Unpacking venture capital outlook for Africa in 2024

After a challenging year for funding in the venture capital ecosystem in 2023, the outlook for 2024 is showing signs of improvement. In a recent interview with CNBC Africa, Maryanne Ochola, Managing Director of Endeavor, shared insights into the current landscape of venture capital in Africa, highlighting both opportunities and challenges facing entrepreneurs on the continent. Ochola emphasized the importance of high-growth companies in driving job creation, innovation, and economic growth across African economies. She noted that while foreign investments have experienced a slowdown due to the global economic downturn, local pan-African firms are stepping up to fill the gap by providing funding to promising entrepreneurs. Ochola also addressed common myths surrounding investing in African startups, pointing to the continent's population growth, demographic trends, and increasing mobile penetration as indicators of untapped potential. She encouraged investors to experience the vibrant markets and entrepreneurial spirit firsthand to truly understand the opportunities available in Africa. Despite macroeconomic challenges and bureaucratic hurdles, Ochola advised entrepreneurs to focus on building strong customer relationships and driving revenue growth as a key strategy for attracting capital. Looking ahead, Endeavor remains committed to nurturing future African business leaders by fostering a culture of high-growth entrepreneurship and providing support through peer-to-peer networking and mentorship. Ochola emphasized the cyclical nature of downturns in the venture capital industry and highlighted the importance of resilience and readiness for future opportunities.