After two challenging years marked by shrinking capital and cautious investors, funding is making a strong comeback in Africa’s tech startup ecosystem.

New data from Disrupt Africa and Partech shows that investment into African tech startups surged in 2025, effectively ending what many industry watchers described as a prolonged “funding winter.”

While funding levels have not yet returned to their previous peak, the rebound has sparked renewed optimism across the continent’s startup landscape.

Funding Records First Major Rise in Years

According to Disrupt Africa’s African Tech Startups Funding Report, 178 African tech startups raised a combined $1.64 billion in 2025, representing a 46.2% increase compared to 2024.

The rise marks the first year of growth after two consecutive years of decline. In 2022, African startups enjoyed a funding boom, raising more than $3 billion. However, investment fell sharply in the years that followed, dropping to just over $1.1 billion in 2024.

Although the 2025 figures remain well below the 2022 peak, analysts say the rebound suggests the worst phase of the downturn may be over, with investor confidence gradually returning to the market.

Fewer Deals, Bigger Investments

Despite the overall increase in funding, the number of startups that raised capital in 2025 was slightly lower than in previous years. However, the average investment size grew, indicating a shift in investor strategy.

Rather than spreading capital thinly across numerous early-stage ventures, investors appeared more selective, writing larger cheques for startups they believe offer strong long-term growth potential.

Industry observers say this cautious but focused approach reflects a maturing ecosystem, where investors prioritise sustainability, scalability, and clear paths to profitability.

As capital slowly flows back into the market, the renewed momentum is expected to support innovation, job creation, and the continued evolution of Africa’s tech economy.