The African tech startup ecosystem faced a sharp decline in funding in 2024, with total investments dropping by more than 50% to $1.1 billion, as the global capital crunch continued to take its toll on the continent.
This is according to the 10th edition of the African Tech Startups Funding Report, released by Disrupt Africa in partnership with Art of Scale. The report, which is available for free, highlights the ongoing funding challenges in the sector.
In 2024, only 200 startups secured funding, compared to 406 in 2023, marking a 100% decline in the number of funded startups and a significant drop from the $2.4 billion raised last year. This marks the second consecutive year of decline, as investor confidence remains shaken by the broader global economic downturn.
The number of active investors in Africa’s tech ecosystem also saw a 35% drop, while mergers and acquisitions (M&A) activity slowed significantly, further signaling caution in the market.
Despite the decline in funding, the “big four” tech hubs—Nigeria, Egypt, Kenya, and South Africa—retained their dominance, continuing to attract the majority of investments. Investors remained focused on these key markets, which are perceived as less risky amid economic uncertainty.
Fintech, long the leading sector for tech investment in Africa, remained the top choice for investors in 2024, but it too saw a second consecutive year of decline—and at an even faster rate than before.
The Disrupt Africa report provides a comprehensive breakdown of the funded startups, investor details, and funding amounts, alongside insights into investment trends across different regions and industries, as well as data on African startup acquisitions.
Reflecting on the findings, Disrupt Africa co-founder Gabriella Mulligan acknowledged the tough year for African startups but remained cautiously optimistic.
“2024 was a very difficult year for African tech from a funding perspective, with a significant decline in investment for the second year in a row. Many startups are struggling, but this is not a challenge unique to Africa. In fact, we are not seeing declines as severe as those in other parts of the world. With Q4 2024 and Q1 2025 numbers showing signs of recovery, we can at least hope that the end of the crisis is near,” she said.
While African startups continue to grapple with funding challenges, there is growing anticipation that the tide may soon turn as investor confidence gradually rebounds.
