Founders continue to raise debt as funding decline persists, according to the State of Tech in Africa report
- Founders only raised $779.7 million in H1 2024, the lowest amount since 2020.
- The decline in equity deals continues despite startups refocusing on becoming profitable and taking cost-cutting measures including layoffs.
- Benin and Ghana raised more funds than Nigeria and South Africa in Q2 2024.
The decline in venture capital funding in Africa's tech ecosystem is concerning for the growth and development of the industry. Despite efforts by startups to become profitable and reduce costs, the decline in equity deals suggests a lack of investor confidence. It is important for stakeholders to address the challenges faced by the sector and explore strategies to attract more funding.
