Equity dominated, as nearly three-quarters of Africa’s 2024 startup funding came through equity financing

Key takeaways

Nearly three-quarters of all startup funding in Africa came from equity financing at 74.1%.
A significant 25.2% of funding was raised through debt, showing increasing reliance on loans and credit.
Only 0.7% of startup funding came from grants, reflecting limited non-dilutive capital support.
The high share of equity signals sustained investor belief in Africa’s startup ecosystem despite global headwinds.

In 2024, African startups' funding was overwhelmingly driven by equity, which made up 74.1% of total capital raised, showing strong investor appetite for ownership and long-term growth potential in the ecosystem. Debt financing accounted for 25.2%, underscoring the growing role of credit and structured loans as alternative funding routes for startups. Meanwhile, grants represented just 0.7%, highlighting the limited availability of non-dilutive funding on the continent. The dominance of equity reflects robust investor confidence in African innovation, while the rise of debt suggests that startups are increasingly diversifying their financing strategies to scale sustainably.

Source:

Intelpoint report: Funding for African Startups 2024

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Period:

2024

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Related Insights

African startups raised over $2B in 2024, led by financial services, with emerging sectors gaining traction

The financial services sector attracted the largest share of funding at $806.3m, accounting for more than 40% of total startup investment.
Renewable energy secured $377.1m, showing strong investor appetite for sustainable solutions in Africa.
Telecommunications raised $316.0m, while mobility & logistics brought in $222.8m, highlighting infrastructure-driven growth.
Electric vehicles ($87.9m), e-commerce ($50.3m), and crypto/blockchain ($35.3m) attracted meaningful investments, signalling diversification beyond traditional sectors.

Jumia's valuation grew from $550M in 2012-2014 to "unicorn" status with a €300M raise by 2015-2016

Jumia hit unicorn status between 2015 and 2016 after a €300M raise led by key global investors.
Its 2019 IPO raised $196M, making it the first African tech company to list on the NYSE.
Post-IPO backlash led to a 50% drop in stock price after Citron’s fraud allegations.
Between 2020 and 2021, Jumia exited multiple African markets and saw major investors like MTN and Rocket Internet cash out.
Jumia exited South Africa and Tunisia in 2024, signalling sharper market focus.

In 2024, 87.2% of Francophone Africa startup deals were equity-based

87.2% of startup deal value in Francophone Africa in 2024 came from equity funding.
Debt financing made up only 12.4% of the total startup capital raised, showing its limited role.
Grants accounted for just 0.4%, reflecting minimal non-dilutive support for startups.
Startups are more likely to trade ownership than take on debt or apply for grants.
The funding landscape remains investor-driven, with equity seen as the path to scale.
The near absence of grant funding may hinder innovation for startups that need early runway but aren't ready to give up equity.

Mobility startups recorded the highest startup funds in Francophone Africa in 2024, raising $20.50M with just two deals

Mobility led 2024’s startup funding in Francophone Africa with two deals at a value of $20.5M.
Fintech had the highest number of deals at 7, but with a lower total value than Mobility.
Cloud Services, Communications, and eCommerce each attracted over $3M from just one deal.
Agritech recorded the lowest funding at only $0.2M, despite being a vital sector.
Logistics, Healthtech, and HR/Payroll sectors saw two deals each, but with moderate funding.
Electric Motorcycle and Eyewear startups each secured $2M–$3M in one-off deals, showing niche interest.
Digital Health drew limited attention in both deal count and funding, signalling untapped or underdeveloped potential.

61.76% of financial sector deal volume in Francophone Africa was recorded between 2020–2024 H1, up from 22.06% in 2012–2015

Between 2020–2024 H1, 40.58% and 50.91% of deal volume went to consumer staples and consumer discretionary respectively, showing that everyday goods and lifestyle products are fast becoming investment magnets.
The utilities sector deal volume exploded in recent years, jumping from 21.62% in 2016–2019 to 70.27% in 2020–2024 H1, an indication that basic infrastructure services like energy, water, and power are now central to investment strategies.
78.57% of all deal volume in the information technology sector happened in the most recent period, suggesting that digital solutions and tech platforms are increasingly being backed by private capital.
The industrials sector also bounced back, with 46% of its deal volume coming in the 2020–2024 period.
Energy sector investment dropped from 66.67% to 33.33%, and real estate recorded no new deals after 2015.
Health care remained consistent across all three periods, securing exactly 33.33% of the deal volume each time, highlighting its stability, even if not standout growth.

Francophone African companies attracted $1.8 billion in private capital in 2021, the highest amount in the past 12 years

Francophone Africa attracted $1.8 billion in private capital in 2021, about 9x the previous year (2020).
That same year saw 34 deals, which is quite high when compared to some other years, indicating strong investor confidence.
In 2024, deal value amounted to just $0.1 billion, and deal volume to 19, pointing to a significant cooling in activity.
Between 2012 and 2015, the region saw low deal values, with both 2014 and 2015 recording just $0.01 billion in investments.
A notable spike occurred in 2017 with $0.7 billion invested across 17 deals, marking the first major surge before 2021's breakout.
Deal counts haven’t always aligned with capital volume. For instance, 2023 had 42 deals but only $0.4B, suggesting a trend of smaller-sized investments.