The recent GITEX Africa event in Marrakech, Morocco, attracted over 45,000 international participants, highlighting the growing optimism about artificial intelligence (AI) and the funding challenges faced by African startups.

Despite this optimism, speakers at the event noted a significant decline in venture capital (VC) funding, with a 22% drop in transaction value and a 28% decrease in deal volume in 2024, largely attributed to economic factors such as inflation and geopolitical issues.

In 2024, fintech continued to dominate VC funding, capturing 34% of tech-enabled rounds, while AI emerged as a notable sector with 42 deals raising a total of $108 million.

Abi Mustapha-Maduakor, CEO of the African Private Capital Association (AVCA), emphasized the resilience of African economies, noting that African investors now constitute 31% of the VC investor pool, a significant increase from 19% a decade ago.

The AVCA also reported that 35 fund managers have collectively raised $2.7 billion since 2015, reflecting a 25% compounded annual growth rate in African tech funding despite recent challenges.

There is a prevailing optimism regarding AI's potential to revitalize African tech dealmaking, with discussions centered on enhancing digital infrastructure and upskilling the workforce across the continent.

A notable advancement in the AI landscape was the partnership between Nvidia and Cassava to establish AI-powered data centers across multiple African countries.

Nkululeko Thangelane from Vodacom South Africa shared that the company has seen tangible benefits from AI, including increased productivity and reduced fraud, which has prompted further investment in AI technologies.

Olu Olufemi-White, CEO of Alami Capital, stressed the importance for startups to build credibility and trust with investors, framing the acceptance of investment as a fiduciary responsibility rather than merely personal funding.