In 2024, the fintech sector maintained its position as the most funded in African tech startups, according to the latest report from Disrupt Africa. Despite its continued popularity, the sector experienced a notable downturn, marking its second consecutive year of decline. Fintech funding in 2024 dropped significantly, with 51 startups securing nearly $500 million, reflecting a 60% drop in the number of funded startups and a 40% decrease in funding compared to 2023.
The overall venture funding landscape in African tech also declined sharply, with a total of $1.1 billion raised by 200 startups, a steep fall from $2.4 billion raised by 406 startups in the previous year. Nevertheless, fintech’s share of the total remains stable due to similar or worse performances from other sectors. Mobility emerged as the second most funded sector, seeing a 14.4% increase in investment to $231.8 million.
Significant fundraising rounds by companies such as Moniepoint, MNT-Halan, NALA, and Yellow Card in the fintech space, and mobility ventures like Moove and BasiGo, played a crucial role in maintaining the sector’s relative standing amidst a challenging funding environment.
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