FinTech Leads Africa’s H1 2024 VC Landscape, While Agriculture and Logistics Gain Momentum
The first half of 2024 has revealed key shifts in Africa’s venture capital landscape, with FinTech maintaining its top spot despite a notable dip, while Agriculture and Logistics sectors show significant growth.
FinTech continued to dominate Africa’s venture capital (VC) scene, securing 48% of total funding, a slight drop from 51% in H1 2023. Major deals, such as Moove Africa’s $100 million investment, played a crucial role.
However, the sector experienced a 59% year-on-year funding decline, signaling growing investor caution amid global economic uncertainties.
Agriculture emerged as a standout performer, climbing to the third most-funded industry, largely driven by SunCulture’s $28 million deal. This trend highlights an increased investor focus on sectors with socio-economic impact, particularly those addressing food security.
Transport and Logistics also saw a 36% year-on-year funding increase, underpinned by significant investments like Roam’s $14 million round.
In contrast, the Healthcare sector saw a steep decline due to a lack of significant Series B investments, marking a challenging period for scaling healthcare startups.
E-commerce/Retail, previously a robust sector, recorded no exits for the first time since H1 2017, reflecting a regional trend and underscoring the need for strategic pivots.
The trends from H1 2024 suggest that while FinTech remains a dominant force, the sector’s growth is slowing.
Meanwhile, Agriculture and Logistics present promising opportunities for investors. As African startups and investors navigate the evolving landscape, adaptability and strategic foresight will be key to capitalizing on emerging opportunities in the second half of the year.
