In the first half of 2024, African tech startups secured only US$530 million in funding. This is a 56% decline compared to the same period in 2023.

A total of 406 startups raised a combined total of US$2.4 billion over the course of 2023. But in light of the challenges in the African market, approximately 35.2% of investors are shifting towards geographical diversification in 2024. This strategy seeks to mitigate risk while exploring new growth opportunities.

Despite the challenging landscape, this moment presents an opportunity for reflection and adjustment within the African startup ecosystem. Both startups and investors must navigate the shifting dynamics.

For investors, this could involve gaining deeper insights into local markets, strengthening partnerships with local entrepreneurs, and supporting more robust business models. For startups, this phase may act as a catalyst for innovation under pressure, driving them to prioritize efficiency and sustainability in their operations.