Despite this, key sectors like transport, fintech, and cleantech continued to attract significant investments.

Kenya emerged as the leading country in startup funding, while Nigeria, South Africa, and Egypt remained critical players.

The increased reliance on debt financing and persistent gender disparity underscores the evolving dynamics and challenges within the African startup ecosystem.

These trends indicate a cautious yet sustained interest in key sectors, highlighting the resilience and adaptability of African startups amid global economic pressures.

Overall Funding Amounts:

• H1 2024: African startups raised approximately $780 million​.
• H1 2023: The funding amounted to around $1.8 billion

This indicates a significant decline of about 57% in total funding from H1 2023 to H1 2024.

Distribution by Country:

• Nigeria:
  • H1 2024: Raised around $172 million.
  • H1 2023: Nigeria was the leading country in funding, maintaining a strong position, but specific numbers weren’t detailed.
• Kenya:
  • H1 2024: Raised $244 million, becoming the top recipient.
  • H1 2023: Kenya had significant funding but experienced a 25% year-on-year decline compared to its peak in 2022​ 
• Egypt:
  • H1 2024: Secured $101 million 
  • H1 2023: Continued to be a strong player, but with no detailed comparison numbers.
• South Africa:
  • H1 2024: Received $85 million.
  • H1 2023: Maintained a notable share of funding.

The “Big Four” countries (Nigeria, Kenya, South Africa, and Egypt) continue to dominate, with Kenya emerging as the leader in H1 2024.

Sector Distribution:

• Transport and Logistics:
  • H1 2024: Attracted $218 million, driven by major deals like Moove ($100 million)​  
  • H1 2023: Also saw strong performance in this sector, but with no specific comparison figures.
• Fintech:
  • H1 2024: Raised $105 million, retaining its position as the sector with the most deals​  
  • H1 2023: Fintech was the leading sector in funding, emphasizing its continued dominance.
• Cleantech and Agritech:
  • H1 2024: Cleantech startups like Husk Power and Wetility received significant investments​  
  • H1 2023: Similar trends with rising investments in sustainable and agritech solutions, though specific numbers were not detailed.

Top 10 Most Funded Startups in H1 2024:

1. Moove (Nigeria) –  $100 million.
2. M-KOPA (Kenya) – $51 million.
3. SPIRO (Kenya) – $50 million.
4. SunCulture (Kenya) – $27.5 million.
5. Roam (Kenya) – $24 million.
6. Pula (Kenya) – $20 million.
7. VaIU (Egypt) – $18.7 million.
8. OneOrder (Egypt) – $16 million.
9. Planet42 (South Africa) – $16 million.
10. Simera Sense (South Africa) – $15 million.

Most Active Investors:

• DEG (Germany) – 18 deals
• Launch Africa Ventures – 12 deals
• Mastercard – 12 deals
• Techstars – 9 deals
• GSMA Innovation Fund – 8 deals
• Catalyst Fund – 7 deals

Funding Structure:

• H1 2024:
  • Equity financing constituted 71%, while debt financing was 29%​ 
• H1 2023:
  • Equity financing was predominant, with debt playing a minor role.

Gender Disparity:

• H1 2024: Only 15% of total funding went to ventures with at least one female founder, and 8

In the first half of 2024, African startups raised a total of $780 million in funding, marking a significant decline compared to previous years.

This amount represents a 31% decrease from the second half of 2023 and a 57% drop from the first half of 2023.

Here is a breakdown of the funding by country and sector:

By Country:

• Kenya: $244 million (32% of total funding)
• Nigeria: $172 million
• Egypt: $101 million
• South Africa: $85 million

By Sector:

• Transport and Logistics: $218 million, led by major deals such as Moove ($100 million) and Spiro ($50 million).
• Fintech: $105 million, remaining the sector with the highest number of startups raising $1 million or more.
• Agric and Food: $50 million.
• Energy: $49 million.
• Healthcare: $45 million.

Despite the overall decrease, the “Big Four” countries—Nigeria, Kenya, South Africa, and Egypt—continued to dominate the funding landscape, attracting the majority of investments​. 

The distribution highlights the ongoing interest in sectors like transport and logistics, fintech, and energy.

Conclusions on Funding Trends in H1 2024 vs. H1 2023

Overall Decline in Funding:

The first half of 2024 experienced a significant reduction in total funding for African startups, with a 57% drop compared to the same period in 2023.

This decline is attributed to the challenging global economic environment, characterized by macroeconomic issues, tighter monetary policies, and higher interest rates.

Funding Structures:

• There was an increased reliance on debt financing in H1 2024, accounting for 29% of the total funding. This shift reflects investors’ preference for more secure returns amid economic uncertainties.

Gender Disparity:

• The funding landscape continued to favor male-founded and male-led ventures, with only 15% of the total funding going to startups with at least one female founder, and 8% to those led by female CEOs. This ongoing gender imbalance highlights a critical area needing improvement for more inclusive growth.

The capital will be channeled towards businesses operating within Arise IIP’s Special Economic Zones (SEZs) across the continent.

The partnership aims to foster entrepreneurship and drive economic growth in Africa.

AFC will provide not only financial backing but also advisory services to help businesses navigate the SEZ environment.

Additionally, the corporation plans to leverage funds from Export Credit Agencies and other financial institutions to bolster the capital pool.

Arise IIP, currently developing the Bugesera SEZ in Rwanda, views this collaboration as a significant step towards creating a prosperous Africa.

Gagan Gupta, CEO of Arise IIP, emphasized the importance of empowering entrepreneurs with the necessary financial support.

Samaila Zubairu, President and CEO of AFC, expressed the corporation’s commitment to creating an ecosystem that promotes trade, job creation, and overall economic advancement.

The partnership is expected to stimulate growth and development across the continent.