Nairobi and Johannesburg are leading Africa’s venture capital race in 2025. Kenyan solar startups and South African fintechs have attracted the most fresh capital this year. East Africa has drawn over $865 million across more than 100 deals through August.
Southern Africa has raised $845 million. West Africa, long buoyed by Nigeria, has slipped to third place with $420 million. North Africa, anchored by Egypt, has remained steady at $450 million.
More than $2 billion had been raised across 500 deals by August this year. This already doubles the volume recorded over the same period in 2024. The recovery comes from bigger checks, not more deals.
The median deal size has risen back to $1 million, a level last seen in 2022. “2025 marks a recovery in total funding after two consecutive years of decline, even as the number of deals remains flat,” the report stated. This excludes very large and very small deals that sometimes skew the data.
Fintech remains the most funded industry, pulling in over $1 billion across 115 transactions. Payments and transfer platforms have led the way.
Nairobi and Johannesburg’s capital surge
Cleantech has mounted a strong challenge, raising nearly $950 million, primarily through debt financing for asset-heavy solar ventures. Kenya’s Sun King and d.light were among the biggest beneficiaries. This cements the country’s role as the region’s energy hub.
Other sectors that have attracted thinner slices of capital include Health tech ($150 million), Mobility ($100 million), and Property tech ($75 million). Education and agriculture startups did not make it among those with higher fund volumes. However, they represented a good number of VC deals over the year, at 65 and 50 respectively.
The shift in deal structures has been as pronounced as the geographic and sectoral changes. Debt financing crossed the $1 billion mark for the first time, narrowing its gap with equity. Traditional equity rounds are fewer, with investors preferring to back established firms with proven models.
Deals under $250,000, once common for accelerators and early-stage startups, have fallen from 90 in 2022 to just 21 this year. Male-led startups have captured three-quarters of all funding. This is a slight improvement from previous years but still leaves women-led and mixed teams trailing.
More than 35 mergers and acquisitions have been recorded so far. These include Meta’s purchase of Egypt’s PlayAI, the acquisition of Kenyan startup Flitaa, and Nedbank’s $93 million acquisition of iKhokha in South Africa. At the same time, six companies have shut down, including Nigeria’s Okra, Bento, and Edukoya as well as Kenya’s Lipa Later.
