From about $800 million in funding raised in the first half of 2024, startups funding hit the $1 billion mark in July.

This was disclosed by Africa: The Big Deal in the latest industry report, released yesterday.

The report stated that things happened a little faster than expected through two mega deals announced since the middle of the month. This includes the d.light’s new $$176 million securitisation facility and MNT-Halan’s $157.5 million raised to fuel their expansion.

“If we add NALA’s $40 million Series A from earlier this month and other smaller deals, we’re getting very close to $400 million, which will make July 2024 the most successful month in terms of fundraising in Africa in more than a year, and represents more than what was raise in the whole of Q2 2024,” it stated.

According to the report, while the pace of investments has not yet fully picked up compared to the past three years (the $1 billion mark was reached in May 2021, in April 2023 and as early as February 2022.

“This news is encouraging as it shows that 2024 might in the end deliver stronger results than 2019 and 2020 it is often benchmarked against (and when the $1 billion mark was only reached in November). Start-ups in Africa have already raised more funding than they had in 2020,” it stated.

Earlier in the month, Africa: The Big Deal had reported that funding to Nigeria, South Africa, Egypt, Kenya and other parts of Africa dropped by 31 per cent in H1, 2024.

It noted that overall, start-ups in Africa have raised $780 million, which represented a -31 per cent drop compared to H2 2023, and an even starker -57 per cent decline compared to H1 2023 if seasonality is to be noted.

Accordingly, four out of five dollars invested in start-ups in Africa went to ventures based in the Big Four. It stressed that is high, “but not the highest we’ve seen (92 per cent back in H1 2023). A third of all the funding went to Kenya alone.”

“Geographically, the big four – Nigeria, South Africa, Kenya, and Egypt – continued to dominate the funding landscape, attracting four out of every five investment dollars. Within this group, Kenya emerged as the frontrunner, securing a third of the total funding,” it said.

Although the concentration of funds in these key markets is significant, it is slightly below the peak of 92 per cent observed in H1 2023.

Out of the $780 million secured, Kenya garnered $244 million, representing 32 per cent of the total funding raised, while Nigeria received approximately $172 million. Egypt took a share of $101 million, and South Africa secured $85 million.

Over the last five years, from 2019 to 2023, Nigerian startups received the largest portion of funds raised by African startups, accounting for 29 per cent of the $15 billion total investments.

Specifically, Nigerian startups received $4.4 billion out of the $15 billion that flowed into Africa during this period.