Despite an overall annual decline in fundraising activity, October 2024 stands out as a milestone for Africa’s start-up ecosystem. Notable records and major deals demonstrate that the continent’s potential remains robust.
Contrasting global context
Globally, fundraising in October 2024 reached 25 billion USD, marking a 10 % increase compared to the previous month. However, this growth lags behind the 15 % year-on-year increase seen in October 2023. Amid global financing challenges, the African ecosystem showcased resilience, raising a total of 1.7 billion USD.
Annual overview
Since the beginning of 2024, the African start-up ecosystem has faced a period of transition. The cumulative funds raised so far show a 32 % decline compared to the same period in 2023 when the annual milestone was achieved by June. This slowdown reflects global macroeconomic constraints and heightened investor caution.
Despite these headwinds, African entrepreneurs are continuing to explore opportunities across diverse sectors. Transactions exceeding 100,000 USD, although down 10 %, remain significant, with 393 deals. These figures underscore the ecosystem’s ability to adapt to challenging conditions.
In October 2024, African start-ups achieved a significant breakthrough, securing 254 million USD. This represents a near 50 % increase compared to the 12-month average and marks the best October performance since 2019. It also ranks as the second-best month of 2024 after July. Despite a global economic environment marked by tightened liquidity, 42 companies successfully attracted funding.
Major deals and key beneficiaries
Transactions exceeding 1 million USD amounted to 137 in 2024, a 20 % year-on-year decrease. For October, Nigerian FinTech Moniepoint secured the largest deal a 110 million USD Series C round, accounting for nearly 43 % of the month’s total funds. This milestone positions Moniepoint to potentially achieve unicorn status, becoming the eighth African company valued at over 1 billion USD.
Other notable transactions include Kenyan electric vehicle start-up BasiGO, which raised 42 million USD in a Series A round. Additionally, Yellow Card, a cryptocurrency-focused start-up, secured 33 million USD during its Series C funding round.
Geographic and sectoral distribution
In October, 60 % of the funds raised went to Nigerian start-ups, reaffirming the country’s central role in Africa’s entrepreneurial ecosystem. Sector-wise, FinTech dominated, capturing an equivalent share of the funds. This dual leadership highlights Nigeria’s strengths and the critical role of financial innovations in addressing the needs of its growing population.
Persistent inequalities
The data, however, reveals significant disparities. Nearly 98 % of the funds raised in October went to male-led enterprises, and 97 % to start-ups without a female founder. These figures underscore the ongoing challenge of inclusion and diversity within Africa’s start-up ecosystem. Targeted initiatives could foster greater female participation, which is vital for driving more representative and equitable innovation.
The limited access to funding for women and the geographic and sectoral concentration of investments raise questions about the balance and sustainability of growth. Promoting greater diversity—across genders and sectors—could enhance the ecosystem’s appeal and drive more inclusive growth.
