Between January and May 2025, African startups secured $1 billion in funding, marking a 40% increase compared to the same period in 2024. Despite fluctuating monthly figures, this milestone signals renewed investor interest in Africa’s tech ecosystem.
January saw a strong start with $289 million raised, though this momentum dipped in February ($119 million) and March ($50 million). However, April brought a rebound with $343 million, before May settled at $254 million from 39 disclosed deals.
Over a 12-month period—from June 2024 to June 2025—African startups raised more than $2.5 billion, making it the most successful year for startup funding since early 2024. Egypt emerged as the top destination for capital in 2025 so far, securing over $330 million across more than 16 deals, a 130% year-over-year increase.
In May alone, Egyptian startups were responsible for six of the seven deals over $10 million. Leading the pack was proptech startup Nawy, which secured $75 million through a mix of equity and debt financing.
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The continent’s “Big Four” markets—Egypt, South Africa, Nigeria, and Kenya—accounted for 84% of all funding raised. South Africa followed Egypt with $273 million (26%), while Nigeria ranked third with $162 million (15%), and Kenya secured $132 million (12%). Nigeria’s consistent performance places it solidly in the top tier, although Kenya has seen a drop-off in major deals recently after leading earlier in the year.
Sector-wise, fintech continues to dominate, drawing 46% of total funding ($484 million), followed by healthtech at 14%—notably boosted by hearX’s $100 million deal in April—and energy at 10%. Equity made up 77% of disclosed funding, with debt at 13%, while the remainder came from grants and a $50 million bond issued by Egypt’s Tasaheel.
Compared to 2024, the $1 billion milestone was reached seven weeks earlier, reflecting positive momentum. Analysts now believe that 2025 could surpass 2024’s final tally of $2.2 billion.
