Funding for African startups has been plummeting for months. However, the July 2024 figures suggest a potential rebound, as it marks the best month for the African tech ecosystem since May 2023 when $596 million was raised.

African startups raised $420 million in July 2024, according to Africa: The Big Deal, a database tracking funding over $100,000 secured by the continent’s startups, as reported on Tuesday, August 6.

"Indeed, with $420 million raised (exc. exits), this is the highest monthly performance of the ecosystem in 14 months; more than what was raised in the whole of Q2; and 2.5x times the average monthly amount raised over the past 12 months," explained Africa: The Big Deal.

This surge in funding comes amid months of dwindling financing in the African tech ecosystem. While July saw a significant uptick due to three major deals, it remains to be seen if this marks a sustained trend.

The three deals that contributed to the rise includes a $176 million financing for d.light, a Kenya-based startup providing solar energy solutions; $157.5 million for Egyptian fintech unicorn MNT-Halan; and $40 million for Tanzanian fintech Nala. These three transactions accounted for $373.5 million, or 88.9% of the $420 million raised in July 2024.

Over the said period 47 startups raised at least $100,000, with 16 of them securing at least $1 million.

Adoni Conrad Quenum