In a significant development for the African startup ecosystem, venture capital funding into African startups in 2024 has crossed the coveted $1 billion mark. This achievement, highlighted in a communication from Africa the Big Deal, underscores the region’s growing attractiveness to investors. While the milestone was reached ahead of expectations, it still trails previous years’ performances when similar achievements were made as early as February 2022 and May 2023.
Key Investments Propel Milestone:
- Kenyan Clean Energy Company, d.light
- In a monumental move, Kenyan clean energy company, d.light, secured a substantial $176 million securitization facility. This funding initiative, facilitated by social impact-focused asset management company, African Frontier Capital, is multi-currency in nature. Its primary objective is to provide access to reliable and renewable energy to an estimated six million individuals in Kenya, Uganda, and Tanzania over the next three years.
- Egyptian Unicorn MNT-Halan
- Another significant investment contributing to the milestone was Egyptian unicorn MNT-Halan’s raise of $157.5 million. Notable participants in this raise include the International Finance Corporation (IFC) pledging $40 million, alongside contributions from Development Partners International (DPI), Lorax Capital Partners, funds managed by Apis Partners LLP, Lunate, and GB Corp. This fresh infusion of capital is anticipated to fuel MNT-Halan’s upcoming geographical expansion plans.
Accomplishing the $1 Billion Milestone:
“We can now confidently say that the $1 billion in startup investments for 2024 has been reached! The ecosystem closed H1 2024 with just under $800 million raised (excluding exits), and it was only a matter of time until it crossed the $1 billion mark. Things happened a little faster than expected though thanks to two mega deals announced since the middle of the month,” as per the Africa the Big Deal report.
This marks a pivotal moment for African startups, signaling continued growth and investor confidence in the region’s entrepreneurial landscape.