Kenya’s tech ecosystem continues gaining more trust from foreign investors than Nigeria, as indicated by the significant funding it attracted in 2024. Despite Nigeria’s longstanding reputation as Africa’s leading tech innovation hub, Kenya has attracted the most significant total annual funding in the tech ecosystem for the second consecutive year. In 2024, African startups raised $2.2 billion in equity, loans, and grants, 25% lower than the $2.9 billion raised in 2023.
Among the “Big Four” countries—South Africa, Kenya, Nigeria, and Egypt—Kenya drew the most investment, securing $638 million out of the $1.8 billion pooled by these countries. In comparison, Nigeria garnered $410 million, Egypt $400 million, and South Africa $394 million. Kenya’s growing dominance is significant, especially considering Nigeria’s Moniepoint and South Africa’s Tyme secured the two largest funding rounds with $110 million Series C and $205 million Series D, respectively.
Historically, Nigeria led in terms of capital invested in its digital sector. In 2021, Nigeria secured an impressive $1.7 billion in tech funds. However, in 2023, Kenya surpassed Nigeria in attracting tech funds, bringing in $800 million compared to Nigeria’s $410 million.
Kenya secures more investment
In 2022, Kenya secured $1.1 billion in funding, closely trailing Nigeria’s $1.2 billion. That same year, Egypt and South Africa raised $800 million and $555 million, respectively.
East Africa attracted the most funding for the second year in a row in 2024, with $725 million raised. Kenya accounted for 88% of this total, reflecting 29% of all funding on the continent. Western Africa, led by Nigeria, claimed the second spot with $587 million.
Northern Africa saw a significant decline, with funding dropping by 35% to $478 million, largely due to a 37% contraction in Egypt’s funding. Southern Africa experienced a similar drop, with funding falling by 36% to $397 million. Kenya’s tech ecosystem continues gaining more trust from foreign investors than Nigeria, as indicated by the significant funding it attracted in 2024.
This shift in investment trends underscores Kenya’s growing influence in Africa’s tech landscape.
Featured Image Credit: Photo by RDNE Stock project; Pexels
