Save for Kenya, GDP growth remained positive in the other four markets. Except forEgypt, all other markets recorded rising inflation. Kenya and Morocco lowered their MPC rates in December while the rest maintained their rates. Morocco continues to have the highest unemployment rate while Ghana has the lowest.
December recorded the lowest amount of VC raised since June, with only 11 startups raising less than $25M in venture capital, compared to over $140M in November. It was a surprise for both Kenya and Ghana to fail to record a single startup raising capital in December.
There was also reduced startup activity in the form of mergers, acquisitions, partnerships and rebrands in December (3).
Ghana’s new president hopes to revitalize the economy through a series of policy changes, but faces challenges of a huge foreign debt.
Trump’s move to scale down on financing climate and health by withdrawing from the WHO and Paris Agreement will have a significant effect on foreign funding in Africa, reversing gains in the fight against climate hazards and dangerous diseases. This will have an economic impact as African governments will need to allocate more funds to these sectors.
December recorded the lowest number of startups (11) raising capital since June and 5 lower than in November (16), with the amount raised being also the lowest since June.
Morocco and Nigeria had the highest number of startups raising capital (3 each) while Kenya and Ghana failed to record a single startup securing funding. Egypt had only 1 startup raising capital.
Fintech continued to dominate in the number of startups raising capital (5).
In 2024, Nigeria reclaimed its top spot in equity funding ($520M) and deal count (103), while Egypt recorded the fastest growth in equity deals (+48% YoY). Kenya dominated debt funding with 38% of total amounts and 31% of deals. Fintech remained the leading sector, securing 60% of equity funding, with growth in both deal count (+16%) and funding (+59%), driven by four megadeals.
