Moroccan startups raised over MAD 700 million in funding during 2024, marking a quadrupling of investments compared to the previous year, according a new report by Africa: The Big Deal.
This surge in funding can be attributed to a number of factors, including a growing entrepreneurial culture, supportive government policies, and a thriving venture capital scene.
Morocco’s strategic location and its position as a gateway to both Europe and Africa have also made it an attractive destination for foreign investors.
Despite this impressive growth, Morocco still ranks fifth in Africa in terms of total startup funding, trailing behind Kenya, Nigeria, Egypt, and South Africa.
According to the report, these four countries collectively accounted for a staggering 84% of all startup funding on the continent in 2024.
However, the report noted a decline in funding for these leading African tech hubs compared to previous years.
The report also revealed that fintech emerged as the most attractive sector for investors in Africa, capturing 47% of total funding.
Energy, transportation and logistics followed closely behind, accounting for 20% and 13% of the total, respectively.
These three sectors dominated the African startup landscape, collectively absorbing 80% of all investments.
A notable trend in 2024 was the increased focus on climate tech startups.
While the overall funding for climate tech declined slightly compared to the previous year, it still represented a significant portion of total investments.
This increased focus on climate tech startups indicates a growing recognition of the importance of addressing climate change and developing sustainable solutions in Africa.
The report also highlighted the concentrated nature of startup funding in Africa, with just 10 startups receiving half of all investments in 2024. This suggests that a small number of high-potential startups are attracting the lion’s share of venture capital.
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