In 2025, African tech funding regained significant momentum, recording $4.1bn in combined equity and debt financing (+25% YoY), according to Partech Africa Tech Venture Capital report. 

This marks a decisive shift after the global and regional slowdown of 2023–2024.

“This year’s rebound highlights the resilience of African founders and the growing sophistication of capital markets across the continent,” said Tidjane Dème, General Partner at Partech Africa. 

“Debt capital reached an all‑time high, with $1.64bn raised, and the number of debt transactions went from 77 to 107 deals (+39% YoY), marking the highest level of debt activity ever recorded. Meanwhile, equity markets stabilized, with meaningful recoveries at Series A and Series B. These indicators reflect a healthier, more mature ecosystem.”

Debt financing was the standout trend of 2025 with $1.6bn deployed (+63% YoY) and 107 debt deals recorded (+39% YoY), the highest level on record. 

Debt represented 41% of all capital deployed, up from 31% in 2024 and 17% in 2019.

While equity funding remained broadly stable (+8% YoY), deal sizes grew at every stage. Series A and B saw the strongest recovery, with average round sizes increasing 21% and 12% respectively.

Four ecosystems, Kenya, South Africa, Egypt and Nigeria, captured 72% of total capital, confirming the persistence of a hub‑driven VC landscape. 

While Kenya ranked first with $1.04bn raised (+72% YoY), supported by its ability to attract large debt rounds and multiple megadeals, 

South Africa regained leadership in equity deal flow. Nigeria remained highly active despite lower absolute volumes and Egypt sustained a strong pipeline with rising ticket sizes.

“2025 was the first year since 2017 in which South Africa led the way in terms of both equity funding and equity deal activity in Africa, with only one megadeal which represented 15% of total funding,” commented Cyril Collon. “This performance reflects a market where equity growth is driven by sustained deal flow across stages, rather than by a small number of outsized rounds and South Africa is the clearest example of equity-led normalization.”

Beyond the top four, Senegal, Morocco and Ghana were the only ecosystems surpassing $50m in equity funding, underscoring the steep funding drop‑off outside the leading markets.

Francophone Africa strengthened its position outside the top four, capturing 68% of equity funding and 64% of deal activity—a notable increase from 2024.

Fintech continued to dominate with $769m raised (25% of equity funding), though its overall share declined. 

Other sectors saw significant growth: Cleantech: $550m (+186% YoY), Healthtech: $215m (+232% YoY), and Enterprise: $238m (+55% YoY). 

This marks the first time since 2021–2022 that several non‑fintech sectors each exceeded $200m in annual equity funding, signaling broader ecosystem maturity.

Female‑founded startups increased their share of equity deals to 19% (+8% YoY) and captured 10% of total equity funding, though the overall gender gap remains significant.

Investor participation narrowed again in 2025 (-7% YoY), driven primarily by contraction at Seed+, while Series A and B saw renewed engagement. Investors also diversified beyond fintech, with increased activity across enterprise, cleantech and agritech.