- Local Africa-headquartered investors now provide nearly 40% of startup funding, up from roughly 25%.
- Disclosed funding hit about US$3.8B in 2025 (+32% YoY) while deal count rose 8%.
- South Africa, Kenya, Egypt and Nigeria still capture 82–84% of capital, but Nigeria’s share fell to 8% (its lowest since 2019) despite leading in deal volume.
- Debt funding topped US$1B and climate/solar drew the fastest growth, with a small number of megadeals driving much of the total.
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The latest data from Briter’s Africa Investment Report 2025 and corroborating sources reveal several important shifts in the African startup funding ecosystem. While global investor pullback has reduced foreign capital contributions, local investors headquartered in Africa have stepped up, now accounting for nearly 40% of total funding. This increase in local participation has helped cushion the shock from shrinking global funding pools and stimulated a more resilient investment environment.
Total disclosed funding in 2025 reached ~US$3.8 billion, up 32% over 2024, with deal volume increasing modestly by 8%, indicating that recovery is underway but uneven. However, gains are uneven across geography, sector, and deal stage. Early- and mid-stage funding remains under strain even as growth-stage and megadeals pull ahead in terms of aggregate value.
The bulk of capital continues to flow toward the Big Four: South Africa (32%), Kenya (29%), Egypt (15%), and Nigeria (8%) of total funding. Nigeria’s decline in both value share (to 8%) and exposure to mega-deals marks a structural shift. Kenya and South Africa benefited disproportionately from large rounds in cleantech, solar energy, and other infrastructure-like sectors.
Debt instruments have gained prominence in the capital mix, surpassing US$1 billion for the first time in recent memory, highlighting a move toward less dilutive capital sources. Sectoral trends show climate-focused solutions recording rapid growth, while fintech and digital financial services remain dominant by overall deal count and value. Solar energy stands out as the top-funded category in 2025.
Strategic implications include reforging investor models around local investor networks, developing ecosystems in the Big Four that are now more diversified in sector and financing instrument, and recognising the risks posed by geographic concentration, limited exit pathways, and early/mid-stage funding gaps. Open questions remain about how to sustain growth beyond core markets, balance local vs foreign capital leverage, and how to structure instruments to support both innovation and long-term impact.
Supporting Notes
- Local investors now contribute nearly 40% of total funding in African startups; previously around 25%.
- Total disclosed funding in 2025 was US$3.8 billion, up 32% year-on-year; deal count up 8%.
- South Africa received 32% of funding, Kenya 29%, Egypt 15%, Nigeria 8% in 2025.
- Debt funding crossed the US$1 billion mark, a major increase in non-equity instruments.
- Climate-focused sectors and solar energy growth: climate companies raised more than 3× their 2024 total; solar energy was the most funded category.
- Nigeria saw its share decline sharply, with its lowest relative position among the Big Four since 2019.
- Deal value skewed: fewer than 5% of deals above US$50 million accounted for half of disclosed funding.
- Despite decline in Nigeria’s funding share, it still recorded the highest number of deals among all countries in 2025.