Kenya Tops Africa In Venture Capital Funding For Third Consecutive Year

Kenya solidified its position as Africa’s leading destination for venture capital funding in 2024, attracting $638 million, according to a report by Africa: The Big Deal.

This marks the third consecutive year Kenya has claimed the top spot on the continent.

The report highlights that East Africa emerged as the most funded region in Africa for the second year running, raising $725 million in total.

Kenya alone accounted for an impressive 88% of this amount, equivalent to 29% of all venture capital raised on the continent.

“Kenya is by far the market that attracted the most funding in Africa in 2024,” the report noted, citing significant investments in climate tech companies such as d.light, SunCulture, and Basigo as key drivers of this growth.

Kenya was followed in the region by Tanzania, with $53 million, ranked seventh overall, and Uganda, with $19 million, ranked 11th.

Other East African countries, including Rwanda, Sudan, and Ethiopia, recorded modest funding activity.

West Africa secured the second position in 2024, attracting $587 million, representing 27% of the continent’s total funding.

Nigeria, the region’s leader, garnered just over $400 million, matching the performance of Egypt and South Africa.

Other notable contributors from the region included Ghana ($68 million), Benin ($50 million), Côte d’Ivoire ($33 million), and Senegal ($22 million).

“Western Africa is the most balanced region, where the leading country represents the smallest share of the total, at 70%,” the report said.

Despite this balance, the region experienced only a minor drop in funding compared to 2023, declining by 3%.

North Africa, however, saw a significant decline, with funding falling by 35% to $478 million.

This was primarily driven by a sharp 37% reduction in funding in Egypt, which accounted for 84% of the region’s total.

Morocco, which raised $70 million, ranked fifth overall, but its performance was not enough to offset the decline.

Southern Africa also experienced a steep drop, with funding decreasing by 36% to $397 million. South Africa dominated the region, accounting for 99.4% of the total funding, but saw its funding fall by 34%. Other countries in the region recorded minimal activity.

Central Africa remained the least funded region, with only $5 million raised in 2024—a figure more than 10 times lower than in 2023.