African startups have officially raised over $1.06 billion in funding in 2025 (excluding exits), marking a major milestone for the continent’s tech ecosystem.
The majority of this year’s funding has flowed into the continent’s traditional tech hubs. Egypt leads the pack with more than $332 million in funding, roughly 31% of the total. South Africa follows with $273 million+ (26%), while Nigeria and Kenya have attracted $162 million (15%) and $132 million (12%), respectively.
Altogether, the “Big Four” continue to dominate, accounting for 84% of all investments so far in 2025. This concentration of funding highlights the strength of these countries’ tech ecosystems, driven by factors like robust infrastructure, regulatory support, and high innovation rates. Despite the heavy concentration, the funding activity is geographically diverse, with at least one $100,000+ deal recorded in 20 African markets.
Register for Tekedia Mini-MBA edition 19 (Feb 9 – May 2, 2026): big discounts for early bird.
Tekedia AI in Business Masterclass opens registrations.
Join Tekedia Capital Syndicate and co-invest in great global startups.
Register for Tekedia AI Lab: From Technical Design to Deployment (next edition begins Jan 24 2026).
Fintech remains the standout sector, pulling in more than $484 million, which represents 46% of all capital raised this year. In 2023, African fintech startups raised around $960 million, accounting for roughly 40% of total tech startup funding on the continent, despite a global funding slowdown.
In 2024, fintech secured 43.9% of overall startup funding, with Kenya, South Africa, Nigeria, and Egypt leading the charge. The sector’s appeal stems from addressing critical needs like financial inclusion, with 90% of transactions still cash-based and over half of Africans unbanked.
While fintech dominates African startup funding, the Healthtech sector is a strong contender, though it trails behind. In 2024, African healthtech startups raised $65 million in equity funding, a sharp 70% drop from $212 million in 2023, with deal counts falling 40% from 52 to 31. This year, the sector raised over $149 million (14%), significantly boosted by hearX’s $100 million deal in April.
The energy sector rounds out the top three, attracting $106 million (10%) in funding this year. The sector’s prominence is driven by Africa’s urgent need for sustainable energy solutions, with 600 million people lacking electricity access. Key players like Sun King ($87M, Nigeria/Kenya), d.light ($176M, Kenya/Tanzania/Uganda), and BasiGo ($42M, Kenya) are leading the charge, focusing on off-grid solar, electric mobility, and microgrids.
In terms of deal structure, equity financing dominates, representing 77% of all announced deals at $810 million+. Debt deals make up 13%, while grants account for $24 million. Notably, a $50 million corporate bond issued by Tasaheel, part of Egypt’s MNT-Halan, marked the largest bond issuance ever by a startup in the country.
When comparing the pace of funding to previous years, 2025 is ahead of schedule. In 2024, it took startups until mid-July to surpass the $1 billion mark—making this year’s progress roughly seven weeks faster. The performance is on par with 2021, although still shy of the hyper-growth years of 2022 and 2023, when the $1 billion milestone was hit within the first seven weeks of the year.
Investors and ecosystem watchers are hopeful that the momentum will continue, potentially pushing 2025 to exceed 2024’s total of $2.2 billion in startup funding. Notably, much of the current buzz centers around Nigerian mobility startup Moove, which is reportedly in the process of raising $300 million—a deal that could catapult the company to unicorn status. Industry insiders suggest the announcement is imminent, framing it as a matter of “when,” not if.”
As the year progresses, all eyes remain on Africa’s vibrant startup ecosystem, which is showing promising signs of recovery and growth.