Kenya leads Africa in start-up funding - report

Kenya has emerged as Africa's leading nation in attracting start-up funding, according to recent data from Big Deals.

The country, alongside Nigeria, Egypt, and South Africa, collectively known as the "Big Four" dominated the continent's investment landscape, securing 84% of all start-up funding in Africa in 2024.

The trend has been consistent since 2019. The four countries play an extremely important role in defining regional dynamics.

Data from the start-up funding tracker, Africa: The Big Deal, shows that East Africa, especially Kenya, attracted the most investment money in Africa, raising $725 million, about one-third of the continent's total funds raised.

Kenya secured $638m, which is 88% of East Africa's total and 29% of all the funds raised in Africa.

"In 2024, Kenya alone attracted $638 million, making up a staggering 88% of the total funds raised in East Africa and 29% of all money raised across the continent. This made Kenya the top market for investment in Africa by far," the report said.

Tanzania and Uganda were distant runners-up in the region, raising $53 million and $19 million, respectively.

Countries like Rwanda, Sudan, and Ethiopia also saw some investment activity, though at a much smaller scale.

Western Africa, which claimed the second-highest share of funding, moved up from fourth place in 2023, with $587 million raised.

Nigeria alone contributed over $400 million, similar to what Egypt and South Africa raised.

Despite a small 3% decline from 2023, West Africa stayed balanced, with Ghana, Benin, Côte d'Ivoire, and Senegal also contributing significantly.

In contrast, Northern Africa saw a sharp decline, with funding dropping by 35% to $478 million. Egypt, which typically drives the majority of funding in the region, experienced a dramatic 37% contraction. While Morocco managed to raise $70 million, it was not enough to offset the losses.

Southern Africa also faced a downturn, with funding falling by 36% to 18%, $397 million.

Finally, Central Africa recorded just $5 million in start-up funding, marking a drastic decrease of more than ten times compared to 2023, reflecting the region's minimal activity in this space.

Kenya's leadership in start-up funding reflects a broader trend where the Big Four nations continue to attract the lion's share of capital, shaping the investment landscape across Africa.