Africa’s Equity Funding Growth Outpaces Global Peers in 2025 – Report

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February 24, 2026

In 2025, Africa distinguished itself as one of the fastest-growing equity funding regions globally, delivering stronger year-on-year growth than several major markets despite attracting only a small fraction of worldwide capital.

According to report by Africa: The Big Deal, the continent’s startup ecosystem saw a notable rise in equity funding in 2025, with total capital inflows increasing by 24% year-on-year. At first glance, this performance may appear modest when placed beside the global funding rebound of 46%.

However, the global benchmark is heavily skewed by exceptional growth in the United States, where equity funding surged 66% and accounted for roughly 70% of worldwide capital deployed. Because global figures are disproportionately driven by U.S. mega-rounds, they tend to overstate the strength of funding trends across most other regions. When isolating the rest of the world, equity funding expanded by approximately 15% year-on-year in 2025.

In 2025, Africa’s startup and investment ecosystem began showing clear signs of recovery and maturation, driven by a mix of equity deals, venture debt, and evolving investor confidence. After a period of slower activity in 2023–2024, the continent’s capital markets rebounded, reflecting both growth in deal sizes and a broader distribution of funding across regions and sectors.

Africa’s financial Equity landscape experienced a significant transformation in January 2025, with a notable surge in equity funding attracting investors from across the globe. A staggering 90% of the total funding in January came from Equity investments, amounting to $262 million, which is a 4.4x increase from January 2024.

Within that broader context, Africa’s overall 24% growth represents a comparatively strong performance rather than a lagging one. Indeed, the continent outpaced several major markets. Equity funding growth in Europe reached 18%, while Latin America recorded 17%. Growth in China stood at 19%, and Southeast Asia also posted 18%. Meanwhile, India experienced a near-flat performance, expanding by only 1% year-on-year.

Despite this strong relative growth, Africa remains significantly underrepresented in absolute funding volumes. The continent attracted approximately $2.2 billion out of an estimated $470 billion in global equity funding in 2025, representing just 0.4% of worldwide capital.

This underrepresentation becomes more pronounced when Africa’s figures are compared with those of individual markets and cities. In 2025, startups across the continent collectively raised roughly the same amount of equity capital as those in Sweden. Africa’s total also aligns closely with a single urban ecosystem, such as Toronto.

Funding in Brazil was slightly higher, while Saudi Arabia and Raleigh trailed only marginally behind. In India, funding directed solely into the fintech sector matched Africa’s entire continent-wide equity total.

Africa’s 2025 funding trajectory signals strengthening investor confidence, improved capital efficiency, and growing maturity across key startup ecosystems.

Several structural factors could shape the continent’s funding landscape in the coming years:

1. Continued Relative Growth Potential

With a smaller funding base, Africa retains significant headroom for expansion. Even moderate capital inflows can translate into strong growth rates, positioning the continent as a high-momentum region among emerging markets.

2. Rising Sector Concentration

Fintech, climate technology, logistics, and digital infrastructure are expected to attract a larger share of investment, mirroring global capital allocation patterns but with localized innovation models.

3. Currency Stability and Macroeconomic Reforms

Improved macroeconomic management across major African markets could reduce investor risk perceptions, encouraging larger ticket sizes and longer investment horizons.

4. Global Capital Diversification

As investors seek growth opportunities beyond saturated markets, Africa’s demographic expansion, digital adoption, and financial inclusion gaps present compelling long-term investment themes.

Outlook

While absolute funding volumes remain modest compared with global leaders, Africa’s 2025 performance demonstrates that the continent is not lagging behind global trends when measured against comparable regions. Instead, it is steadily strengthening its position as a competitive and increasingly attractive destination for venture capital.

Japan Seeks Clarity on U.S. Tariff Shift as Trade Deal Faces New Test Ahead of Takaichi Visit

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Samuel Nwite

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February 24, 2026

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Japan’s strategy is to lock in the 15% ceiling agreed last year and prevent Trump’s new across-the-board tariff from being layered on top, a risk that could directly hit autos and unsettle corporate investment plans.

Japan has formally asked the United States to ensure that its treatment under Washington’s new tariff regime remains at least as favorable as terms secured in last year’s bilateral trade pact, underscoring Tokyo’s effort to preserve stability as Prime Minister Sanae Takaichi prepares for a high-stakes visit to Washington next month.

The request follows President Donald Trump’s decision to impose a temporary 15% duty on imports from all countries after the U.S. Supreme Court ruled that the International Emergency Economic Powers Act (IEEPA) does not authorize the president to impose tariffs. In response, Trump invoked a separate statute that allows duties of up to 15%, and warned that countries backing away from trade agreements could face higher tariffs under alternative trade laws.

Japan’s trade minister Ryosei Akazawa said he and U.S. Commerce Secretary Howard Lutnick confirmed during a call on Monday that both governments would implement last year’s trade agreement “in good faith and without delay,” according to Japan’s trade ministry.

However, Akazawa acknowledged that some Japanese exports currently benefiting from tariff rates below 15% could face higher effective duties if the new across-the-board tariff is stacked on top of existing measures. A trade ministry official said the exposure applies in theory to goods enjoying tariffs below 15% under most-favored-nation treatment.

Tokyo’s position is narrowly framed: it is not seeking to reopen the agreement but wants assurance that the 15% rate agreed last July will function as a ceiling, not a floor.

Autos at the center of risk

The July agreement capped tariffs on Japanese autos and other goods at 15%, while Japan committed to a $550 billion package of U.S.-bound loans and investment. For Japan, autos are the critical variable. The sector accounts for a substantial share of exports to the United States and supports extensive domestic supply chains.

If the new 15% global tariff were layered over existing reduced rates, Japanese automakers could face higher-than-anticipated effective duties, compressing margins and potentially altering production allocation decisions between Japan, the United States, and third markets.

Japanese government sources said Tokyo will not seek to renegotiate the pact, partly out of concern that doing so could prompt the administration to consider sector-specific tariffs that are unaffected by the Supreme Court’s ruling, particularly in the auto industry.

The tariff shift introduces uncertainty into corporate investment planning on both sides of the Pacific. Yoshinobu Tsutsui, head of Keidanren, Japan’s largest business lobby, described the Supreme Court ruling as evidence that U.S. institutional checks and balances remain active and positive for the broader economy. At the same time, he warned that Trump’s new tariffs increase risks surrounding long-term capital expenditures.

Investment decisions in autos, semiconductors, energy, and advanced materials often hinge on stable tariff expectations over multi-year horizons. Even if the nominal rate remains at 15%, ambiguity over stacking or future legal shifts could delay board-level approvals for factory expansions or cross-border joint ventures.

Macroeconomic stakes

The broader macroeconomic implications are measurable. Takahide Kiuchi of Nomura Research Institute estimates that if the United States does not replace the invalidated IEEPA-based tariffs with permanent duties, Japan’s real GDP could be roughly 0.375% higher annually than under a sustained higher-tariff scenario.

That projection matters in an economy where growth is structurally constrained by demographics and modest domestic consumption. External demand, particularly from the United States, remains a key pillar. Even incremental changes in tariff treatment can ripple through export volumes, corporate profits, and wage growth.

The trade relationship now extends beyond tariff schedules. Last week, Tokyo and Washington unveiled three U.S. projects — valued at $36 billion — to be financed by Japan, including an oil export facility, an industrial diamonds plant, and a gas-fired power plant.

Akazawa described the broader tariffs-and-investment framework as a “win-win deal,” citing shared economic security concerns such as reliance on Chinese rare earths. By financing U.S. energy and industrial capacity, Japan is embedding itself more deeply in American supply chains while supporting diversification away from China.

This dimension adds geopolitical weight to the tariff discussion. The bilateral economic relationship increasingly intersects with supply-chain resilience, critical minerals access, and Indo-Pacific security cooperation.

Diplomatic caution ahead of March summit

With Takaichi’s Washington visit scheduled for late March, Japanese officials are emphasizing continuity. The meeting is viewed in Tokyo as important not only for trade but also for security coordination amid regional tensions and China’s export controls on strategic materials.

By refraining from public criticism of the Supreme Court ruling or Trump’s subsequent tariff move, and instead requesting equivalent treatment under the existing pact, Japan is signaling a preference for quiet diplomacy.

The immediate operational question is whether the 15% global tariff will be applied in a way that preserves the July agreement’s intended protections. The longer-term structural issue is whether U.S. trade policy will remain predictable enough for companies to plan capital deployment across borders.

Tesla’s European Slide Extends to 13 Months as BYD Accelerates Market Share Gains

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Samuel Nwite

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February 24, 2026

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Tesla’s European sales fell for a 13th straight month in January, while Chinese rival BYD posted a 165% surge in registrations, underscoring a sharp shift in the region’s EV market.

Tesla recorded its 13th consecutive month of declining sales in Europe in January, as intensifying competition and brand headwinds weighed on performance, according to fresh industry data.

Figures released Tuesday by the European Automobile Manufacturers Association (ACEA) show Tesla registered 8,075 new vehicles across the European Union, Britain, Switzerland, Norway, and Iceland in January, down 17% year-on-year. Its regional market share slipped to 0.8%, from 1% in the same month last year.

The data mark what analysts describe as another subdued start to the year for the company, which once dominated Europe’s battery-electric vehicle (BEV) segment.

Rico Luman, senior sector economist for transport and logistics at Dutch bank ING, characterized the results as a “very weak” opening to 2026, citing a combination of intensifying competition and product cycle stagnation.

European consumers now face a broader range of affordable EVs, including models from BYD as well as brands such as MG and ZEEKR. The expansion of lower-priced offerings has coincided with Tesla’s limited rollout of new mass-market models in Europe.

“Tesla’s image has deteriorated in Europe last year and people have much more choice now with the range of new affordable EVs entering the market, while Tesla lacks new models,” Luman said.

He added that Tesla’s strategic focus on autonomous driving technology, rather than frequent model refreshes, may also be affecting demand in a market where product updates and pricing adjustments drive volume.

Compounding the challenge is the secondary market dynamic. A large cohort of first-generation Tesla vehicles, leased between four and six years ago, is now being remarketed. The influx has pushed down used prices, increasing supply and potentially cannibalizing demand for new vehicles.

“There’s an abundance of competitively priced Tesla’s available on the used market,” Luman noted.

Brand and Political Overhang

Tesla’s European operations have also navigated reputational pressures tied to Chief Executive Elon Musk’s political engagement. Musk spent nearly $300 million supporting President Donald Trump’s re-election campaign and later led a high-profile initiative to reduce the size of federal agencies.

At the height of Musk’s involvement with the White House, protests took place at Tesla dealerships across parts of Europe. While Musk’s relationship with Trump later cooled following a public dispute, the episode added volatility to the company’s brand perception in markets where political alignment can influence consumer sentiment.

Europe’s EV buyers, particularly in northern and western markets, often factor environmental, governance, and corporate values into purchasing decisions, making brand equity a competitive variable.

BYD’s Expansion Gains Momentum

While Tesla contracted, BYD posted a sharp expansion. The Chinese automaker registered 18,242 vehicles in January, a 165% year-on-year increase, more than doubling its market share to 1.9% from 0.7% a year earlier.

The surge highlights a broader structural shift. Chinese EV manufacturers are rapidly scaling their European presence, leveraging vertically integrated supply chains and competitive pricing. Although U.S. trade policy has effectively barred Chinese EVs from the American market — including a 100% levy on imports — Europe remains comparatively open, albeit with evolving regulatory scrutiny.

BYD’s performance suggests European consumers are increasingly receptive to Chinese brands, particularly in the mid-range segment where price sensitivity is high.

The overall European auto market contracted modestly in January. Total registrations across the EU, Britain, and European Free Trade Association countries fell 3.5% to 961,382 vehicles.

Within that total, the composition of demand continues to shift. Petrol car registrations declined approximately 26% year-on-year. In contrast, battery-electric vehicles rose nearly 14%, plug-in hybrids climbed 32%, and hybrid-electric vehicles increased 6%.

The data underscore that electrification momentum remains intact, even as legacy internal combustion engine sales weaken. The competitive battle is therefore less about whether EV demand exists and more about which manufacturers capture that growth.

Currently, Europe presents both risk and opportunity for Tesla. The company operates a major manufacturing facility in Germany, which positions it to avoid certain import-related constraints and respond more flexibly to regional demand. However, sustaining growth may require refreshed product offerings, sharper pricing strategies, and brand recalibration in a crowded marketplace.

The prolonged decline in registrations signals that first-mover advantage is no longer sufficient. As Europe’s EV market matures, differentiation increasingly hinges on price competitiveness, model diversity, and localized marketing strategies.

January’s figures suggest that Tesla faces a recalibrated competitive market — where Chinese manufacturers are scaling quickly, and European consumers are exercising broader choice.

A Look At Trump’s 15% Global Tariffs As Markets Shift Toward Safe Havens

By

Paul Ugbede Godwin

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February 24, 2026

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President Donald Trump has announced a 15% global tariff on imports to the United States, escalating his trade policy shortly after a major Supreme Court setback. On February 20, 2026, the U.S. Supreme Court ruled 6-3 that Trump exceeded his authority by imposing sweeping “reciprocal” and other tariffs under the International Emergency Economic Powers Act (IEEPA).

The Court held that IEEPA—intended for national emergencies involving foreign threats—does not authorize the president to unilaterally impose tariffs, as the power to tax belongs to Congress. This invalidated much of Trump’s prior broad tariff program (including so-called “Liberation Day” measures), leading the administration to stop collecting those duties and potentially opening the door to refunds for importers.

In response, Trump quickly pivoted: He invoked Section 122 of the Trade Act of 1974; a rarely used provision allowing temporary import surcharges up to 15% for 150 days to address international payments issues or trade deficits to impose a new 10% global tariff on most imports, effective from Tuesday, February 24.

On Saturday (February 21), he raised it to the maximum 15% via Truth Social post, calling it “effective immediately” after reviewing the ruling, which he criticized as “ridiculous” and “anti-American.” Trump has suggested this provides “legal certainty” for even stronger future actions and that other tariff authorities remain available.

His trade representative has described the new approach as “roughly equivalent” to prior levels. The move has sparked significant backlash and uncertainty, particularly in Europe. The European Union is halting or freezing progress on a U.S.-EU trade deal agreed in 2025 which involved aspects like 15% tariffs on many EU exports to the U.S. in exchange for concessions.

EU lawmakers and the European Parliament’s trade committee plan to suspend ratification and demand clarity and commitments from the U.S. amid “pure tariff chaos.” Officials warn the new tariffs risk undermining transatlantic trade agreements, with calls for the U.S. to honor prior deals.

Similar concerns from the UK, though its spokesman indicated the new tariff may not heavily impact their separate economic arrangement with the U.S. Other partners like those with existing deals suc as Japan, and South Korea may face exemptions or questions on applicability. U.S. futures dipped; the dollar weakened, gold rose as a safe haven, and oil eased slightly amid unrelated U.S.-Iran talks.

Agriculture groups called for carveouts to protect inputs, while businesses face uncertainty over supply chains, inflation, and potential retaliation. The 15% rate is temporary unless extended by Congress, but it signals Trump’s determination to pursue aggressive trade measures despite legal hurdles. This rapid sequence has heightened global trade tensions, with experts noting ongoing “tariff roulette” and risks to economic stability.

Analyses from sources like the Yale Budget Lab estimate the current tariff regime including this new levy and remaining prior duties could raise consumer prices by about 0.6% in the short run, equivalent to a roughly $600–800 annual loss per average household in purchasing power.

If made permanent, this rises to 0.8–1.0% price impact and $1,000–1,300 per household. Macro effects include a potential 0.3 percentage point increase in unemployment by end-2026. Fiscal revenue: Around $1.3 trillion over 2026–2035 if temporary (net dynamic ~$1.1 trillion after growth drag); up to $2.2 trillion if permanent.

Businesses face higher input costs, supply chain disruptions, and inflation risks, with many costs passed to consumers (historical pass-through rates 31–90% in similar cases). Sectors like agriculture, manufacturing, and retail are particularly vulnerable without exemptions.

Trump argues the tariffs address trade deficits and protect US industries, but critics highlight reduced growth and higher costs outweighing benefits. Markets have shown restrained but negative responses amid policy confusion: US futures dipped. The dollar weakened ~0.3%, while gold rose as a safe haven.

Broader global stocks were flat to lower, with European and Asian indices selling off modestly. Volatility stems from uncertainty over exemptions, duration, and potential extensions or escalations; Trump has hinted at “more powerful” future measures. The tariff has heightened tensions, especially with allies under prior deals.

European Union: Officials describe “pure tariff chaos” and demand clarity, insisting “a deal is a deal” on the 2025 US-EU agreement which set ~15% on most EU exports in exchange for concessions. The EU may freeze ratification or suspend progress, with emergency meetings planned and retaliation threats. Some view the new 15% as potentially breaching or layering atop the deal.

United Kingdom: Confusion over whether the separate US-UK arrangement often at lower rates applies; estimates suggest £2–3 billion extra costs on UK exports to the US, risking supply chain disruptions in autos, aerospace, and pharma. Japan and South Korea likely face increases unless exempted; some allies see higher effective duties, while rivals may gain relative relief.

Potential retaliation, surplus goods flooding other markets, currency volatility, and weakened global growth. This is a temporary measure which expires ~July 2026 without action, but it signals Trump’s intent to pursue aggressive trade policies despite the Supreme Court’s February 20 ruling limiting emergency powers.

Businesses and investors face “tariff roulette,” with calls for carveouts and legal challenges likely. The situation could evolve rapidly with congressional involvement, further executive actions, or negotiations. Short-term effects center on inflation, uncertainty, and market jitters, while longer-term outcomes hinge on whether the tariff lapses or escalates into broader trade conflicts.

Tether USDT on a Second Consecutive Month of Declining Market Cap

By

Paul Ugbede Godwin

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February 24, 2026

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Tether (USDT) is on pace for a second consecutive month of declining market cap in early 2026. In January, USDT experienced a slight decline, with reports citing a drop of around $1.2 billion in market cap and supply.

Ongoing as of February: The circulating supply/market cap has fallen by approximately $1.5 billion so far this month, according to sources like Artemis Analytics via Bloomberg and others. This puts it on track for the largest monthly decline since December 2022; post-FTX collapse, when it dropped ~$2 billion.

Current market cap hovers around $183.5–183.7 billion; CoinMarketCap ~$183.61B, other trackers similar at ~$183.6B. Circulating supply ~183.6–183.9 billion USDT, price pegged near $1.00, so market cap ? supply.

Earlier peaks: Around $185–187 billion in early February and January highs, showing the downward trend. This marks a reversal from prior growth tied to pro-crypto sentiment post-2024/2025 events, with the 60-day supply change turning deeply negative -$3 billion, rare since 2022.

Meanwhile, the overall stablecoin market has grown slightly (2–2.3% in February to ~$304–307B), driven partly by gains in competitors like USDC up ~5% in some reports. Analysts link the outflows to factors like large holders and whales redeeming USDT, potential capital rotation, or reduced inflows amid market dynamics. It’s triggered rare signals last prominent during past bottoms, though rebounds could vary.

If the trend holds through month-end, February would confirm the back-to-back declines. The recent outflows from Tether (USDT)—with circulating supply and market cap declining by about $1.5 billion in February 2026 following a ~$1.2 billion drop in January—stem from a combination of factors.

Nansen data shows whale wallets (across 22 addresses) net-sold ~$69.9 million USDT in recent weeks, while “smart money” has been net sellers. Newer wallets have accumulated ($591 million), but large holders dominate the exits, often signaling de-risking or profit-taking amid market uncertainty.

Capital rotation within stablecoins: Much of the money isn’t fully exiting crypto. The total stablecoin market has grown ~2–2.3% in February to ~$304–307 billion, with USDC surging nearly 5% to ~$75.7 billion. This suggests shifts toward competitors like USDC (seen as more regulated/institutional-friendly), rather than broad capital flight.

Regulatory pressures, especially in Europe: The EU’s MiCA framework, fully implemented by late 2025, has restricted non-compliant stablecoins. USDT doesn’t fully align with MiCA requirements, leading major exchanges to delist or limit it for European users. This has reduced demand and prompted redemptions and outflows in the region.

Broader market dynamics and reduced demand: A crypto selloff has lowered need for stablecoin liquidity in margin trading, DeFi, and leveraged positions. Lower trading volumes and risk-off sentiment reduce USDT minting while boosting redemptions. Tether has also conducted large burns to handle redemptions and maintain the peg.

Other contributors point to potential institutional exits or reallocation; to fiat, bonds, or other assets during uncertainty. Daily outflows have spiked, with multiple days exceeding $1 billion in net removals. Importantly, USDT’s peg remains stable at ~$1, backed by reserves—no signs of de-pegging risk like in past crises.

The overall stablecoin ecosystem is still expanding modestly, indicating rotation rather than total exodus. Analysts view this as a liquidity contraction signal, often tied to bearish pressure or bottoms, though rebounds could follow if inflows return. For context, this contrasts with prior growth tied to pro-crypto sentiment; current trends reflect caution amid macro headwinds and regulatory shifts.