African start-ups raised $3.2bn in equity and debt funding in 2024, demonstrating resilience; equity funding amounts remained stable at $2.2bn, while debt dropped 17% to $1bn. The number of deals also remained stable: 457 equity deals (-3%) and 77 debt deals (+4%).
Investor confidence is on the rise, with a 2% increase in unique equity investors to 583 (after a sharp decline in the previous year). Nigeria regains the lead in both total amounts of equity (USD 520m) and the number of equity deals (103), while Egypt has the fastest growth (+48% year-on-year) in equity deals. Kenya leads in debt, with 38% of total financing and 31% of the total number of transactions.
The fintech sector continues to stand out, attracting 60% of total equity financing. Fintech is the only sector that has grown in terms of both deals (+16%) and funding (+59%), notably thanks to 4 mega-equity deals registered this year. Debt still accounts for a large share of equity, at 31%, down slightly from 35% last year.
These are the key figures published in the second edition of the Partech Africa Tech VC 2024 report produced by Partech, a technology investment company operating mainly in Europe and Africa, which with this report it publishes annually aims to provide a comprehensive and in-depth analysis of the evolution of the African technology venture capital ecosystem, looking at fully disclosed, partially disclosed and confidential deals. The African technology sector has seen only a 7% drop in capital since 2023, demonstrating resilience and securing $3.2bn in funding (equity and debt combined). Positive trends, such as increased investor participation and increased megadeals, are tempered by challenges, including the slowdown in the flow of Series A and B deals, longer fundraising timelines and increased extension rounds.
“After the first two quarters showed growth in the number of deals for the first time since the crisis, the momentum changed in the third and fourth quarters, although some megadeals in the fintech sector helped stabilise the market,” Cyril Collon, general partner at Partech, explains in a note. “The African venture capital ecosystem remains resilient, mirroring the global venture capital market, but interestingly, it is not currently benefiting from the AI-driven boost, which now accounts for 30 per cent of global venture capital funding. Key sectors, particularly fintech, continue to perform well, demonstrating the strength of the ecosystem and its core sectors.”
The African technology ecosystem recorded a slight increase in active equity investors, in stark contrast to the previous year’s trend that saw the number of investors decline by 50%. However, in 2024, investors were more active in the Seed+ phase and less involved in the Venture phase.
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