The State of Tech in Africa H1 2025: $1.42B Raised Amid Record M&A Activity
Africa’s technology sector demonstrated a remarkable recovery in the first half of 2025. Startups across the continent secured a substantial $1.42 billion in funding across 243 deals, a notable 78.3% increase compared to the previous year. This surge in investment highlights a renewed confidence among investors and a shift in how African tech companies are approaching expansion. The period was characterized by strategic partnerships, increased market consolidation, and a more deliberate approach to growth, rather than relying solely on large individual funding rounds.
Funding Breakdown and Sector Performance
The significant funding boost in H1 2025 was fueled by both equity and debt financing. Equity investments reached $947 million, representing a 79% year-over-year increase, while debt financing also saw strong growth, reaching $448 million, a 75% rise. Additionally, grants played a role, with funding in this category doubling to $26 million from $13 million in H1 2024. However, the distribution of capital was not uniform. Fintech companies remained dominant, attracting a staggering $638.8 million, which accounted for nearly 45% of all funding. Other sectors that received substantial investment included energy and water ($219.4 million), healthcare ($158.6 million), and housing ($75 million). Various services, deep tech, and education ventures also received notable funding, though the specific amounts were not detailed.
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