African startups raised $2.2 billion in funding in 2024, a 25% decline from the $2.9 billion secured 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 slow start in the first half of 2024, with only $800 million raised, was followed by a strong rebound in the second half, with $1.4 billion secured. This marked a 25% year-over-year increase and an 80% surge from the first half. The recovery made the second half of 2024 the second-strongest semester since the onset of the funding slowdown.

The African 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.

Notable deals in the fourth quarter of 2024, involving Moniepoint and Tyme Group, drove the numbers and minted two new unicorns back-to-back. These back-to-back milestones were the first of their kind since early 2023.

The decline in funding can be attributed to the global economic conditions, which have affected startup ecosystems worldwide. Despite this, the African startup ecosystem has shown resilience, with a strong rebound in the second half of the year.

The report highlights the importance of innovation and entrepreneurship in Africa, with startups playing a crucial role in addressing pressing challenges and driving economic growth. The decline in funding serves as a reminder of the need for continued support and investment in the sector.

As the African startup ecosystem continues to evolve, it will be important to monitor funding trends and identify opportunities for growth and innovation. The sector's ability to adapt and respond to global economic conditions will be crucial in determining its future success.

In conclusion, while the decline in funding may be a setback, the African startup ecosystem has shown remarkable resilience and adaptability. As the sector continues to grow and evolve, it is essential to maintain a focus on innovation, entrepreneurship, and investment to drive economic growth and development in Africa.