After a few years of fluctuating investment, African tech is showing strong signs of life.
Partech, the global technology investment firm, just released its annual Africa Tech Venture Capital report, revealing that 2025 marked a solid rebound in funding across the continent.
Investors poured a combined US$4.1 billion into African startups, a 25% increase compared to the previous year.
Debt Financing Hits Record Levels
One of the standout trends was debt financing, which reached an all-time high of US$1.6 billion, up 63% from 2024.
The number of debt deals also jumped by 39% to 107, making debt nearly 41% of total capital deployed—compared to just 31% in 2024 and a mere 17% in 2019.
This surge shows that startups are increasingly leveraging debt alongside equity to fuel their growth.
Equity Funding Holds Steady, Deal Sizes Grow
Equity investment remained relatively stable, growing 8% year-over-year, but deal sizes expanded across all stages.
Series A rounds increased by 21% on average, while Series B rounds grew 12%.
This suggests that while the number of deals didn’t skyrocket, investors were willing to put more money into promising startups at each growth stage.
Key Hubs Lead the Way
Funding remains concentrated in a handful of ecosystems.
Kenya, South Africa, Egypt, and Nigeria captured 72% of total capital. Kenya took the lead with US$1.04 billion raised, a remarkable 72% increase from 2024.
South Africa, meanwhile, regained its position as the leader in equity deal flow.
Nigeria continued to see active participation despite slightly lower volumes, while Egypt maintained a strong pipeline with rising average ticket sizes.
Outside these four, Senegal, Morocco, and Ghana were the only ecosystems exceeding US$50 million in equity funding.
Francophone Africa Gains Ground
Francophone Africa showed impressive growth, capturing 68% of equity funding and 64% of total deal activity.
Both numbers reflect a sharp uptick from 2024, highlighting the increasing maturity and appeal of French-speaking African markets for investors.
Sector Trends and Emerging Stars
Fintech continued to dominate, raising US$769 million, or 25% of total equity funding, though its overall share declined slightly.
Other sectors showed remarkable growth: Cleantech surged to US$550 million (+186% YoY), Healthtech jumped to US$215 million (+232% YoY), and Enterprise tech climbed to US$238 million (+55% YoY).
These shifts indicate that investors are diversifying beyond traditional fintech opportunities.
Female Entrepreneurs Make Progress
Startups founded by women also saw progress, making up 19% of equity deals (+8% YoY) and capturing 10% of total equity funding.
While the gender gap remains significant, this upward trend signals growing recognition of female-led ventures in Africa’s tech ecosystem.
Investor Behavior and Diversification
Investor participation narrowed slightly, falling 7% from 2024, mainly due to reduced activity at the Seed+ stage.
However, Series A and B rounds experienced renewed engagement.
Investors also broadened their focus, moving beyond fintech to explore cleantech, enterprise, and agritech opportunities.
About Partech Africa
Headquartered in Dakar, Senegal, Partech Africa is a venture capital fund dedicated to African technology startups.
The firm invests in equity rounds from Seed to Series C in startups reshaping education, mobility, finance, healthcare, energy, delivery, and more.
Partech itself is a global tech investment firm with headquarters in Paris and offices in Berlin, Dakar, Lagos, Dubai, Nairobi, and San Francisco.
Today, it manages €2.5 billion in assets and has a portfolio of 220 companies across 40 countries on four continents.
Looking Ahead
With funding momentum returning, diversified sector growth, and expanding investor interest, African tech appears poised for a promising 2026.
The focus now will be on nurturing emerging ecosystems, supporting female founders, and sustaining strong deal flow across the continent.
