Moroccan startups have ended 2024 on a high note, securing a total of $70 million in funding. This achievement solidifies Morocco’s position as the fifth-largest startup ecosystem in Africa, according to the annual report ‘Africa: The Big Deal’. The report, which has been published since 2019, provides a detailed analysis of startup funding trends across the continent.
In terms of ranking, Morocco follows behind Kenya, Nigeria, Egypt, and South Africa, which collectively accounted for 84% of the total funding raised in Africa in 2024. While the $2.2 billion raised is a significant amount, it represents a 25% decrease from the previous year and a 52.17% drop compared to 2022. Ghana, Tanzania, Benin, Côte d’Ivoire, and Senegal also made it to the top 10 rankings, showcasing the diversity and growth of the African startup ecosystem.
East Africa continued to lead in attracting investments for the second consecutive year, with Kenya contributing 88% of the region’s $725 million total. Tanzania and Uganda also secured notable funding in the region. West Africa saw a significant improvement in its position, raising $587 million and experiencing only a minor 3% decline in funding compared to the previous year.
However, regions like North Africa and Southern Africa witnessed a decline in investment. North Africa’s funding decreased by 35%, primarily due to a significant drop in Egypt. Southern Africa also experienced a 36% decline, largely attributed to South Africa. Central African nations recorded minimal activity in 2024, marking the lowest levels ever observed in the region.
The report highlights the concentration of funding in the sector, with half of the total funding directed towards just 10 companies. Additionally, 188 startups secured $1 million or more in investments, showcasing the growth and potential of the African startup ecosystem.
Overall, Moroccan startups have made significant strides in securing funding and establishing themselves as key players in the African startup landscape. With continued support and investment, the future looks bright for innovation and entrepreneurship in Morocco and across the continent.
