African startup funding continues to decline sharply with the first half of 2024 being the quietest semester since late 2020. This represents a significant drop from previous years, with the "Big Four" startup hubs of Nigeria, Kenya, Egypt and South Africa continuing to dominate the funding landscape

African startups raised $780 million in the first half of 2024, a 57% decline compared to the same period in 2023, according to data released on Thursday, July 4, by Africa: The Big Deal, a database tracking investments of over $100,000 in the continent's startup ecosystem.

Of the total funds raised, 66% ($513 million) were in the form of equity, while $254 million (33%) were secured as debt. Startups in the Big Four countries (Kenya, Nigeria, Egypt, and South Africa) accounted for 79% of the total funds raised during this period.

Kenya led with $244 million (32%), followed by Nigeria with $172 million (23%), Egypt with $101 million (13%), and South Africa with $85 million (11%). Among other countries outside the Big Four, Benin stood out with $50 million raised by the startup Spiro through debt from Afreximbank, while Ghana followed with $29 million, Uganda with $19 million, Morocco with $14 million, and Senegal with $11 million.

Transport and logistics startups, driven by Nigeria's Moove ($100 million) and Benin's Spiro ($50 million), led the sectors with $218 million, representing 28% of the total funds raised. Fintech followed with $186 million (24%), and startups in the energy and water sectors rounded out the top three with $132 million (17%)

Adoni Conrad Quenum