Revealed by Africa: The Big Deal, the resurgence has been driven by a steady stream of sizeable deals in equity and debt, with June standing out as a particularly aggressive month. 

Alone, the month saw $365 million in funding, the highest monthly total in nearly a year. This pushed the monthly average for H1 to $237 million, a rise from $133 million in H1 2024 and even above the 2024 full-year average of $187 million.

But this rebound didn’t happen overnight. Of the six months in H1 2025, four crossed $250 million. Even March, which saw a steep dip, has faded from memory in the face of strong activity in both equity and debt funding.

Equity deals made up the lion’s share, reaching $950 million, up 79% year-on-year. However, it came in just below the $1.02 billion raised in the second half of 2024, showing signs of stabilisation. 

The debt market, on the other hand, had a slower start. By May, debt funding stood at $177 million, down from $255 million during the same period last year. 

Then came June, Wave’s $137 million debt round changed the game. With that and a few other sizeable deals, H1 closed with $400 million in total debt funding, matching H2 2024 and improving 55% from H1 2024.

East and West Africa painted a contrasting picture. Kenya and Senegal emerged as the strongest performers, accounting for several of the top ten deals in June. 

Senegal’s Wave led with the $137 million debt round to strengthen its mobile money infrastructure. Kenya followed closely with M-KOPA securing a $51 million loan to scale its digital financial services and PowerGen closing $50 million for clean energy expansion. 

In contrast, Nigeria, long regarded as the continent’s funding magnet, slipped noticeably. No Nigerian startup featured among the top ten fundraisers in May.

There’s also been a transition in the sectors attracting capital. Fintech still commands the largest slice of the pie, but cleantech and healthtech are no longer niche. 

Companies like Burn Manufacturing in Kenya and Wetility in South Africa raised sizeable rounds for clean energy projects. MyDawa, a Kenyan healthtech platform, secured $9.6 million to grow its digital pharmaceutical services.

Despite the strong H1 showing, total funding in H1 2025 is almost identical to H2 2024, down just 1.5%. That shows a market that may have found its ceiling, at least for now.

Still, the recovery for African startups is real. Compared to the funding drought of early 2024, what we’re seeing now is a reversal. The challenge going forward is whether this growth is sustainable, or simply the system catching its breath before the next storm.

A full breakdown is expected at the Africa: The Big Deal LinkedIn Live event on July 22. 

This took up 29% of the total raised across Africa and topped the regional figures for East Africa, which as a whole, secured $725 million in funding, equivalent to one-third of Africa’s total startup investments. 

Being the second consecutive year the region maintained its top spot, even though there was an 18% year-over-year decline, Kenya received investments in sectors such as climate tech, including companies like d.light, SunCulture, and Basigo. 

Meanwhile, Tanzania and Uganda contributed $53 million and $19 million, respectively, making smaller but notable contributions to the region’s performance.

West Africa’s Recovery and Nigeria’s Steadfast Performance

West Africa ranked second in 2024, recording $587 million in funding—27% of the continent’s total. Nigeria led the region with over $400 million raised, maintaining parity with its 2023 performance and placing it among Africa’s top three startup markets. 

Major deals included Moove’s $110 million and Moniepoint’s $110 million, which helped boost the country’s startup sector despite economic challenges.

What further supported West Africa’s growth was its balanced contributions from other nations. Ghana raised $68 million, Benin $50 million, Côte d’Ivoire $33 million, and Senegal $22 million. 

This diversity strengthened the region’s place and mitigated the minor 3% decline in funding compared to the previous year.

North and Southern Africa Funding Declines

Northern and Southern Africa experienced funding contractions in 2024. North Africa raised $478 million, a 35% drop compared to 2023, primarily due to a 37% decline in Egypt, which accounted for 84% of the region’s funding. Morocco held steady with $70 million, but it was insufficient to offset Egypt’s steep decline.

In Southern Africa, funding fell by 36%, amounting to $397 million. South Africa, which accounted for 99.4% of the region’s funding, experienced a 34% drop. 

The region’s heavy reliance on South Africa continued to emphasize the limited contributions from neighbouring countries, further revealing its challenges in diversifying funding sources.

Central Africa Struggles to Gain Traction

Central Africa remained the least funded region, raising only $5 million in 2024—a sharp decline from its already low 2023 figures. The negligible contribution pointed to the region’s limited role in Africa’s startup industry.

Africa’s Big Four

Kenya, Nigeria, Egypt, and South Africa collectively accounted for 84% of all startup funding in Africa in 2024, maintaining a trend that started since 2019. These nations remain key in bolstering the continent’s investment sector.