Kenya and Egypt Dominate African Start-up Funding Landscape in 2024
Kenya and Egypt have cemented their positions as the top destinations for start-up funding in Africa, collectively accounting for three-quarters of all investments in the third quarter of 2024.
Both countries have captured 75% of all African start-up investments in Q3 2024, underscoring their dominance as the continent’s leading tech hubs.
Egypt led the way with $272 million, followed closely by Kenya at $201 million. While these two countries dominate, other African markets are making strides. Tanzania, South Africa, Ghana, and Nigeria secured $10 million or more during the period. Additionally, ten countries closed at least one deal worth $100k or more, while 38 markets recorded no notable start-up funding activity.
Looking at the broader picture for 2024, Kenya and Egypt continue to dominate the funding landscape, accounting for 58% of the total funds raised so far this year. This marks a record high for both countries since 2019, surpassing their previous full-year and Q1-Q3 performance.
However, the other two members of the “Big Four” in African start-up ecosystems, Nigeria and South Africa, have seen their shares decline. Nigeria’s share stands at 15%, a slight increase from last year but significantly lower than its 35% share from 2019 to 2022. South Africa’s performance is even more concerning, with a 9% share, its lowest since 2019.
This year, only 18% of total funding has gone to the rest of Africa, with 23 markets recording at least one $100k+ deal. While there has been growth in funding, gender disparities persist. In 2024, less than 5% of total investments went to start-ups led by female CEOs, a decline from the 5.6% average between 2019 and 2023.
Key Takeaways:
* Duopoly: The dominance of Kenya and Egypt is likely to continue.
* Emerging Markets: Other African markets are showing growth potential.
* Gender Gap: Addressing gender disparities in funding remains a crucial challenge.
