In a dramatic reshaping of Africa’s startup funding landscape, Nigeria, despite securing over $400 million in 2024, fell behind Kenya in terms of total investments for the second consecutive year. This revelation comes from a report by Africa: The Big Deal, which analyzes startup funding activities across the continent.
Nigeria’s 2024 funding mirrored its 2023 performance, with approximately $410 million raised. Notable contributors to this figure include Moove, which secured $110 million through a Series B round led by Uber, and Moniepoint, whose Series C funding round matched this amount. Yet, these successes weren’t sufficient to close the widening gap between Nigeria and Kenya, the report highlighted.
Kenya: Africa’s Funding Beacon
Kenya’s startup ecosystem attracted an impressive $638 million in 2024, forming 88% of East Africa’s total funding of $725 million. This dominance propelled East Africa to maintain its top regional position on the continent for the second year running, securing 33% of Africa’s total startup funding.
Despite an 18% decline from 2023, Kenya’s climate-tech sector emerged as a key driver of investment, with startups such as d.light, SunCulture, and Basigo attracting significant capital inflows. These investments emphasize Kenya’s strategic focus on sustainable energy and technology-driven solutions to pressing challenges.
In stark contrast, other East African nations played minor roles in the region’s overall performance, with Tanzania raising $53 million and Uganda attracting $19 million, ranking them 7th and 11th continentally.
West Africa Regains Momentum
West Africa rebounded to claim the second spot among African regions, recording $587 million in total funding, equivalent to 27% of the continent’s total. The report cited a modest 3% decline in the region’s year-over-year funding—markedly better than its previous slump in 2023, when it lost the top position to East Africa.
Nigeria retained its place as West Africa’s powerhouse, contributing over $400 million. The report also noted regional diversity, with countries like Ghana ($68 million), Benin ($50 million), Côte d’Ivoire ($33 million), and Senegal ($22 million) broadening the funding base.
However, industry analysts caution that Nigeria must sustain its startup innovation to reclaim Africa’s funding crown. “Nigeria has been a traditional leader, but the evolving funding landscape underscores the need for broader sectoral growth,” a venture capital expert remarked.
North and Southern Africa Struggle
North Africa experienced a steep 35% decline in startup funding in 2024, managing to attract $478 million. Egypt, which commands the lion’s share of North Africa’s startup activity, recorded a 37% drop, reflecting reduced investment inflows into the region. Morocco held steady with $70 million, earning a commendable fifth place continentally.
Southern Africa faced similar challenges, reporting a 36% decrease in total funding, bringing in $397 million. South Africa accounted for nearly all of this, underscoring the region’s historical dependence on its leading market. Experts suggest diversifying regional contributors could mitigate future downturns.
Central Africa: The Weakest Link
Central Africa’s performance remained unimpressive, raising a meager $5 million in 2024—an outcome significantly lower than its 2023 total. With negligible contributions, the region reaffirmed its marginal role in Africa’s growing tech ecosystem.
The Big Four and Emerging Players
Africa’s leading startup markets—Kenya, Nigeria, Egypt, and South Africa—continued to assert dominance, drawing 84% of the continent’s total $2.2 billion funding in 2024. This trend has remained consistent since 2019, highlighting the outsized influence of these nations on the broader tech landscape.
Nonetheless, emerging players like Morocco, Ghana, and Benin are beginning to challenge the status quo. Morocco’s resilience in North Africa, coupled with West Africa’s increased participation from non-Nigerian markets, points to a future where Africa’s tech ecosystem becomes more inclusive and geographically diversified.
Context: The Bigger Picture
The report’s findings shed light on shifting dynamics within Africa’s tech funding environment. Factors such as regional focus areas—Kenya’s emphasis on climate tech, for instance—play pivotal roles in determining investment inflows. Meanwhile, global economic uncertainties have tempered the once-unrelenting growth of Africa’s tech scene, forcing startups to innovate strategically and redefine their value propositions.
“Nigeria, Kenya, Egypt, and South Africa remain anchors of the African tech ecosystem,” stated Africa: The Big Deal. “However, a diversified funding approach and contributions from emerging markets will shape the continent’s tech trajectory in 2025 and beyond.”
As the competition intensifies, Nigeria faces the dual challenge of boosting its tech investments while also expanding into underfunded sectors like health tech, agritech, and renewable energy. The rise of Kenya has put the spotlight on African startups’ capacity to respond to the evolving demands of global investors, marking a decisive moment for the continent’s tech future.
