Africa’s fintech sector has once again proven its dominance, attracting over $1 billion in funding in 2024, according to data from Africa: The Big Deal, a research firm tracking investments of $100,000 and above.

This funding accounts for 47% of all start-up investments on the continent, an increase from 42% in 2023 and the sector’s highest share since 2021.

Out of the $2.2 billion raised across all sectors, fintech maintained its appeal, with four companies—Moniepoint, Tyme, MNT-Halan, and M-Kopa—ranking among the top 10 fundraisers of the year.

Tyme’s emergence as a unicorn further underscored the sector’s recovery in the second half of 2024 after a less promising start.

The energy sector retained its position as the second most-funded industry, securing $440 million, or 20% of the total funding. However, this marked a 42% decline compared to 2023, reflecting broader global trends in climate tech investments.

Major contributors included d.light ($192 million) and Sun King ($87 million), which accounted for nearly two-thirds of the sector’s funding.

Interestingly, the energy sector’s share of climate tech investments declined from 72% in 2023 to 59% in 2024.

While overall climate tech funding decreased, non-energy climate tech investments remained relatively stable at $289 million, representing only a 4% year-on-year dip.

Logistics and transportation emerged as a resilient player, increasing its funding by 6% year-on-year to $288 million.

This sector’s share of total funding grew from 9% in 2023 to 13% in 2024, with companies like Moove, Basigo, and Spiro leading the way.

Other sectors, however, faced significant challenges. AgriTech and Food experienced a 44% drop in funding, while Healthcare saw an even steeper 61% decline.

Despite these setbacks, fintech, energy, and logistics collectively accounted for 80% of the total funding, reflecting investor confidence in these high-growth industries.

Africa’s fintech industry continues to demonstrate its capacity to attract substantial investments, securing its position as a key driver of economic transformation on the continent.