Despite global economic challenges, Africa’s startup ecosystem demonstrated resilience in 2024, raising $2.2 billion, a 31 percent decline from 2023. However, October marked a recovery, with $254 million raised, the highest since 2019. Kenya led with $638 million, while Nigeria regained its top spot with $520 million.
Despite the overall dip, the number of megadeals (over $100 million) increased by 43 percent, totalling $1.1 billion. Analysts attribute this shift to a more selective investment approach, focusing on high-potential startups.
In 2024, Nigeria’s Moniepoint and South Africa-rooted Tyme achieved unicorn status, meaning their valuations exceeded $1 billion, bringing Africa’s total number of unicorns to nine, including Jumia, Flutterwave, Chipper Cash, Andela, OPay, Wave, and Interswitch.
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It highlights Africa’s growing ability to foster high-value companies despite global economic challenges, signaling investor confidence in the region’s innovation and growth potential.
Africa’s startup ecosystem: Resilience amid economic challenges
On Thursday, Uche Aniche, Convener of #StartupSouth, hosted the 2025 Preview Africa Startup & VC Landscape conference virtually. The conference brought together over 100 prominent founders, venture capitalists, limited partners, development finance institutions, and the public to chart the future of African tech. Despite funding headwinds, the outlook for 2025 is bright.
Tomi David, Collaborator-in-Chief at TVC Labs, described angel investors as the “backbone of the continent’s innovation ecosystem,” noting their $20 million investment in 2024, often in underserved regions.
Highlighting successes in renewable energy and agri-tech, David urged investors to focus on impact-driven sectors like health and climate tech, adding, “Diversity isn’t just moral—it’s a competitive advantage.” He championed collaboration, saying, “If you want to go far, go together.”
Leadership, collaboration, and innovation: Driving Africa’s startup future
Fenibo Fubara, Special Assistant to the Rivers State Governor, emphasised the state’s investment potential and people’s resilience.
Meanwhile, Judith Atibi, broadcast journalist Newscentral TV, and Dr Evans Olaniyi, a Nigerian economist, public policy analyst, and university lecturer teaching at Pan-Atlantic University, Lagos, Nigeria, explored Africa’s macroeconomic outlook for 2025, focusing on inflation management, fiscal policies, and debt sustainability.
Olaniyi highlighted moderate growth in Africa’s “Big 4 Startup” nations—Kenya, Nigeria, and South Africa—driven by non-oil sectors like fintech, agriculture, and technology. He stressed the need to navigate risks from high inflation, exchange rate volatility, and fiscal uncertainties.
Atibi called for public-private collaboration and policy stability to spur growth, as well as the importance of efficient regulations and co-investment models to drive innovation and address systemic challenges.
Isioma Utomi, CEO of Catalyst Experience Solutions, stressed the central role of leadership, declaring, “Leadership is essential at every stage of a startup’s journey, from early growth to scaling into sustainable businesses.”
She called 2025 “the era of adaptive leadership,” urging founders to embrace rapid change, build future-ready teams, balance innovation with execution, and cultivate resilience. “Leadership development is the differentiator between startups that thrive and those that stall,” she concluded, emphasising its critical role in navigating Africa’s evolving startup landscape.
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2025 outlook: AI, talent, and macroeconomic strategies for growth
Elijah Affi, Sherif Nessim, and Wiatta Thomas explored the growth of the startup ecosystem in the GCC, North Africa, and Francophone regions, crediting regulatory policies like sandbox licences and open banking for driving progress.
They emphasised the role of cross-border trade, especially in agriculture and logistics, and stressed the importance of researching local markets, engaging regulatory bodies, lobbying for favourable policies, and promoting inter-African trade for sustainable expansion.
Yewande Adewusi and Dr Dotun Olowoporoku explored African startups’ challenges, focusing on valuation and revenue. They noted that startup valuations are often based on potential future growth rather than current earnings.
They highlighted the significance of a strong team, with Yewande stating, “A good team can turn around a bad product.” Timing in technology and the need for startups to adapt to evolving market conditions were also emphasised.
The duo touched on international expansion, with Mr Olowoporoku arguing that “it’s not necessary for a startup to expand globally to become successful.” They wrapped up by stressing that investors should assess startups based on their future potential.
Ngozi Chukwu, Bradley Shaw, Keith Jones, and Sadaharu Saiki discussed Africa’s role in AI, agreeing the continent must choose whether to compete or remain passive transmitters.
Bradley stressed the need for infrastructure to help entrepreneurs leverage AI, while Keith shared optimism, citing how Kenyan businesses use AI tools more than students at MIT or Harvard. Sadaharu urged a focus on solving fundamental African problems with AI. ‘Africa should compete, not just consume,’ they concluded.
In another panel, Adora Ikwuemesi discussed Africa’s tech talent paradox. Panelists Sarah FitzMorris, Shamim Walusimbi, and Franklin Ali highlighted challenges like talent retention, workplace environments, and the need for public-private partnerships to build pipelines.
‘Education and training are critical,’ they noted, exploring AI’s role in reshaping coding. The session ended with a call for organisations to innovate and adapt to the evolving tech landscape.”
Resilience, collaboration, and leadership will be key to unlocking Africa’s potential in 2025. With opportunities in impact-driven sectors and advancements in AI and talent, the continent is poised to lead in global innovation. This year demands decisive action to drive sustainable growth and shape Africa’s tech future. “If you want to go far, go together.”