Nairobi — Kenya has emerged as the leading African country in startup funding, raising $437 million (Sh56.5 billion), which represents 31 percent of total funds raised on the continent, according to data from Africa: The Big Deal.
The growth highlights the strong preference for Kenyan startups among global investors, driven by the country’s strategic location, fast internet speeds, and favorable policies.
Kenya’s robust startup ecosystem has positioned it ahead of Egypt, which raised $373 million (Sh48.3 billion) during the same period. Together, Kenya and Egypt account for 58 percent of the total startup investments in Africa.
“This marks the highest share of funding on record for both countries since 2019,” Africa: The Big Deal reported.
In contrast, Nigeria, once a leader in startup funding, has raised $218 million (Sh28.2 billion), representing a 15 percent share–up slightly from last year’s 14 percent but still a notable decline from its historical average of 35 percent between 2019 and 2022.
South Africa, meanwhile, has recorded its lowest performance in terms of startup funding since 2019, securing only $125 million (Sh17.2 billion), which accounts for 9 percent of the continent’s total funding in 2024 so far.
The remaining 18 percent of the funds raised is distributed across 23 African markets, with countries like Tanzania, Ghana, Morocco, Uganda, and Rwanda recording notable deals.
Significant investments were seen in companies like Spiro in Benin (Sh6.5 billion), Nala in Tanzania (Sh5.2 billion), and Fido in Ghana (Sh3.9 billion), which are showing signs of maturity and growth.
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Publish date : 2024-10-22 09:24:12
