African investors played a more prominent role in the continent’s startup scene in 2024 than ever before, emerging as the most active backers of venture capital deals for the first time.

According to a report released by the African Private Equity and Venture Capital Association (AVCA) on March 31, investors based in Africa accounted for 31% of all firms that invested in African startups last year, surpassing those from North America and Europe.

That figure marks a significant rise from 29% in 2023 and nearly doubles their share from 2015, when just 19% of active investors were locally based.

In total, 188 African investors participated in deals across the continent in 2024, ahead of 176 from North America and 146 from Europe.

The majority of African investors were headquartered in South Africa (49), Egypt (33), Nigeria (28), and Kenya (25).

While the total number of venture capital investors globally dropped by 21% to 614, reflecting a broader slowdown due to economic uncertainty, African investors stepped up.

Their growing involvement provided critical support at a time when international capital flows were retreating, helping many startups weather the storm of a cooling investment landscape.

Overall, venture capital funding in Africa fell to $2.6 billion in 2024, down from $3.6 billion the previous year.

But when debt financing is factored in, total capital raised climbed back to $3.6 billion.

Around 80% of this funding went to tech-enabled startups, with the remaining 20% directed to more traditional businesses.

Debt financing in particular saw modest growth, with $1 billion in deal value recorded, up 3% from 2023.

This included mezzanine financing, direct loans, and convertible notes.

In total, there were 487 transactions in 2024, comprising 427 equity deals (down 21% year-over-year) and 60 debt deals (up 5%).

Despite the dip in deal volume, investment sizes increased.

The median equity deal grew by 32% to $2.5 million, while the median debt deal surged by 40% to $7.5 million.

The year also saw eight mega-deals, valued at $100 million or more, collectively accounting for $1.3 billion or 36% of all investment.

Among them was a $250 million raise by Tyme Group, a South African digital bank backed by billionaire Patrice Motsepe, and a $110 million round raised by Nigerian fintech Moniepoint.

Southern Africa led the continent in capital raised with $754 million, followed by North Africa at $561 million, West Africa with $493 million, East Africa at $472 million, and Central Africa, which trailed at $9.2 million.

Companies operating across multiple regions drew the largest share of capital, securing $1.3 billion.

Meanwhile, the number of investor exits held steady.

AVCA recorded 26 exit deals in 2024, the same as in 2023, suggesting that despite market caution, viable pathways to returns are still available for strategic investors.