Startups in Africa raised US$1.4 billion in the first half of 2025, a sharp 78% rise compared to the same period last year, marking a tentative recovery from the funding downturn that has gripped the continent since late 2022.
- •According to Africa: The Big Deal, the total amount raised is nearly unchanged from the second half of 2024, down just 1.5%, so a new growth cycle has not yet begun.
- •Equity funding dominated once again, comprising 67% of all funding, with debt funding standing at 28%.
- •Only 238 startups raised at least US$100,000, with 108 startups crossing the US$1 million mark, and just 40 securing US$10 million or more.
Geographically, South Africa and Egypt topped the charts with US$344 million and US$339 million raised respectively. They were followed by Kenyan and Nigerian startups, which raised US$227 million and US$176 million respectively. The “Big Four” accounted for 78% of all capital raised from January to June 2025.
Fintech remained the dominant sector, absorbing 45% of all disclosed funding, followed by energy (20%), health tech (11%), and logistics and transport (8%). Startups operating in or adjacent to climate resilience and sustainability drew 21% of total capital, a significant signal of shifting investor priorities toward long-term impact and regulatory-aligned innovation.
Over 330 unique firms were involved in six-figure deals, with 85 of them taking part in more than one investment. However, one area that continues to lag is gender equity. Startups in Africa led by female CEOs attracted just 1.5% of all funding, and those with at least one female co-founder captured only 9%. Despite growing awareness, the numbers have barely budged from previous cycles, suggesting persistent structural barriers to inclusion.
The funding climate in H1 2025 shows an ecosystem that is no longer in free fall, but not yet in ascent. Africa’s share of the global VC funding cake remains significantly small. North American startups raised US$164 billion, followed by US$28 billion in Europe, and US$20 billion in the Asia-Pacific region.