According to data from the Africa: The Big Deal platform, African start-ups raised $180 million in November 2024, an amount excluding exits, made up of $122 million in debt (68%), $55.5 million in private equity (31%), and $2.5 million in grants (1%).
This performance is part of a global slowdown in venture capital investment, marking a reorientation of financial flows towards strategic sectors.
Sustainable energy in the spotlight!
The leading transaction of the month was carried out by Sun King, a Nigerian company specializing in off-grid solar energy.
According to the source, the company secured a USD 80 million loan from the International Finance Corporation (IFC), representing 44% of the total raised in November.
This operation,” continues the document, ”testifies to the sustained interest of investors in sustainable energy solutions in Africa, a continent facing major energy challenges.
Sector diversification: fintech and connectivity!
Other notable transactions include:
– Mawingu, an Internet service provider based in Kenya, which raised USD 15 million in debt and equity to finance its expansion in East Africa.
– Djamo, an Ivorian fintech, which raised USD 13 million in a Series B financing round, bringing the number of such deals to just seven in 2024, down from 14 in 2023.
A market in transition!
In parallel, the month saw two exit announcements:
– Egyptian start-up Elmawkaa, active in construction technologies, was acquired by Saudi company Ayen.
– In the energy sector, SteamaCo and Shyft Power Solutions merged to strengthen their competitiveness.
Annual momentum on the wane!
Overall, since January, African start-ups have raised USD 1.86 billion, divided between USD 1.2 billion in equity (64%), USD 635 million in debt (34%) and USD 33 million in subsidies (2%).
Although the USD 2 billion threshold is within reach by the end of December, experts report that this performance marks a significant drop from the USD 2.8 billion raised in 2023, reflecting persistent tensions on capital markets.
However, the sectoral and geographical breakdown of this financing shows the resilience of key sectors such as energy, fintech and digital infrastructure, confirming their strategic role for the continent’s economic future.
Flory Musiswa