The transport and logistics sector is emerging as an attractive area for investment in Africa, accounting for 32% of total fundraising in the first quarter of 2024. The notable performance of Nigerian start-up Moove, which raised $110 million, illustrates this trend. This dynamic highlights the sector’s growth potential, stimulated by the boom in e-commerce and the increasing urbanisation of the continent.

African start-ups raised $466 million in the first quarter of 2024, down 47% on the same period in 2023, according to a report published on 3 April 2024 by the specialist platform Africa the Big Deal.

Of this amount, $332 million was raised in the form of equity and the rest in the form of debt, according to the same source.

The report only takes into account the exit of investors from start-ups in the calculation of the value of financing, and only records transactions worth more than 100,000 dollars.  

A breakdown of the funding raised between 1 January and 31 March 2024 by country shows that Nigeria leads the way with $160 million (35% of the total), ahead of Kenya (24%), South Africa (16%) and Egypt (12%). Together, these four major hubs of the African tech ecosystem, which experts refer to as the “Big Four”, accounted for 87% of the total funds raised on the continent during the first three months of 2024.

A breakdown of the funds raised by sector shows that the transport and logistics sector topped the list with $151 million (32% of the total), thanks in particular to the funds raised by mobility start-up Moove. It raised a total of $110 million: $100 million in Series B funding from Uber and a $10 million loan from Stride Ventures.

The next most popular sectors were fintech (23%), agrifoodtech (11%), energy (11%) and healthcare (10%).

In addition to Moove, the two other biggest deals were made by two Kenyan start-ups, electric mobility start-up Roam ($24 million) and healthtech Hewatele ($20 million).

The Editor (with AE and CA)