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Kenya has established itself as a prominent center for startup investment in Africa, securing USD 638 million in funding in 2024. This accounts for 29% of the total startup investments across the continent for that year. Even though overall startup funding in Africa dropped by 25% to USD 2.2 billion in 2024, Kenya upheld its position as a leader for the second year in a row.
The region secured $725 million in funding within East Africa, accounting for a third of Africa’s total. Kenya was the dominant player, contributing 88% of East Africa’s funding. This success is largely attributed to substantial investments in the climate technology sector, with companies such as d.light, SunCulture, and Basigo playing significant roles.
The ‘Big Four’ African countries—Kenya, Nigeria, Egypt, and South Africa—continued to dominate the startup funding landscape, collectively attracting 84% of all investments on the continent. This trend has been consistent since 2019, highlighting the pivotal role these nations play in shaping Africa’s startup ecosystem.
Regionally, West Africa climbed to second place with USD 587 million in funding, largely driven by Nigeria, which contributed over USD 400 million. Other countries in the region, such as Ghana, Benin, Côte d’Ivoire, and Senegal, also showed significant funding activity. In contrast, North Africa saw a 35% drop in funding, largely due to a major decline in Egypt. Southern Africa also faced difficulties, with South Africa’s funding falling by 34%, making the region heavily dependent on it for 99.4% of total funding. Central Africa struggled the most, securing only USD 5 million—a tenfold decrease from 2023.
In regional terms, West Africa rebounded to the second position, securing USD 587 million in funding, with Nigeria alone accounting for over USD 400 million. Other West African nations, including Ghana, Benin, Côte d’Ivoire, and Senegal, also demonstrated notable activity. In contrast, North Africa experienced a 35% decline in funding, primarily due to a significant contraction in Egypt. Southern Africa faced challenges as well, with South Africa’s funding decreasing by 34%, making the region heavily reliant on South Africa, which accounted for 99.4% of its total funding. Central Africa lagged significantly, attracting only $5 million in funding—a tenfold decrease from 2023.
However, challenges remain. Economic volatility, influenced by a sluggish global economy, could impact future investment opportunities. Regional competition from countries like Nigeria and Egypt persists, with West Africa showing increasing diversification. Equity gaps also exist, particularly in reaching smaller startups led by women and marginalised communities.
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Kenya’s performance in 2024 underscores its resilience and potential as a leader in Africa’s startup ecosystem. The country’s focus on climate technology and a supportive entrepreneurial environment have been instrumental in attracting significant investment. Nonetheless, addressing existing challenges will be crucial to sustaining and enhancing this growth trajectory in the coming years.
