(Ecofin Agency) - For the second year in a row, funding raised by African startups has declined. East Africa remains the continent's leading region for attracting such investments.

In 2024, African startups raised $2.2 billion in equity, debt, and grants (excluding bond issuances), according to data released on January 6 by Africa: The Big Deal, a database tracking investments over $100,000. This represents a 24.14% decline compared to 2023, when $2.9 billion was raised. Data also showed that 188 companies raised at least $1 million in 2024, down from 209 in 2023 and 353 in 2022.

Kenya topped the list of countries attracting the most funding, with $638 million raised, making up about 29% of the total. Nigeria followed with $410 million, Egypt ($400 million) and South Africa ($394 million). Together, these four countries, often called Africa's Big Four, accounted for 83.73% of the total funds raised by startups across the continent in 2024, totaling $1.84 billion.

? Startups in Africa raised $2.2B of funding in 2024
? Just under 30% of that went to startups in 1 country: Kenya ??
? 188 startups raised $1M or more last year

Insights: https://t.co/gASWhxZdod
Database: https://t.co/NtszshsqMY pic.twitter.com/r7ifK1QG5a

— Africa: The Big Deal (@AfricaTBD) January 7, 2025

In terms of regions, East Africa, driven by Kenya's performance, led for the second consecutive year with $725 million raised, or 33% of the total. Africa: The Big Deal explained that this is by far the market that attracted the most funds in Africa in 2024. Large transactions in the climate tech sector, especially with companies like d.light, SunCulture, and Basigo, boosted the figures.

West Africa came in second with $587 million, followed by North Africa ($478 million), Southern Africa ($397 million), and Central Africa ($5 million). West Africa also accounted for four of the seven countries that attracted between $10 million and $100 million in funding: Ghana ($68 million), Benin ($50 million), Côte d'Ivoire ($33 million), and Senegal ($22 million).

These results come amid a slowdown in funding within the startup ecosystem. Despite a slow start to 2024, African startups managed to rebound in the latter part of the year, highlighted by the emergence of two new unicorns: Nigeria's fintech Moniepoint and South Africa's Tyme.