Startup funding in Africa remained marginal in 2024, accounting for just 0.6% of total global funding, according to data from Africa: The Big Deal. The report highlights that Africa’s total equity fundraising of $1.5 billion was nearly equivalent to the $1.8 billion raised in Miami, the 12th largest city in the U.S. by startup investment—a stark comparison for a continent with a population of 1.4 billion people.
In 2024, Africa’s startup equity funding shrank by 11% year-on-year, contrasting with a 4% global increase. Other markets showed varied performance; Asia saw a 27% decline, largely due to China’s steep 56% drop, India with a population and GDP comparable to Africa, experienced 40% growth in startup funding and North America and Latin America both recorded positive growth.
Despite the setback in 2024, Africa has experienced strong long-term growth. Between 2020 and 2024, equity funding surged 62%, rising from $0.9 billion to $1.5 billion. The following outpaced other regions, which saw either modest growth or sharp declines are the U.S. which experienced 5% growth, Europe which experienced 9% growth, India which experienced 1% growth, Latin America which experienced 33% decline, Asia which experienced 54% decline and China which experienced 78% decline.
The report notes that most regions have only returned to their 2020 levels, whereas Africa’s long-term trajectory remains positive.
While Africa has shown resilience in startup funding growth over the past four years, the persistent funding gap remains a concern. Experts argue that limited investor confidence could prevent the continent from unlocking critical capital needed for innovation, job creation, and economic transformation.
To bridge this gap, stronger investor engagement and more supportive regulatory frameworks are essential to sustaining Africa’s momentum in the global startup ecosystem.
