The first quarter of 2024 witnessed a significant slowdown in venture capital funding for African startups, with total investments plunging by 62% year-over-year to $329.5 million. This decline follows a challenging 2023, where the sector experienced a substantial drop in funding activity.
Despite the overall downturn, mobility startups emerged as a bright spot, attracting the lion’s share of investments. Moove, a leading mobility platform, secured a substantial investment from ride-hailing giant Uber, highlighting the continued interest in innovative transportation solutions across the continent.
While funding for fintech startups remained subdued, other sectors, including climate tech, showed signs of resilience. However, the overall funding landscape remains challenging, with later-stage funding rounds dominating the scene.
This period also saw the emergence of new Africa-focused funds, demonstrating continued investor interest in the long-term potential of the African tech ecosystem. However, the success of these funds will depend on their ability to generate strong returns and demonstrate the viability of investing in African startups.
