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African tech startups raised $306,367,000 in funding during the third quarter of 2024, bringing the total for the first nine months of the year to $836,522,000, representing a 40% decrease compared to the same period in 2023. This data comes from the latest African Tech Startups Funding Report, published by Disrupt Africa.
In 2023, African tech startups garnered $2.4 billion from 406 companies. However, a global capital shortage that began last year continues to impact the African tech ecosystem in 2024. Funding in Q1 and Q2 dropped by over 50% compared to the same period in 2023, and the Q3 figures reflect a similar downward trend.
Despite the persistent decline, signs of recovery are emerging. The rate of the downturn has slowed, with a smaller year-on-year and quarter-on-quarter decline in Q3 2024. By comparison, African startups raised $1.4 billion by the end of September 2023, which already marked a 48% decrease from 2022.
Tom Jackson, co-founder of Disrupt Africa, expressed cautious optimism regarding the future of the African tech market. “While Q3 2024 may not have been stellar compared to recent years, there are encouraging signs amidst the funding slowdown,” Jackson said. “The pace of decline has eased, and significant rounds from companies like NALA, MNT-Halan, and Paymob have contributed to a more positive outlook.”
Jackson added that although the African tech sector is still navigating a challenging funding environment, the announcement of new venture capital funds provides hope for an eventual market rebound.
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