Africa Startup Funding 2024: Female CEO & Female Founder Representation Reached an All-time Low
2024 has been a terrible year for women-led and women-founded businesses in African startup funding, with representation hitting an all-time low since 2019.
The Africa: The Big Deal report reveals that female CEOs received just $48 million in funding in 2024 (excluding exits), a staggering drop of more than 75% from 2023. This amount represents only 2 % of the total $2.2 billion invested in Last year, African start-ups, with male CEOs, attracted an overwhelming majority. In absolute terms, this is the lowest level of funding for female CEOs since 2020.
The representation of female CEOs among the best-funded startups has also declined further. In an analysis in September last yearthe report reveals that only four of the 100 most funded start-ups in Africa since 2019 currently had a female CEO. Since Kobo360 resigned Cikü Mugambi in Novemberthis number has now fallen to three.
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Mixed and all-female founding teams struggle
The funding landscape for female-founded and mixed teams is equally dire.
Solo female or all-female founding teams: Raised only $21 million in 2024, which represents only 1% of total funding.
Mixed founding teams: Got $123 million, which is only 5.5% of the total.
Solo or all-male founding teams: Financing dominated, raising $430 million and $1.6 billion respectively, or 95.5% of the total investment.
In contrast, start-ups with at least one female founder received only 6.5% of total funding, compared to 99% for companies with at least one male founder. These statistics, according to The Big Deal, have never been this bad since it started tracking the data in 2019.
The wider implications
These numbers reflect a persistent gender gap that not only marginalizes women entrepreneurs, but also stifles the potential for diverse perspectives in leadership and innovation. Women-led startups are driving innovation and inclusive growth in Africa. Research shows they are better bets for investors, generate higher income for the businesses they create, start businesses in high-impact sectors like health and education, and create more jobs, especially for other women. Declining funding for women-led businesses suggests that progress on gender equity is stalled or even in decline, despite growing recognition of the value of diversity to business success.
The poor statistics of 2024 highlight the urgent need for systemic change in the African start-up ecosystem. Stakeholders, investors, accelerators and policymakers must actively work to identify and remove the barriers faced by women entrepreneurs. Concrete steps such as implementing diversity-focused investment mandates, promoting mentoring opportunities, and promoting gender inclusion in decision-making processes are essential to creating a more equitable future.
Conclusion
The serious underrepresentation of female CEOs and founders in financing African start-ups in 2024 is a wake-up call. The statistics paint a discouraging picture of gender disparity, highlighting the urgent need for action to promote inclusion in the ecosystem.
Achieving gender equality in the startup ecosystem is not only a moral imperative, it is a critical driver of innovation and economic growth.
