As 2024 nears an ending, Kenya and Egypt have emerged as the dominant players in African start-up funding, claiming a combined 58% of all the funding raised on the continent so far.
With Kenya securing $437 million (31%) and Egypt $373 million (27%), both countries have achieved their highest-ever share of continental funding since 2019.
This milestone holds true whether we compare full-year figures or just the first three quarters (Q1-Q3) of any given year – according to thebigdeal.
In stark contrast, Nigeria and South Africa traditionally among the ‘Big Four’ African markets for start-up funding are seeing a dip in performance.
Nigeria raised $218 million (15%) in 2024, showing little improvement from last year’s 14% share. South Africa, with just $125 million raised so far, is witnessing its worst performance since 2019, holding only 9% of the total funding, well below its average share of 18% recorded between 2020 and 2023.
Q3 2024 Start-up Funding
In Q3 of 2024 alone, Egypt led the Sub-Saharan Africa region with an impressive $272 million raised, accounting for 43% of the total funding during this period.
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Kenya followed closely, raising $201 million, which represented 32% of the quarter’s total. Together, these two markets captured three-quarters of the total funding raised in Sub-Saharan Africa in Q3.
However, the broader African start-up ecosystem beyond these two giants has seen more subdued activity.
Only four other markets raised over $10 million during Q3: Tanzania ($43 million), South Africa ($40 million), Ghana ($35 million), and Nigeria ($26 million).
Additionally, ten more countries managed to attract at least one $100,000+ deal, while 38 African markets reported no start-up funding activity during the quarter.
Nigeria’s declining share of start-up funding follows a dramatic shift that began in 2023. From 2019 to 2022, Nigeria held an impressive 35% share of African start-up funding. The decline this year suggests a major rebalancing of investment patterns across the continent.
Despite the underperformance of some key markets, there is growth potential in other regions.
Will Kenya and Egypt Hold Steady?
Tanzania, Ghana, and Benin have shown promising signs, each attracting significant investments driven by large deals.
In Benin, Spiro’s $50 million funding represents the entirety of the country’s contribution to 2024’s funding tally.
Similarly, Tanzania’s Nala raised $40 million out of the country’s $53 million total, while Ghana’s Fido accounted for $30 million of its $64 million raised so far.
Looking beyond the top markets, 23 countries across the continent have recorded at least one $100,000+ deal since the start of 2024.
However, only five—Tanzania, Ghana, Morocco, Uganda, and Rwanda have secured ten or more such deals, signaling both challenges and opportunities for a more balanced distribution of start-up funding across Africa.
As the year continues, it will be interesting to observe whether the dominance of Kenya and Egypt holds steady, and how other African markets can attract more substantial investments in their burgeoning start-up ecosystems.
