Partech, the global technology investment firm, has published its annual Africa Tech Venture Capital report, one of the most comprehensive assessments of Africa’s technology funding landscape. Drawing on fully disclosed, partially disclosed and confidential data, the report offers a detailed view of an ecosystem that continues to mature, adapt and define its own path.
In 2025, African tech funding regained meaningful momentum, reaching $4.1 billion in combined equity and debt financing, a 25% increase year on year growth making the ecosystem’s strongest performance since 2022. The rebound marks a clear shift following the global and regional slowdown experienced in 2023 and 2024.
“This rebound underlines the resilience of African founders and the increasing sophistication of capital markets on the continent,” said Tidjane Dème, General Partner at Partech Africa.
“Debt capital reached a new all-time high, with US$1.64B raised, while the number of debt transactions increased from 77 to 107 deals (+39% YoY), the highest level ever recorded. At the same time, equity markets stabilized, with tangible recoveries at Series A and Series B. Together, these signals point to a healthier and more mature ecosystem.”
Here are more stats from the report:
- Equity funding reached $2.4 billion (+8% YoY) across 462 deals, while debt funding climbed to a record $1.6 billion (+63% YoY), reinforcing debt’s expanding role in startup financing across the continent.
- Total deal activity increased to 570 transactions (+7% YoY), signalling renewed momentum after two consecutive years of contraction.
- Kenya led Africa in total capital raised with $1.04 billion, driven by its strength in debt financing and four of the nine mega deals recorded in 2025.
- South Africa fully regained leadership in equity investment, topping both equity funding and deal count for the first time since 2017, supported by consistent deal flow.
- Fintech remained the largest equity sector, although its share declined as investment grew in cleantech, healthtech and enterprise software.
- Female-founded startups recorded higher deal activity (+8% YoY) but continued to attract a relatively small share of overall capital.
Debt Powers Growth
Debt financing was the defining feature of 2025, with $1.6 billion deployed (+63% YoY) across 107 debt deals (+39% YoY), the highest level on record. Debt accounted for 41% of all capital deployed, up from 31% in 2024 and just 17% in 2019.
Equity funding remained broadly stable, growing 8% year on year, while average deal sizes increased across all stages. The strongest recovery was seen at Series A and Series B, where average round sizes rose by 21% and 12% respectively.
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Country Trends
Kenya, South Africa, Egypt and Nigeria together accounted for 72% of total capital raised, highlighting the continued concentration of venture funding in a small number of hubs.
- Kenya ranked first overall with $1.04 billion raised (+72% YoY), supported by its ability to secure large debt rounds and multiple mega deals.
- South Africa, meanwhile, reclaimed leadership in equity deal flow.
- Nigeria remained highly active despite lower total volumes, while
- Egypt maintained a solid pipeline with rising ticket sizes.
“2025 marked the first time since 2017 that South Africa led Africa in both equity funding and equity deal activity, with just one megadeal accounting for 15% of total funding,” said Cyril Collon.
“This reflects an ecosystem where equity growth is driven by sustained deal flow across stages rather than a handful of outsized rounds. South Africa stands out as the clearest example of equity-led normalization.”
Outside the top four markets, only Senegal, Morocco and Ghana exceeded $50 million in equity funding, underlining the sharp drop-off in capital beyond the continent’s leading ecosystems.
Francophone Africa also strengthened its position outside the top four, capturing 68% of equity funding and 64% of deal activity, a notable increase compared to 2024.
REPORT | Francophone Africa Now Accounts for 55% of Total Equity Funding Volume Outside the Africa Big 4, Says 2024 Partech VC Report
Sector Trends
Fintech remained the largest equity sector, raising $769 million and accounting for 25% of total equity funding, although its overall share declined.
Other sectors posted strong gains, including
- Cleantech with $550 million raised (+186% YoY)
See also
- Healthtech with $215 million (+232% YoY), and
- Enterprise solutions with $238 million (+55% YoY).
For the first time since 2021–2022, multiple non-fintech sectors each surpassed $200 million in annual equity funding, pointing to a more diversified and mature ecosystem.
Founder and Investor Dynamics
Female-founded startups increased their share of equity deals to 19% (+8% YoY) and captured 10% of total equity funding, although the gender funding gap remains pronounced.
Overall investor participation declined slightly in 2025 (-7% YoY), driven mainly by reduced activity at Seed+. In contrast, Series A and Series B rounds saw renewed engagement.
Investors also continued to diversify beyond fintech, with increased exposure to enterprise, cleantech and agritech.
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