Africa’s technology sector is showing clear signs of revival in 2025 with startups across the continent raising a total of $803 million between January and April, a 43 percent increase over the $563 million secured during the same period in 2024, according to a report.
The report, Africa: The Big Deal, said this uptick in funding reflects growing investor confidence in the continent’s innovation landscape despite the global headwinds that slowed capital flows last year.
So far in 2025, the report showed that 163 startups have closed $100,000+ deals, up from 147 in the first four months of 2024, pointing to a broader and more inclusive funding distribution across sectors and countries.
The month of April played a pivotal role in the surge, contributing $343 million across 39 deals, making it the second-best April on record, behind only April 2022 during the funding boom.
April’s momentum was driven by a few standout deals that signaled both ambition and long-term vision within the ecosystem.
South African healthtech company, hearX, led the charge with a landmark $100 million deal through its cross-continental merger with the U.S.-based Eargo. The move marked not only the first mega deal of the year but also a strategic step toward reshaping global hearing care solutions.
In Egypt, Islamic fintech platform, Bokra, raised $59 million via a sukuk issuance—an impressive leap for a company that closed a $4.6 million pre-seed round just a year earlier.
Meanwhile, South African payments infrastructure firm, Stitch, secured $55 million in follow-on funding, reaffirming investor belief in its mission to build robust, end-to-end payment systems for Africa’s growing digital economy.
Exits also contributed to the ecosystem’s evolution in April. Notably, Egypt’s ADVA was acquired by UAE-based Maseera, Nigeria’s Bankly was taken over by C-One Ventures, and South Africa’s Peach Payments acquired Senegalese startup PayDunya to expand into Francophone West Africa.
Investor participation is also widening. At least 225 unique investors have taken part in $100,000+ deals so far this year, suggesting not only a return of capital but also growing interest from both local and international backers.
Beyond startup deals, venture capital activity has also been ramping up. Since early 2024, more than $1.3 billion in funding has been secured by Africa-focused VC funds. These include gender-focused Janngo Capital, clean energy investor Airnergize Capital, Verod-Kepple Africa Ventures, Saviu’s Fund II—which focuses on Francophone markets—and LoftyInc Capital, among others
While industry stakeholders are cautious not to declare a full-scale recovery too soon, many agree that the year’s early momentum suggests a promising trajectory.
If the pace continues, 2025 could mark a turning point for African tech—one where resilience, strategic growth, and diversified investment will carry the ecosystem into a more stable and expansive phase.
