African startups raised $2.2 billion in 2024, a 25% decline from the $2.9 billion raised in 2023, according to a report by Africa: The Big Deal. Despite this decline, the ecosystem remained resilient, with 188 ventures raising $1 million or more during the year, a decrease of just 10% from the previous year.

The funding landscape in Africa was marked by a slow start in the first half of 2024, with the continent's ventures raising just under $800 million. This was described as the quietest semester of startup funding in Africa since late 2020. However, the second half of the year brought a strong rebound, with $1.4 billion raised, marking a 25% year-over-year increase and an 80% surge from the first half.

The recovery in the second half of 2024 was driven in part by two significant deals in Q4 involving Moniepoint and Tyme Group, which not only drove the numbers but also minted two new unicorns back-to-back. These back-to-back milestones were the first of their kind since early 2023.

Africa's tech ecosystem has emerged as a hub of innovation, drawing global attention with its rapid growth and ability to tackle pressing challenges through technology. However, the sector's journey hasn't been without hurdles, with global economic conditions casting shadows over its funding progress.

Despite the decline in total funding, the ecosystem's resilience is a testament to the growing importance of African startups in the global tech landscape. The continent's ventures have continued to attract significant investment, with many startups addressing pressing challenges in areas such as fintech, healthtech, and edtech.

The decline in funding can be attributed to various factors, including the global economic downturn and increased caution among investors. However, the strong rebound in the second half of 2024 suggests that African startups remain an attractive investment opportunity, with many ventures poised for growth and expansion in 2025.

As the African startup ecosystem continues to evolve, it will be important to monitor funding trends and identify opportunities for growth and innovation. With the continent's ventures playing an increasingly important role in the global tech landscape, it is likely that African startups will remain a key area of focus for investors and entrepreneurs alike.

In conclusion, while the decline in funding in 2024 may have been a setback for African startups, the ecosystem's resilience and the strong rebound in the second half of the year suggest that the continent's ventures are well-positioned for growth and expansion in 2025 and beyond.