GDP growth remains positive across all five markets. While Kenya, Egypt and Morocco saw their inflation rates easing, Nigeria and Ghana have work to do to tame rising rates. Kenya lowered its MPC rate in December while Nigeria raised its rate, the rest maintained October rates. Morocco continues to have the highest unemployment rate while Ghana has the lowest.
November was a slow month for VC compared to October, with 16 startups raising over $140M+ in venture capital, compared to $290M+ from 22 startups in October. Nigeria was again notable for recording the highest amount of VC raised in November – +$80M. It was a surprise for Ghana to fail to record a single startup raising capital in November.
There is still reduced startup activity in the form of mergers, acquisitions, partnerships and rebrands in November (3).
Ghana’s new president is expected to get the country back to economic stability, via cutting inflation, stabilizing the cedi and managing foreign debt.
Biden’s visit to Africa shows America’s heightened bid to counter Chinese influence on the continent, through financial support for building the Lobito corridor railway that spans 3 African countries, transporting minerals used in EV manufacturing.
November recorded a reduced number of startups raising capital compared to October (22), with the amount raised being $148.8M less than that raised in October ($292.7M).
Egypt had the highest number of startups raising capital (7) but Nigeria recorded the highest amount raised overall ($80M) – by 1 startup.
For the first time in H2, Ghana failed to record a startup raising capital.
For the first time this year, fintech failed to lead in the number of startups raising capital (2), with energy (3) taking the lead.
African startups have raised $1.86 billion in 2024 to date, split across equity ($1.2 billion, 64%), debt ($635 million, 34%), and grants ($33 million, 2%). While the $2 billion mark may be reached by the end of 2024, total funding is set to fall short of the $2.9 billion raised in 2023.
