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After two years of slowdown, the African tech ecosystem is regaining momentum. In 2025, startups across the continent raised $4.1 billion according to the latest report published by Partech. This marked rebound is driven by unprecedented use of debt and a stabilization of venture capital investments.
A clean restart after two difficult years
Cumulative fundraising, debt and equity combined, increased by 25% year-on-year, reaching $4.1 billion. This is the highest level observed since 2022, following the global slowdown of 2023-2024.
Specifically, equity financing totaled $2.4 billion (+8%) spread across 462 transactions. Debt financing, on the other hand, saw a record performance with $1.6 billion raised a 63% increase year-over-year.
“The rapid growth of debt reflects the increasing sophistication of African financial markets and the maturity of certain economic models,” analyzes Tidjane Dème.
Debt now represents 41% of mobilized capital, compared to 31% in 2024 and barely 17% in 2019, confirming a structural change in the financing of African startups.
West Africa and regional hubs: a dynamic that remains concentrated
Four countries – Kenya, South Africa, Egypt and Nigeria – account for 72% of the funds raised, illustrating the persistence of an ecosystem polarized around major hubs.
With $1.04 billion raised, Kenya has established itself as the continent’s leading market, driven by several mega-deals and its ability to attract structured finance. South Africa has regained its top spot in venture capital investment for the first time since 2017, both in terms of volume and number of deals.
In West Africa, Nigeria remains the main driver, despite lower amounts compared to peak years. Outside the top four, only Senegal , Ghana, and Morocco exceed the $50 million equity threshold, highlighting the significant gap between leading markets and emerging ecosystems.
It is worth noting, however, the progress of Francophone Africa, which captures 68% of equity amounts outside the top 4 and 64% of transactions, a positive signal for West African entrepreneurs.
Fintech still in the lead, but diversification is accelerating.
Fintech remains the leading sector in terms of funding , with $769 million, representing 25% of total equity. However, its dominance is eroding in favor of other segments.
Cleantech is experiencing spectacular growth ($550 million, +186%), as is healthtech ($215 million, +232%). B2B and enterprise solutions are also exceeding $200 million, a threshold not seen since 2021-2022.
This sectoral diversification reflects an evolution in the needs of the African market, which are increasingly oriented towards energy, health and business productivity.
Key insights from the 2025 funding landscape:
- Record Debt: Debt financing reached an all-time high, highlighting a shift towards more sustainable, less dilutive financing for mature startups.
- Recovery Metrics: The 25% increase marks a significant turnaround, with funding returning to growth after the 2023–2024 downturn.
- Regional Concentration: Funding remained concentrated in major hubs like Nigeria, Kenya, Egypt, and South Africa, which captured over 70% of the total capital.
- Investor Focus: Investors are prioritizing profitability, resilience, and sustainable growth over “growth at all costs”.
- Strong Performance: The year was characterized by a more mature, selective ecosystem, with notable, record-breaking performance in specific months.
