Investment in African technology startups rebounded sharply in 2025, rising nearly 50 percent to $1.64 billion as the continent’s startup ecosystem began to recover from a prolonged global funding slowdown.
According to Disrupt Africa’s latest funding report, 178 African startups secured funding during the year. While this represents a slight decline in the number of funded companies, the total capital raised increased significantly, highlighting a shift toward larger deal sizes and renewed investor confidence.
The rebound marks a turning point after two consecutive years of steep declines caused by the global “funding winter,” which constrained venture capital flows worldwide. Although the number of active investors fell again to 330, the drop was far less severe than in previous years, signalling a stabilising investment environment.
Nigeria, Egypt, Kenya and South Africa accounted for the bulk of funding activity, driving the continent’s recovery. Fintech remained the dominant sector, continuing to attract the largest share of capital as investors doubled down on proven, revenue-generating business models.
While overall funding levels have yet to return to their previous peak, analysts say the strong year-on-year growth points to improving sentiment and a gradual rebuilding of momentum across Africa’s tech ecosystem, setting the stage for further recovery in the years ahead.
