instances of undisclosed transactions or partial information on certain deals. Our primary objective is to offer a realistic picture of the African tech VC ecosystem. This analysis draws upon publicly available data and insights from our network.

We extend our heartfelt thanks to everyone who responded to our data gathering requests, as their contributions have been invaluable in shaping our understanding.

Data sources and Transparency

Our data collection process categorizes deals into three disclosure levels:

• Fully disclosed: Deals announced publicly through press releases or platforms like CrunchBase, Tracxn, PitchBook, etc., with details on series, round size, and investors.
• Partially disclosed: Deals with public announcements but lacking details like round size. We supplement this data by engaging with our network of founders and investors.
• Confidential: Deals not disclosed publicly. We gather this data through direct engagements under confidentiality agreements.

The below will provide aggregate metadata on the level of disclosure in our database entries for equity deals, debt deals, and both debt and equity combined.

All deals

Looking at all equity and debt deals, together, fully disclosed and partially disclosed deals account for 86% of the total deal count (461 of 534 transactions), translating into US$3B out of US$3.2B, or 93% of total funding.