Kenya, Nigeria Lead As Africa’s ‘Big 4’ Attract 84% Of Start-up Funding

Kenya and Nigeria, alongside Egypt and South Africa, collectively known as Africa’s “Big Four”—secured 84 percent of all start-up funding on the continent in 2024, maintaining a trend consistent since 2019, Africa: The Big Deal latest report revealed.

Kenya led with $638 million, followed by Nigeria with over $400 million, reinforcing their crucial roles in shaping Africa’s entrepreneurial and funding dynamics.

East Africa claimed the largest share of funding for the second consecutive year, raising $725 million despite an 18 per cent year-on-year (YoY) decline.

Kenya emerged as the undisputed leader, pulling in $638 million—88 per cent of the region’s total and 29 per cent of all funds raised across the continent. Landmark deals in climate tech, including investments in d.light, SunCulture, and Basigo, propelled Kenya to the forefront, making it Africa’s most funded market in 2024. Tanzania followed distantly with $53 million, while Uganda secured $19 million. Other countries like Rwanda, Sudan, and Ethiopia saw limited activity.

West Africa, with $587 million in funding, climbed to second place after ranking fourth in 2023. Nigeria led the region with over $400 million, closely matching the totals for Egypt and South Africa. Notably, the region exhibited the most balanced distribution, with Nigeria accounting for 70 per cent of its total funding. Ghana ($68 million), Benin ($50 million), Côte d’Ivoire ($33 million), and Senegal ($22 million) contributed significantly to the region’s stability, limiting the YoY decline to just three per cent.

North and South Africa faced steep declines. For instance, Northern Africa attracted $478 million, a 35 per cent drop from 2023. Egypt, which represented 84 per cent of the region’s funding, saw a sharp 37 per cent decline, while Morocco held steady with $70 million.

Southern Africa experienced a similar contraction, with funding plummeting by 36 per cent to $397 million. South Africa alone accounted for 99.4 per cent of the region’s total, highlighting the limited funding activity in neighboring countries.

Central Africa struggled to attract investments as it remained the least funded region, securing just $5 million in 2024, a staggering 90 per cent decrease from the previous year.