Modest Gains Amidst Record-Breaking African Fundraising in July 2024

Despite Africa experiencing a record-breaking fundraising month in July 2024, with $420 million raised, Tanzania's start-up ecosystem saw modest gains, raising $9 million in H1 2024. While this is significantly lower than Kenya's $244 million, it highlights the country's potential for growth. Continued efforts to enhance the start-up environment and attract investments could boost Tanzania's future fundraising performance.

Start-up Fundraising in Africa: Focus on Tanzania

July 2024 Fundraising Overview

• Total Fundraising: $420 million (excluding exits)
  • This is the highest monthly performance in 14 months.
  • The amount raised in July exceeds the total for Q2 2024.
  • It is 2.5 times the average monthly amount raised over the past 12 months.
  • This is the best month of July since tracking began in 2019.

Breakdown of Fundraising Activities

• Number of Ventures: 47 ventures raised at least $100k each in July.
  • This is the second-best month in 2024, following May.
  • 16 ventures raised at least $1 million, aligning with the monthly average in H1 2024.

Major Deals in July 2024

• d.light’s Securitization Facility: $176 million
• MNT-Halan’s Raise: $157.5 million
• NALA’s Series A: $40 million
  • Combined, these three deals represent 90% of the total funding raised in July.

Exits

• Notable Exit: Quicket’s acquisition by Ticketmaster (details not included in the $420 million).

Year-to-Date Performance

• Total Funding in 2024: $1.2 billion
  • This comfortably surpasses the $1 billion mark.
  • The amount raised in 2024 so far has topped the total raised in 2020.
  • The next milestone is $1.4 billion raised in 2019, which is now within reach.

Country-Specific Fundraising in H1 2024

Distribution Among Big Four Countries

• Percentage of Total Funding: 79% of total funding went to start-ups headquartered in one of the Big Four countries (Kenya, Nigeria, South Africa, and Egypt).
  • This is slightly below the 5-year average of 83%.
  • In H1 2023, the Big Four countries attracted 92% of the region’s funding.

Kenya's Dominance

• Total Raised by Kenyan Start-ups: $244 million
  • Kenya leads for the third consecutive semester.
  • 32% of all funding raised by African start-ups in H1 2024 went to Kenya.
  • Kenya's share of total funding grew by 5 percentage points compared to 2023.
  • 86% of all funding raised in Eastern Africa went to Kenya (89% in 2023).

Eastern Africa Funding

• Total Funding in Eastern Africa: $285 million (37.5% of total funding on the continent).
  • Uganda raised $19 million.
  • Tanzania narrowly missed the $10 million mark with $9 million.
  • Sudan, Ethiopia, and Rwanda each raised less than $5 million.

Implications for Tanzania

• Performance in H1 2024: Tanzania raised $9 million.
  • This is significantly lower than Kenya's $244 million.
  • It indicates that while there is activity in Tanzania's start-up ecosystem, it remains relatively small compared to its regional peers.

Hence

• Growth Potential: The impressive fundraising figures for July 2024 indicate a robust and growing start-up ecosystem in Africa, especially in the Big Four countries.
• Tanzania's Position: Despite Tanzania's relatively modest fundraising performance, the country shows potential for growth. Efforts to improve the start-up ecosystem, attract more investments, and support innovation could enhance Tanzania’s share of regional funding in the future.