Nigeria leads as African venture capital nets $3.6bn in 2024
The African Private Capital Association has announced the release of the 2024 Venture Capital in Africa Report, showing that Africa’s entrepreneurial ecosystem collectively secured 487 deals in 2024. This was distributed as 427 venture capital deals with a value of US2.6bn and 60 venture debt deals worth US1bn. This comprehensive analysis provides in-depth insights on […]
The African Private Capital Association has announced the release of the 2024 Venture Capital in Africa Report, showing that Africa’s entrepreneurial ecosystem collectively secured 487 deals in 2024.
This was distributed as 427 venture capital deals with a value of US2.6bn and 60 venture debt deals worth US1bn.
This comprehensive analysis provides in-depth insights on market trends, fundraising, exits and investor dynamics, backed by AVCA’s unrivalled decade-long data sets.
The sixth edition of AVCA’s annual report reveals that Africa experienced a market correction a year after global markets, with the continent reaching its funding low in H1 2024—highlighting the delayed but pronounced impact on deal-making during a period of inflation, supply chain disruptions and geopolitical shocks.
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According to the report, in 2024, Africa’s venture ecosystem faced a 22% drop in deal volume and a 28% decline in deal value.
This pronounced downturn came approximately one year after global markets, highlighting a delayed but significant adjustment.
While global venture funding saw modest recovery with a 6% increase in deal value, Africa’s sharper contraction placed it at the opposite end of the growth spectrum compared to other regions.
The report further stated that venture debt lenders comprised only 12% of deal volume yet generated 37% of VC deal value in 2024.
The 3% YoY increase in deal value and volume signals continued investor appetite for the asset class.
The geographic distribution reveals that West Africa maintained its lead as the most active region for the fourth consecutive year, accounting for 23% of total deal volume, with Nigeria leading at 16%.
The ‘Big 4’ markets (Nigeria, Egypt, Kenya, South Africa) represented 55% of volume and 64% of value.
FinTech remained dominant with 116 deals raising US1.4 billion (34% of all tech-enabled rounds).
Clean & ClimateТech rose to 13% of tech-enabled deal volume, up from a 7% five-year average, while AI made its first appearance among the top four most funded verticals with 42 deals raising US108 million.
In a significant milestone, African investors emerged as the single largest group of active participants in VC, representing 31% of the total investor pool compared to 19% a decade ago.
This underscores the momentum in domestic capital formation despite overall investor participation declining 21% from 2023 to 614 active investors.
The fundraising environment showed remarkable resilience, with eight funds closing at US736 million in 2024 alone, a 41% YoY increase that underscores the positive, long-term growth of Africa’s VC ecosystem despite global headwinds. Since 2015, 35 fund managers across 41 funds have raised US$2.7 billion in final closes, reflecting a 25% CAGR.
Abi Mustapha-Maduakor, CEO of AVCA, said: “The data demonstrates how Africa’s venture ecosystem is responding to global challenges with notable resilience. While overall funding has contracted, we’re seeing strategic adaptations—higher quality deals, sector diversification beyond fintech, increased venture debt utilisation, and the strengthening role of African investors.”