South Africa has long been a steady force in Africa’s start-up landscape, and the funding numbers continue to back that up.
Since 2019, the country has consistently ranked among Africa’s “Big Four” start-up markets, standing out as one of the continent’s top destinations for venture funding.
In 2019, South African start-ups secured around $80 million across various funding types (excluding exits). Funding surged to $869 million in 2021, at the height of Africa’s tech funding boom, and has since stabilized at approximately $400 million annually. As of the end of October 2025, South African start-ups had already raised $484 million.
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Despite the ecosystem’s maturity and vibrancy, the country has never claimed the number one spot in total funding volume, generally ranking third or fourth, except for a brief rise to second place in 2021. This ranking, however, obscures an important underlying reality. The majority of funding in South Africa, much like in Nigeria, comes from equity rather than debt.
From fintech to clean energy and deep tech, South African founders are securing a significant share of the continent’s equity funding, supported by a relatively mature investment environment, strong corporate participation, and a growing pipeline of globally competitive ventures.
According to a report by Africa: The Big Deal, since 2019, equity has accounted for 90% of the total funding raised in South Africa. For the third year in a row, the country is topping the charts for start-up equity funding on the continent.
By comparison, equity represents a smaller share of total funding in Egypt (76%) and Kenya (just 55%). This imbalance has become even more apparent since early 2024, when equity represented 92% of funding raised in South Africa and 86% in Nigeria, compared to two-thirds in Egypt and only a quarter in Kenya.
When focusing strictly on equity investment, South Africa’s position changes significantly. The country has been Africa’s leading market for equity funding since 2023. By the end of October 2025, South African start-ups accounted for 30% of all equity raised on the continent, despite representing only 2% of all debt financing.
With $449 million in equity secured so far this year, the market has already surpassed its totals from 2023 and 2024 and is on track to exceed 2022 levels as well. This figure is equal to the combined equity funding raised by Nigeria and Kenya or by Egypt and Kenya. Major equity rounds in 2025 have included those by hearX, Stitch, Naked, Wetility, Enko Education, Ctrack, and Paymenow, each securing more than $20 million.
South Africa is also the continent’s most active market for exits. Since 2019, it has recorded 56 exits, ahead of Egypt (48), Nigeria (34), and Kenya (24). Recent notable deals include Nedbank’s acquisition of iKhokha for approximately $93 million in August and Lesaka’s agreement to acquire Bank Zero for around $61 million in July.
Sector analysis further highlights South Africa’s strengths. The country leads the continent in funding within Healthcare, Telecom, Media & Entertainment, and Deeptech. It ranks second in Fintech, having raised $1.9 billion since 2019, compared to Nigeria’s $2.8 billion. In two of the continent’s other major sectors, Energy and Logistics & Transportation, South Africa ranks third and fourth, respectively.
Overall, while South Africa may not consistently top total funding charts, the data shows that it is a powerhouse of equity investment, exits, and sector leadership. The country’s ecosystem depth and maturity continue to position it as a central force driving Africa’s innovation economy.