Investment In African Tech Startups Up Nearly 50%

After a tough couple of years, capital is finally flowing back into African tech startups.

In fact, new figures from Disrupt Africa and Partech show that funding levels rose nicely in 2025, ending what many have called a ‘funding winter’.

But whilst it hasn’t come back to the level it once was, the new rise is causing a wave of optimism for startups across the continent.

So, what do the latest figures tell us about Africa’s startup scene?

Funding Is Up For The First Time In Years

According to Disrupt Africa’s latest African Tech Startups Funding Report, 178 tech startups across Africa raised $1.64 billion in 2025. That is a huge increase of 46.2% compared to 2024.

To put that into context, funding had been in decline for two years straight. But before that was a ‘boom’ that saw companies pull in a lot of capital.

For example, in 2022, African startups raised more than $3 billion, signalling a ‘boom’. By 2024, that figure had fallen to just over $1.1 billion, a big drop.

So, whilst the 2025 figures aren’t a return to the record high levels of funding seen previously, they do signal some optimism that the worst of the ‘funding winter’ may be behind the African continent.

Fewer Startups Funded, But Bigger Cheques Were Written

When it comes to the figures as a whole, 178 African startups successfully raised money in 2025. This is slightly lower than previous years, but the amount invested between those companies was higher per round.

What this says is that investors were cautious, but when they did choose to invest, they backed companies quite strongly.

Instead of investing little and often, they were more likely to take bigger punts on companies that they believe will provide long-term gains.

The Number Of Investors Is Falling, But Not As Quickly As It Was Before

The number of active investors continued to drop in 2025, falling to 330, down 16 from 346 the year before.

Whilst signs that investors are leaving are worrying, the drop is slightly slower than it was before. To put this into context, in 2022, there were nearly 1,000 active investors in African tech. That number halved in 2023 and dropped again in 2024, showing a very steep decline.

So compared to this, the drop in 16 in 2025 actually looks more promising. The bigger exodus of 2023 seems to be over, even if the number of investors backing companies is still dropping.

What this tells us is that whilst a full recovery hasn’t happened yet, Africa is definitely finding its footing again.

The Same Countries Attract Investor Attention

As expected, it was still Africa’s biggest tech hubs that saw the biggest influx of funding.

Nigeria, Egypt, Kenya, and South Africa dominated again, taking close to 90% of all startup funding in 2025. Even more impressive is that all four raised more money than they did in 2024.

When it comes to the most popular, Nigeria raised the largest share overall, while Egypt funded the highest number of startups.

Outside of these, countries like Ghana and Morocco also saw strong raises, but the data shows that the top 4 are still attracting most of the capital.

Fintech Is Still King

When it comes to the most popular sectors for investors, fintech came out on top.

More than 50 fintech startups raised funding, securing close to $700 million between them, representing 25% of all equity funding. Payments, lending and financial infrastructure were particularly attractive, as they were seen as lower risk.

However, data from Partech shows that other sectors are catching up. Cleantech, healthtech, energy and mobility are also turning investor heads.

In fact, a few of these sectors passed the $200 million mark for the first time in years, showing wider interest in a number of areas.

Many have commented that this diversification is important. After all, if an entire ecosystem is build on one sector, that leaves it very vulnerable. As with all investments, a broader mix makes the whole continent more resilient.

African Tech Enters Its Next Phase Of Growth

2025 seemed to be a bit of a reset for African startups. Funding is on the up again, but fewer startups are seeing the benefit.

Additionally, investors are starting to back a broader range of sectors, which is a great way to make the ecosystem more resilient.

And with investment on the up, it will be interesting to see what 2026 has in store.