Egyptian Startups Lead Africa’s Venture Scene Despite Global Downturn in 2024

In 2024, Egypt not only accounted for over a third of the continent’s startup funding but also continued to attract significant interest from investors despite a 21% year-on-year decline in funding. MNT-Halan, a standout player in the fintech sector, made headlines with a record-breaking USD 157.5 million funding round, marking the largest investment in Egypt, Africa, and the MENA region for the year.On a broader scale, African startups faced a challenging year, raising a total of USD 1.1 billion, reflecting a 44% drop from the previous year. The continent saw a decrease in the number of funding rounds to 294, a 39% decline, indicating a pervasive cautiousness among investors. The retreat was further evidenced by an 18% drop in the number of active investors, totaling 385, and a 27% decrease in exit activities, with only 22 successful exits.

Looking ahead, the international venture capital landscape shows signs of a strategic shift. Allen Taylor, Managing Partner at Endeavor Catalyst, expressed optimism, stating, “2025 should be the year that some international VC capital returns to more frontier markets — think Egypt, Türkiye, and Pakistan — where it has been largely absent for the last few years.”

Regionally, the UAE maintained its dominance in transaction volumes with 188 deals, capturing 41% of all MENA transactions. Meanwhile, Saudi Arabia led in total transaction value, with Saudi startups amassing USD 750 million, showcasing the kingdom’s growing influence in the tech and innovation spheres.

Dr. Hossam El Gamal, an economic strategist, noted that “Egypt’s continued strength in the startup scene is a testament to its vibrant entrepreneurial ecosystem and supportive government policies.” As global markets stabilize, Egypt is poised to leverage its strategic position and talent pool to attract even greater investment flows in the coming years.