US rate cut could revitalise foreign inflows into African startups, increase debt deals
- U.S. Federal Reserve cut interest rates by 50 basis points, the first cut in four years.
- Investors retreated from Africa as interest rates rose in 2023, leading to a drop in funding.
- Only four Series B rounds were completed in H1 2024, indicating a decline in capital flow.
The U.S. Federal Reserve's decision to cut interest rates presents a potential turning point for African venture capital, but it is essential to monitor currency stability and investor sentiment over the coming months. While there is cautious optimism, the actual impact on funding and growth in Africa will depend on various external factors, including global economic conditions and local market dynamics.
