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 the decline, 188 ventures raised $1 million or more, only a 10% decrease 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 raised. 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.

Despite the decline in total funding, the ecosystem remained resilient, with a significant influx of capital. The strong rebound in the second half of the year suggests that African startups are adapting to the challenging global economic conditions.

The decline in funding can be attributed to a combination of factors, including the global economic slowdown and the increasing competition for funding. However, the African startup ecosystem has shown its ability to adapt and innovate, with many startups finding ways to navigate the challenging funding landscape.

The report highlights the importance of the African startup ecosystem, which has emerged as a hub of innovation and growth. The sector's ability to attract significant funding, despite the decline, is a testament to its potential and resilience.

As the African startup ecosystem continues to evolve, it will be important to monitor its progress and identify opportunities for growth and innovation. The sector's ability to adapt to changing global economic conditions will be crucial to its success in the coming years.

In conclusion, the decline in African startup funding in 2024 is a setback, but it also highlights the sector's resilience and ability to adapt to challenging conditions. As the ecosystem continues to evolve, it is likely to remain a hub of innovation and growth, attracting significant funding and attention from around the world.