• African-based investors accounted for 31% of all VC backers in 2024, up from 29% the year before
• Total venture capital activity in Africa dropped to $2.6 billion, reflecting a global investment slowdown
• Median deal size rose sharply despite fewer transactions, with debt financing continuing to grow

African investors played a bigger role in Africa’s venture capital scene in 2024 than ever before. For the first time, they were the most active group backing startups on the continent, outpacing investors from North America and Europe, according to a new report from the African Private Equity and Venture Capital Association (AVCA), released on March 31.

African-based investors accounted for 31% of all investors who put money into African companies last year. That share has grown steadily over the past decade—from 19% in 2015 to 29% in 2023—before hitting this new high in 2024. In total, 188 African investors were active across the continent in 2024, compared to 176 from North America, 146 from Europe, 54 from Asia-Pacific, 44 from the Middle East, 5 from Latin America, and 1 from the Caribbean.

The number of active investors overall fell to 614, a 21% drop from the previous year. That decline reflects a slowdown in global venture capital, as investors grow more cautious in response to global economic uncertainty. But African investors, especially those based in South Africa (49), Egypt (33), Nigeria (28), and Kenya (25), stepped up and helped stabilize the market.

Their growing presence brought a sense of resilience to African startups, helping soften the impact of shrinking international capital flows. That support became more important as overall investment in African businesses dropped. The report shows that venture capital investors—both local and foreign—poured $2.6 billion into the continent in 2024, down from $3.6 billion in 2023.

However, if debt financing is included, which has been growing faster than equity in recent years, total funding reached $3.6 billion. Around 80% of that went to tech-enabled startups, while the rest supported more traditional businesses.

Debt funding rose slightly, with total deal value hitting $1 billion, up 3% from 2023. This includes instruments such as mezzanine financing, direct loans, and convertible notes. Across the year, there were 487 recorded transactions: 427 equity deals, down 21% year-on-year, and 60 debt deals, up 5%.

Despite the overall slowdown, the size of the average deal increased. The median equity deal size rose 32% to $2.5 million, while the median debt deal size climbed 40% to $7.5 million.

The report also highlighted eight so-called “mega-deals”—each valued at $100 million or more. Together, they totaled $1.3 billion, or about 36% of all equity and debt investments. This included a $250 million raise by Tyme Group, a South African digital bank backed by billionaire Patrice Motsepe, and a $110 million round by Nigerian fintech Moniepoint.

Southern Africa attracted the most capital last year, bringing in $754 million. It was followed by North Africa ($561 million), West Africa ($493 million), East Africa ($472 million), and Central Africa ($9.2 million). Companies operating across multiple regions received $1.3 billion.

Finally, the number of exits remained stable. A total of 26 exit deals were recorded in 2024, the same as in 2023, showing that some investors are still finding paths to returns despite a more cautious market environment.