NAIROBI, Kenya, Jan 14 – Most of the funds raised by African startups in 2024, including in Kenya, came from entities owned by men, highlighting a stark gender disparity in the continent’s startup funding ecosystem.
According to the latest Africa: The Big Deal newsletter, female CEOs secured just $48 million (Sh6.2 billion) in funding last year, a fraction of the $2.2 billion ( Sh284,35 billion) raised by their male counterparts.
“Absolute levels so low hadn’t been registered since 2020. Even more concerning is the fact that, in relative terms, female CEOs received only 2 percent of the total investment last year, a share that has never been so small,” the report noted.
The report also highlighted the underrepresentation of women in leadership roles in Africa’s startup scene.
“As of September 2024, only four of the 100 most-funded startups in Africa since 2019 had a female CEO. Since Kobo360’s Cikü Mugambi resigned in November, that number is now down to three.”
Kenyan startups raised Sh82.3 billion ($638 million) in 2024, securing the top position in Africa’s startup funding rankings, underscoring Kenya’s growing dominance in the continent’s tech and innovation space, driven by significant investments in the climate tech sector. Companies like d.light, SunCulture, and BasiGo played key roles in attracting substantial funding.
Nigeria ranked second, raising Sh52.9 billion ($410 million), followed by Egypt with Sh51.6 billion ($400 million) and South Africa at Sh51 billion ($394 million).
In West Africa, Ghana and Benin followed Nigeria, securing Sh8.8 billion ($68 million) and Sh6.5 billion ($50 million), respectively. Meanwhile, Central Africa lagged significantly, attracting just Sh687 million ($5 million) in funding, a drop of over 10 times compared to 2023.
The gender funding gap was equally pronounced in founding teams. In 2024, only $123 million went to gender-diverse founding teams, while $21 million was raised by solo female founders or all-female founding teams. In stark contrast, solo male founders secured $430 million, and all-male founding teams raised $1.6 billion.
“In percentage terms, solo female founders or all-female founding teams accounted for just 1 percent of total funding, while gender-diverse teams received 5.5 percent. Solo male founders and all-male founding teams dominated, taking 95.5 percent of total funding,” the report added.
