African startups raised $1.2 billion in the first half of 2025, marking an 86% increase over the same period in 2024. This remarkable growth suggests that Africa’s tech ecosystem has not only recovered from last year’s funding slowdown but is also attracting larger, more diversified investments.
While fintech and cleantech remain the dominant sectors, emerging industries like PropTech and strategic debt financing are gaining momentum.
The surge in acquisitions and mergers points to a maturing market. However, sustaining this momentum and translating capital inflows into lasting innovation will be the key challenge for the remainder of 2025.
A year of recovery: From decline to growth
At the start of 2025, cautious optimism surrounded Africa’s startup scene following a 31% drop in funding in 2024. By June, those hopes had materialized into solid results: startups across the continent raised $1.213 billion in 88 publicly disclosed deals, up from $652 million in H1 2024 (according to Condia’s Funding Tracker).
The first quarter set a solid foundation, with $469.9 million raised, a 27% increase compared to Q1 2024. Momentum accelerated in Q2, which delivered $743.1 million through a mix of follow-on equity rounds, major financings, and strategic debt facilities.
Periodic breakdown
Funding activity varied significantly by month. Here’s how investments played out:
| Month | Fundraise announced |
|---|---|
| January | $245.2 million |
| February | $185.8 million |
| March | $39.0 million |
| April | $293.4 million |
| May | $210.2 million |
| June | $229.2 million |
- Observation: March saw a temporary dip, but Q2 rebounded strongly with April leading the charge.
Country breakdown: South Africa and Egypt surge ahead
South Africa topped the charts, raising $345.1 million and accounting for 28.5% of total funding. Egypt followed closely with $283.5 million (23.4%).
Here’s a comparison of top countries in H1 2025:
| Country | H1 2025 Funding | % of Total | H1 2024 Funding |
|---|---|---|---|
| South Africa | $345.1 million | 28.5% | $65.9 million |
| Egypt | $283.5 million | 23.4% | $81.5 million |
| Senegal | $147.0 million | 12.1% | N/A |
| Nigeria | $121.9 million | 10.1% | $183.1 million |
| Kenya | $83.0 million | 6.8% | $194.3 million |
Key trends
- South Africa: Raised $120.4 million in Q1 and more than doubled that in Q2.
- Egypt: Exploded in Q2 with a nearly fivefold increase from Q1.
- Nigeria: Solid Q1, but momentum slowed in Q2, likely due to macroeconomic challenges and naira volatility.
- Kenya: Funding dipped significantly compared to H1 2024, reflecting investor caution.
- Senegal: Entered the top five thanks to Wave’s $137 million debt facility, showcasing Francophone Africa’s rising potential.
Read Also: South Africans ditch cash and cards for digital payments
Startups outside the big 4
Several startups outside Nigeria, Kenya, Egypt, and South Africa closed significant rounds:
| Startup | Country | Amount raised | Type |
|---|---|---|---|
| Wave | Senegal | $137 million | Debt financing |
| Gozem | Togo | $30 million | Series B (Equity & Debt) |
| Djamo | Côte d’Ivoire | $17 million | Equity funding |
| Zeepay | Ghana | $18 million | Senior secured venture debt |
| KERA | Senegal | $10 million | Equity (IFC investment) |
| Pula Foundation | Rwanda | $10.4 million | Grant (Bayer Foundation) |
This trend highlights the growing influence of startups in emerging ecosystems across West and East Africa.
Sectoral breakdown: Fintech back on top
| Sector | H1 2025 Funding | % of Total |
|---|---|---|
| Fintech | $500.2 million | 41.3% |
| Cleantech | $218.5 million | 18.0% |
| Healthtech | $113.0 million | 9.3% |
| PropTech | $75.0 million | 6.2% |
| E-commerce | $32.8 million | 2.7% |
- Fintech reclaimed dominance after Cleantech led in Q1 2025 and Mobility in H1 2024.
- Proptech’s rise was driven by Egypt’s Nawy raising $75 million.
Acquisitions and exits: A maturing ecosystem
M&A activity accelerated in H1 2025, signaling growing maturity:
- North Africa: ADVA was acquired by UAE-based Maseera; Miran and Welnes merged in Egypt.
- West Africa: BioLite acquired a majority stake in Baobab+, and Bankly was taken over by C-One Ventures.
- Southern Africa: Peach Payments expanded into Francophone West Africa by acquiring Senegal’s PayDunya.
Healthy exits validate business models and improve investor confidence, while also providing roadmaps for younger startups.
Outlook for H2 2025
As Africa’s tech scene rebounds, the focus now shifts to sustaining momentum. The rise of strategic debt, sector diversification, and strong M&A activity is promising. However, Nigeria and Kenya’s relative slowdown remind us that ecosystems remain vulnerable to macroeconomic forces.
If current trends hold, H2 2025 could see even more capital flowing into unexpected regions and sectors—unlocking a new era of innovation across the continent.
Source: TheCondia
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