After a decade defined by unicorn chases and aggressive fundraising, Africa’s venture capital scene is settling into a new rhythm. Global headwinds — from rising interest rates to investor caution—have slowed the flow of capital into the continent.

But far from derailing the momentum, this correction is fueling a new kind of growth story rooted in sustainability, impact, and long-term value.

According to the African Private Capital Association (APCA), startup funding in Africa declined by 47% in 2024, following a sharp drop of 46% the previous year. Yet this shift has prompted something many ecosystem players say was long overdue—a move away from “growth at all costs” and toward smarter, impact-led investing.

“We’re seeing more mature, mission-aligned investing,” says Dario Giuliani, director at Briter Bridges, a research firm tracking African tech trends. “The startups that stand out today are those that solve real problems and demonstrate a path to profitability.”

The Rise of Essential Sectors

Even amid the funding contraction, certain sectors continue to attract consistent investor attention, particularly those that fill Africa’s infrastructure voids. Startups operating in transportation, healthcare, and logistics are emerging as standout performers, combining financial opportunity with broad societal impact.

According to research firm Partech, in 2024, nearly 40% of all VC funding in Africa flowed into these foundational sectors. Mobility platforms are modernizing public transport systems. Health tech startups are expanding access to affordable care. Logistics solutions are smoothing the movement of goods across borders and rural regions.

“These aren’t just nice-to-have products. They’re solving daily, urgent problems,” says Maya Horgan Famodu, Founder and Partner at Ingressive Capital. “When people can access affordable healthcare or get goods delivered more efficiently, the impact is immediate and massive.”

Gullit VC: A Case Study in Strategic, Impactful Investing

One firm at the heart of this transformation is Gullit VC, co-founded by Hiruy Amanuel, an African venture capitalist with roots in Silicon Valley. Launched with a Pan-African focus, Gullit VC backs early-stage companies operating in sectors critical to the continent’s development and does so with a clear eye on sustainability.

“We’ve moved beyond splashy valuations,” says Amanuel. “What we’re looking for are scalable businesses solving the continent’s biggest pain points — companies that can thrive even in tough times and environments.”

BuuPass, for example, one of Gullit VC’s portfolio companies, is revolutionizing intercity travel. The platform, which allows users to book bus, train, and flight tickets digitally, now processes over 2 million bookings annually. Since its founding, BuuPass has established partnerships with major transportation providers across Kenya, Uganda, Tanzania, South Africa, and Rwanda, processing substantial bookings annually.

In healthcare, WellaHealth is tackling gaps in chronic care and insurance access. Operating in Nigeria and Ghana, the startup uses technology to offer low-cost telemedicine and financial protection to underserved populations, a model that proved especially vital during recent health crises.

And in the logistics space, Logidoo is building infrastructure to support cross-border trade. With a network of over 3,000 logistics providers and operations in 10+ countries, the company recently launched a new trade corridor linking China to West Africa, positioning itself as a backbone of modern commerce.

From Capital to Capacity Building

For Amanuel, the investment doesn’t stop at funding. Gullit VC takes a hands-on approach to helping startups build solid internal structures, product-market fit, and long-term growth strategies. That often includes mentorship, access to networks and media, and legal and financial governance guidance.

“We’re not just deploying into hyper-rounds. We’re walking with founders as they scale,” he says. “The ecosystem needs investors who can be strategic partners, especially in this tighter funding climate.”

That model is working. Startups in the Gullit VC portfolio have created hundreds of jobs, primarily for local engineers and operations professionals, and have enabled thousands of SMEs to access better infrastructure and services.

A More Disciplined, Resilient VC Landscape

While painful for some, the funding cooldown is ushering in a new era of discipline across Africa’s startup scene. Founders are being forced to rethink their burn rates and hone their business models, and investors are looking beyond pitch decks and focusing on execution.

And increasingly, success isn’t measured in vanity metrics — but in revenue, retention, impact, and resilience.

“The ecosystem is maturing,” Giuliani observes. “The winners of this next chapter will be the ones who combine innovation with sustainability and impact.”

For Gullit VC and firms like it, this is a defining moment. It’s an opportunity to help build an exciting and enduring African startup ecosystem.

“We’re in it for the long haul,” says Amanuel. “This is about building the infrastructure for the future of the continent – from logistics and transport to healthcare, we’re doing it in a way that creates lasting
value for the continent.”