TLDR:
- Venture capital funding in African startups dropped by 57% in the first half of 2024
- The decrease reflects a global slowdown in investment
As the wave of unprecedented venture capital funding that surged across various markets during the pandemic loses its vigor, Africa is experiencing significant cutbacks. Funding raised by venture-backed startups in the region slumped in the first half of the year, leaving fewer cash on the ground to spend on business ideas. African technology and startups secured a total of $780 million in funding in January through June 2024, falling 57% from the previous year and reaching the lowest level since the second half of 2020.
The decrease in funding is in line with the global trend of a slowdown in investment flows, with the transportation and logistics sector receiving the largest share of investment, followed by fintech and energy & water sectors. Despite the decrease in overall funding, top emerging markets in Africa such as Kenya, Nigeria, Egypt, and South Africa accounted for 79% of the funding invested in startups across the region. However, the report also highlights the gender disparity in funding, with the majority of funding going to ventures without a female founder.
