The total amount of funding raised by African tech start-ups in the third quarter of 2023 reached $492 million, which takes the total for the year to date to $1.4 billion. However, that’s down 48%, year-on-year, says Disrupt Africa.

The data from the report shows that while Africa has experienced a growth in investments over the past two years, the depressed global climate for investments is now reflecting on African businesses.

The ‘African Tech Startups Funding Report’, which is available for free, found that $3.3 billion was raised in 2022. This was a leap of 55% from 2021, where investments totaled $2.1 billion.

Disrupt Africa states that the year is set to be regressive in terms of investment levels, which aligns with the global trends. The $1.4 billion raised to date this year, is 48% down on the same period last year.

The report also identifies that quarterly totals are slowly declining, with $1.2 billion raised in H1 this year, compared to H1 2022. Disrupt Africa says the $492 million raised in Q3 this year “makes it the worst quarter of the year from a funding perspective.”

The research company estimates that this year, African tech start-up funding will be down 54% year-on-year.