Kenya has solidified its position as the leading African country in startup funding, raising an impressive $437 million (Sh56.5 billion), which accounts for 31% of the total funds raised on the continent in 2024. This remarkable growth underscores the strong confidence that global investors have in Kenya’s strategic location, fast internet speeds, and favorable business policies.
Kenya’s dynamic startup ecosystem continues to outperform other African markets, positioning it ahead of Egypt, which raised $373 million (Sh48.3 billion) during the same period. Together, Kenya and Egypt represent 58% of Africa’s total startup investments, marking a record high share of funding for both countries since 2019. This trend is a testament to the growing interest and potential of these markets in the global startup landscape.
Interestingly, Nigeria, once a powerhouse in startup funding, has seen a decline in its market share. With $218 million (Sh28.2 billion) raised in 2024, Nigeria’s 15% share of the total is a decrease from its historical dominance, where it averaged 35% between 2019 and 2022. This shift indicates a significant redistribution of investment interest across the continent.
South Africa, another historical leader in startup funding, has recorded its lowest figures since 2019. With just $125 million (Sh17.2 billion) raised, South Africa accounts for only 9% of the total funds raised so far in 2024, reflecting a significant downturn in investor interest compared to previous years.
Outside of these top markets, there has been notable growth across other African countries such as Tanzania, Ghana, Morocco, Uganda, and Rwanda. Together, they account for 18% of the total startup funding. Companies like Spiro in Benin, Nala in Tanzania, and Fido in Ghana are receiving significant investments, showing signs of maturity and growth.
As Kenya leads the charge in the African startup scene, the continent as a whole is experiencing a shift in investor preferences, with a wider distribution of funds across markets that show strong growth potential. This trend highlights the exciting future for startups across Africa and the continued evolution of the tech and innovation ecosystem.
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