Despite the launch of several investment vehicles at the start of the year, investment in African startups continued its downward trend in 2024, following a decline in funding in 2023 compared to 2022.

African startups raised a total of $466 million in the first quarter of 2024, marking a 47% decrease compared to the same period in 2023, according to data released on April 3 by Africa: The Big Deal, a database that tracks funding exceeding $100,000 raised by African startups.

The logistics sector, led by a significant deal involving Nigerian startup Moove, which received a $100 million investment from Uber, surpassed the fintech sector, raising a total of $151 million. Fintech followed closely with $105 million, while the agrifoodtech sector completed the top three with $50 million.

Notably, 87% of these funds were raised by startups from Nigeria ($160 million), Kenya ($108 million), South Africa ($72 million), and Egypt ($53 million). This group, known as the Big Four, continues to dominate the African investment market, while the consistent decline in funding since 2023 has not benefited other technology ecosystems on the continent.

Outside of the Big Four, only four other African countries - Uganda ($16 million), Ghana ($10 million), Tanzania ($9 million), and Morocco ($7 million) - managed to attract more than $5 million in the first quarter of the year.

Adoni Conrad Quenum