Startup Funding Concerns Balanced By Ai Optimism At Gitex Africa

Resolving the funding crunch facing African startups and positioning economies across the continent to reap the full benefits of artificial intelligence AI dominated discussions at the third edition of GITEX Africa in Morocco, where over 45,000 international participants gathered in Marrakech for the continent's largest tech and startup show.
Multiple speakers raised alarm over the decline in venture capital VC funding for African startups in the past year, arguing that this trend underscored the critical need for entrepreneurs on the continent to rethink their funding strategies and consider alternative sources of financing.
According to a new report by the African Private Capital Association AVCA, the value of transactions involving African startups fell by 22 year-on-year in 2024, while the volume of deals declined by 28. Persistent inflation, higher interest rates, supply chain disruptions and geopolitical shocks prompted capital allocators to retreat from the continent, compelling many startups to shelve their expansion plans and prioritise organic growth strategies.
African investors step u b Despite the challenging funding environment, Abi Mustapha-Maduakor, CEO of AVCA, struck a positive tone and stressed that Africa had demonstrated "notable resilience" in the face of global challenges. She pointed to the increasing involvement of African investors in funding rounds and diversification beyond fintech as reasons for optimism, noting that over a longer timeframe, dealmaking in African tech was on a healthy upward trajectory.