In H1 2024, Nigeria Tops Venture Capital Investments Amid Africa's Economic Struggles

In the first half of 2024, the venture capital landscape in Africa experienced a significant downturn, with total funding reaching $393 million and only 119 deals – the lowest H1 funding since 2019. This decline, however, did not paint the entire picture, as individual countries showcased varying trends.

Egypt's venture capital activity remained resilient, with a mere 15% year-on-year drop in the number of deals, primarily supported by early-stage and Series "A" investments. Egypt's non-mega funding grew by 11% when excluding large-scale transactions, suggesting a healthier and more diverse investment ecosystem compared to its peers.

Kenya's venture capital activity was bolstered by high-value deals, despite a decrease in funding compared to H1 2023. Morocco showed promising growth, mainly driven by early-stage funding, including a $7 million Pre-Series "A" deal by Yola Fresh.

Nigeria, however, was the most funded country in H1 2024, primarily due to a $100 million mega deal secured by Moove Africa, a Nigerian-based FinTech startup. Without this mega deal, Nigeria would have ranked fourth, indicating a sharp 77% year-on-year (YoY) drop in funding compared to H1 2023.

The landscape of venture capital investment in Africa seems to be grappling with gaps in scaling opportunities. South Africa, for instance, saw no deals beyond Series "A" in H1 2024, leading to a steep decline in investment activity. This points to a potential gap in scaling opportunities for startups in South Africa, which could deter future investments if not addressed.

Addressing these gaps and creating a balanced investment environment could foster sustainable growth across Africa's venture capital landscape. The geographical trends observed in H1 2024 in Africa reflect broader economic challenges and investor preferences, highlighting the need for strategic interventions to attract and retain investments in the continent.

In H1 2024, Nigeria Tops Venture Capital Investments Amid Africa's Economic Struggles