Nigeria Leads Africa VC Deals Amid 22% Funding Decline

Venture capital funding for African startups decreased for the second consecutive year, dropping 22% to $3.6 billion in 2024, according to the African Private Capital Association (AVCA). Despite this decline, local investors gained prominence, becoming the largest group of participants at 31% of total investments, compared to 19% a decade ago. West Africa remained the most active region, contributing 23% of deal volume, with Nigeria leading at 16%. The fintech sector continued to dominate with 116 deals raising $1.4 billion, while clean technology and artificial intelligence also gained traction. The report highlights strategic adaptations within the market, such as higher quality deals and increased venture debt utilization, reflecting resilience amid global economic challenges. Overall, the fundraising environment showed strength, with $736 million raised across eight funds, marking a 41% year-over-year increase.