African startups raise $3.9bn as funding rebounds – Report

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African startups raised $3.9bn across 506 deals in 2025, signalling a recovery in fundraising activity after earlier market challenges, according to a new report by Bloomwit Africa.

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The report stated that technology funding exceeded $4bn through a combination of equity and debt financing, representing an estimated 25 per cent year-on-year increase, with venture debt emerging as a significant source of capital.

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Bloomwit Africa, a foremost PR and communications firm, stated in its report that the positive trend extended into 2026, with startup funding reaching $705m in the first quarter, up 26.5 per cent year-on-year, as investment activity spread across key markets, including Egypt, South Africa, Kenya and Nigeria.

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According to the report, “the improvement in funding reflects growing investor interest in Africa’s technology ecosystem despite global funding pressures that have affected venture capital markets in recent years.”

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The report noted that increasing use of venture debt alongside equity financing is providing startups with additional funding options, while investment activity continues to broaden beyond a few traditional markets.

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It added that the wider geographical spread of funding across leading African economies suggests a more diversified investment landscape as investors seek opportunities across the continent.

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The report stated that sustained capital inflows into technology startups could support innovation, business expansion, and job creation, while strengthening Africa’s position as an emerging destination for venture investment.

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