- African startups secured $2.2 billion in funding in 2024 through a combination of equity investments, debt, and grants.
- This accounts for 0.6% of the worldwide startup funding total of $275 billion.
- Although Africa experienced an 11% year-on-year decline in equity funding, it performed better than Asia.
In 2024, African startups secured $2.2 billion in funding through equity, debt, and grants (excluding exits), with $1.5 billion coming from equity. This accounted for only 0.6% of the global total of $275 billin, according to a report by Africa: The Big Deal
Although relatively modest, this amount highlights a significant disparity when compared to Africa’s share of global GDP, which is approximately 5%, or its population, which accounts for about 18% of the world’s total.
The report highlighted that while talent is evenly distributed across the continent, opportunities are not, and many investors are overlooking the potential of Africa’s entrepreneurs and markets.
It is remarkable that a continent with nearly 1.4 billion people, despite its challenges, attracts about the same amount in startup funding as Miami ($1.8 billion), the 12th largest city in the United States by equity fundraising last year. This disparity underscores a significant missed opportunity.
Africa’s equity fundraising performance for 2024 presents a mixed picture. While the continent saw an 11% decline year-on-year, it performed better than Asia, which experienced a 27% drop, primarily driven by a significant slump in China (-56% YoY).
In contrast, India, with a population and GDP similar to Africa’s, had a strong year, achieving over 40% growth in equity funding. Meanwhile, the US and North America (+21% YoY) and Latin America (+9% YoY) experienced growth. While Africa faced a contraction, global equity funding increased by 4%.
Looking at longer-term trends, especially from 2020 to 2024, Africa has performed exceptionally well, with funding increasing by 62% (from $0.9 billion in 2020 to $1.5 billion in 2024).
Other regions, including the US (+5%), Europe (+9%), and India (+1%), have returned to their pre-heatwave funding levels.
Meanwhile, other regions are still struggling to return to 2020 levels, with Latin America (-33%), Asia (-54%), and China (-78%) experiencing significant declines. Overall, Africa stands out as an outlier, demonstrating a strong recovery despite the global contraction