Moroccan startups concluded 2024 on a high note, raising an impressive $70 million and cementing the country’s reputation as one of Africa’s most dynamic and innovative ecosystems. This achievement positions Morocco as fifth among the continent’s leading startup hubs, according to the annual ‘Africa: The Big Deal’ report.
A Snapshot of Africa’s Startup Ecosystem Rankings
Morocco’s $70 million fundraising effort places it behind Kenya ($638 million), Nigeria ($410 million), Egypt ($400 million), and South Africa ($394 million). Together, these four nations accounted for a staggering 84% of Africa’s total startup funding in 2024, which amounted to $2.2 billion across equity, debt, and grants (excluding outflows).
While the $70 million milestone is notable, Africa’s overall startup funding landscape experienced a contraction. The $2.2 billion total represents a 25% decline from the $2.9 billion raised in 2023 and a 52.17% drop from the $4.6 billion raised in 2022. Morocco’s performance stands out as a relative bright spot amidst these broader declines.
Following Morocco in the top 10 are Ghana with $68 million, Tanzania with $53 million, Benin at $50 million, Côte d’Ivoire with $33 million, and Senegal, which raised $22 million.
Regional Highlights
East Africa once again emerged as the top-performing region in 2024, attracting $725 million in investments—accounting for one-third of all funds raised across the continent. Kenya’s startups were the driving force, contributing 88% of the region’s total and 29% of Africa’s overall funding. Despite this dominance, the region’s total investments fell by 18% compared to 2023. Tanzania and Uganda also made notable contributions, raising $53 million and $19 million, respectively.
West Africa claimed second place, raising $587 million and representing 27% of Africa’s total startup funding in 2024. The region’s rise from fourth place in 2023 is attributed to strong economic performance in countries like Nigeria, Ghana, Benin, Côte d’Ivoire, and Senegal. Impressively, West Africa’s funding only declined by 3% year-over-year, bucking the steeper downward trend seen in other regions.
North Africa raised $478 million in 2024, accounting for 22% of Africa’s total funding. However, this marks a 35% decline from 2023, driven primarily by a 37% drop in Egypt’s funding. Egypt contributed 84% of North Africa’s total, and the report highlights that Morocco’s relatively stable performance could not offset the region’s broader decline.
Southern Africa secured $397 million in 2024, representing 18% of Africa’s total. The region’s 36% decline from 2023 was largely due to a 34% drop in South Africa’s funding, which accounts for 99.4% of the region’s total investments.
Central Africa recorded the lowest investment levels in 2024, raising just $5 million—a tenfold decrease from 2023 and the lowest ever observed for the region.
The ‘Africa: The Big Deal’ report underscores the concentration of funding within the sector, noting that half of the total funds raised were directed to just 10 companies. Meanwhile, an additional 188 startups secured investments of $1 million or more.
Despite the challenges faced by Africa’s startup ecosystem in 2024, Morocco’s performance highlights its resilience and potential for growth. As the country continues to attract investment and foster innovation, it is well-positioned to play a key role in shaping the continent’s entrepreneurial landscape in the years to come.
Main Image: Launch Base Africa
