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The state of the tech world in the venture capital market for the African continent in 2024 is strong. Though there is evidence of a mixed bag performance in some countries, a report by Partech, a reputable player in global finance, puts Nigeria as number one among countries that attracted substantial investment in the technological field in the past year.

Nigeria, Africa’s most populous country, came out tops in venture capital investment on the continent in 2024, leading in both equity funding and deal counts. It secured US$520m in equity funding, which is 11 per cent improvement on the previous year.

Nigeria was followed by South Africa which raised $459m in equity last year, a 16 per cent decline compared to 2023 for a total of 67 deals.

Nigeria was followed by South Africa which raised $459m in equity last year, a 16 per cent decline compared to 2023 for a total of 67 deals.

Egypt with $297m (in 89 deals) came third, followed by Kenya $221m (in 59 deals) came fourth. Other countries are also maintaining their strides in this delicate terrain.

According to Mr. Tidjane Deme, General Manager of Partech, “In 2024, with the exception of Nigeria, all of the top four markets experienced a decline in funding ... However, in terms of deal number, Egypt stood out with a 48 per cent increase in deal count, signalling a renewed energy in its VC ecosystem.”

Mr. Cyril Collon, a top brass at Partech, further explains that, “The African venture capital ecosystem remains resilient, mirroring the global venture capital market, but, interestingly, without benefitting (for now) from the AI-driven boost accounting now for 30% of the global venture capital funding. It’s driven by key sectors, particularly fintech, which continue to power forward, demonstrating the strength of the ecosystem and its foundational sectors.”

According to the Partech report, African startups demonstrated resilience in 2024, raising a total of $3.2B. The continent’s venture capital market stabilized, showing a minor decrease in total funding and a nearly unchanged deal count compared to 2023. The consensus is that though growth is not yet bullish, the African tech ecosystem is performing well relative to other global market trends.

Apart from the aforementioned top four countries, Ghana, Morocco, and Tanzania are the only other countries to surpass the US$50M equity funding threshold..

French-speaking African countries now account for 55 per cent of the total equity funding volume within the broader context of the whole continent, underscoring their continued appeal outside of the top four. However, this represents a significant decline from their 68 per cent share of total funding of the rest of Africa in 2023.

The Fintech sub sector continues to dominate Africa's tech ecosystem, securing $1.3b, equivalent to 60 per cent of total equity funding. The sector garnered 131 deals, accounting for 29 per cent of the transaction count. Fintech is growing 16 per cent yearly in deal count and 59 per cent in total funding, making it an active and growing ecosystem on its own.

However, according to the report, in 2024, gender parity declined as female-founded startups raised a smaller share of deals (18 per cent), as well as funding (seven per cent) compared to 2023.

A better performance is hoped for in 2025.