After a turbulent 2023-24, when venture capital in Africa dipped to multi-year lows, the 2025 story is turning more optimistic. The continent's start-ups are once again attracting investors, sectors such as fintech and clean energy are securing large funding rounds, and private capital is finding more viable exit routes. Yet the bigger question remains: how much difference does this renewed deal flow make to jobs and long-term development?
A market on the reboundThe numbers tell a clear story. African start-ups raised around US1.42 billion across 243 deals in the first half of 2025, representing a striking 78 year-on-year increase. By the end of the third quarter, disclosed totals had already reached between US2.2 billion and US2.8 billion, surpassing or matching the entire 2024 total, which had struggled to cross the US1.3 billion mark.
Month by month, the rebound was uneven but clearly trending upward. In the first quarter of 2025, about US460 million was raised. April saw US343 million, followed by US254 million in May, and June reached US365 million-the highest month of the first half. This volatility reflects both Africa's smaller deal base and the lumpiness of mega-deals, but the direction is unmistakably positive. Investors who had been cautious after the global venture capital slowdown are now re-entering the market.