In 2024, African startups raised a total of $2.2 billion through equity, debt, and grants (excluding exits), with $1.5 billion of that coming from equity. This represents just 0.6% of the global total of $275 billion, according to a report by Africa: The Big Deal.
While modest, this figure is a significant gap compared to Africa’s share of global GDP, which is around 5%, or its population, which makes up about 18% of the world’s total.
The report noted that while talent across the continent is distributed evenly, opportunities are not, and many investors are missing out on the potential of Africa’s entrepreneurs and markets.
It is striking that a continent with nearly 1.4 billion people, despite its challenges, attracts roughly the same amount in startup funding as Miami ($1.8 billion), the 12th largest city in the United States by equity fundraising last year. This disparity highlights a critical missed opportunity.
Africa’s performance in equity fundraising for 2024 presents a mixed picture. The continent saw an 11% decline year-on-year, but it fared better than Asia, which experienced a 27% drop, largely due to China’s significant slump (-56% YoY).
However, in Asia, India, with a population and GDP comparable to Africa’s – had a strong year, achieving over 40% growth. On the other hand, the US and North America (+21% YoY) and Latin America (+9% YoY) saw growth. So, while Africa saw a contraction, globally, equity funding grew by 4%.
Looking at longer-term trends, particularly from 2020 to 2024, Africa has done remarkably well, with funding rising by 62% (from $0.9 billion in 2020 to $1.5 billion in 2024).
Other regions, such as the US (+5%), Europe (+9%), and India (+1%), have recovered to their pre-heatwave funding levels.
Meanwhile, other parts of the world are still struggling to reach 2020 levels, with Latin America (-33%), Asia (-54%), and China (-78%) seeing significant declines. Overall, Africa stands out as an outlier, showing a strong recovery despite the global contraction.
