African Startups Raise $306m in Third-Quarter As Downturn Persists

TLDR

• African tech startups secured $306.4 million in Q3 2024, totaling $836.5 million for the year with a 40% decline from 2023.
• Global capital shortage slows tech ecosystem funding, with Q1 & Q2 2024 witnessing a 50% drop compared to 2023.
• Notable funding from NALA, MNT-Halan, and Paymob hint at potential recovery as new funds emerge.

African tech startups secured $306.4 million in funding during Q3 2024, bringing the total for the year so far to $836.5 million, a 40% decline compared to the same period in 2023.

This drop follows a broader funding slowdown, with the global capital shortage continuing to impact the tech ecosystem. Last year, $2.4 billion was raised across 406 startups, marking a significant reset in the sector.

In 2024, Q1 and Q2 posted a 50% drop in funding compared to 2023, and while Q3 also saw a decrease, the rate of decline has slowed. Notable funding rounds from NALA, MNT-Halan, and Paymob have lifted the overall sentiment, signaling a potential recovery soon as new funds are launched.

Key Takeaways

African tech funding in 2024 remains significantly lower than in previous years, reflecting ongoing global capital challenges. However, the slower rate of decline in Q3 suggests the sector could be stabilizing, with major deals and new funds offering hope for recovery. Despite the downturn, there are positive signals indicating that investment in African tech startups may pick up as market conditions improve.