African companies disclosed US$3.8 billion in funding in 2025, with deal volume up 32% and the number of announced transactions rising 8% from a year earlier, according to Briter's Africa Investment Report 2025.
The data points to a market that has stabilized after the 2022-2023 correction, but with capital increasingly concentrated by stage, sector, and geography. South Africa led by value with 32% of total funding, followed by Kenya at 29%, Egypt at 15%, and Nigeria at 8%. Nigeria posted its lowest share of funding since 2019, but recorded the highest number of deals.
Fintech and digital financial services remained the largest sector by funding and deal count. Climate-focused companies recorded the fastest growth, raising more than three times their 2024 total. Solar energy was the most funded category, reflecting investor preference for infrastructure-style models with predictable cash flows.
Equity remained the main funding instrument, while debt surpassed US$1 billion for the first time in a decade. Deal sizes increased when large rounds were excluded, even as fewer than 5% of deals above US$50 million accounted for half of disclosed funding.
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The report also recorded 63 acquisitions, most without disclosed values, and noted continued limits in exit activity.
Key Takeaways
The 2025 data highlights a market that is active but uneven. Growth-stage funding is concentrating around fewer companies, while early-stage and mid-stage capital remains fragmented. This structure favors firms with scale, revenues, or infrastructure-like models, particularly in energy and financial services. Geography remains decisive. The Big Four markets continue to anchor most capital, though their roles are shifting. South Africa's lead came from steady deal flow rather than large transactions, while Kenya's funding was driven by fewer, larger rounds. Outside these hubs, participation remains limited. Debt is becoming a more visible part of the funding mix, signaling a shift toward capital structures that reduce dilution for mature companies. At the same time, exits remain scarce, and the funding gender gap persists, with less than 10% of capital going to companies with at least one female founder. Compared with other emerging regions, Africa shows diversity in instruments and investors, including rising interest from Japan and the Gulf. Still, limited exit paths and capital concentration continue to shape how the ecosystem evolves.
