Four countries absorbed 84% of all funding, with South Africa and Kenya alone accounting for more than half. Egypt followed. Nigeria slipped to 8%, its lowest share since 2019, after years as the top destination for large funding rounds.

However, Nigeria still closed more deals than any other country.

That contrast runs through Briter’s findings as deal volume stayed high, but cheque sizes grew larger and fewer. African startups are still forming and raising capital, but in 2025, funding became harder to access.

Fintech and climate-focused businesses received most of the funding by value, driven by large, capital-heavy deals. Agriculture, health, education and AI startups accounted for most transactions, keeping innovation spread wide even as funding clustered at the top.

How companies raised money also changed. Debt financing crossed $1 billion for the first time, overtaking equity as scaled startups leaned on loans, structured facilities and other non-dilutive instruments to grow. 

Revenue strength, assets and predictability are now more important than rapid expansion.

Exit activity hit a record. Sixty-three acquisitions were announced in 2025, the highest ever recorded. More than half involved startups being bought by corporates, not other startups or private equity firms. Few disclosed prices, but the volume alone shows a market where buying has become easier than building.

Foreign investors still dominate African venture funding, led by the United States and Europe. Briter, however, notes a gradual widening of the pool, with more inflows from Asia and the Gulf, alongside a stronger base of Africa-focused investors providing steadier capital.

The bigger picture is restraint, not retreat. Dario Giuliani, founder and managing director at Briter, said Africa’s investment landscape continues to move through cycles of expansion and preservation, with the current phase firmly in the latter. 

“Capital is more selective, risk appetite more measured, and growth expectations more realistic,” he noted. “Yet beneath this restraint, company formation remains active across the continent, even as a handful of ecosystems continue to dominate and true geographic diversification remains limited.”

In short, funding has returned but access has not. Africa’s tech sector is still moving forward, just with fewer passengers in first class.

According to the latest report by Africa: The Big Deal, 83% of the total was raised by two companies, d.light and Sun King. 

d.light, an energy solutions company providing affordable and sustainable solar power to communities across Kenya, Uganda, and Tanzania, expanded its receivables financing by $300 million.

Sun King, one of Africa’s leading off-grid solar energy providers, secured a $156 million debt facility.

In July, 61 startups announced at least $100,000 in funding, a significant jump compared to the first half of the year, when the number typically hovered around 40 or fewer.

Of the 61 startups, spread across 15 countries, 41 were located in the “Big Four” markets: Nigeria, Egypt, South Africa, and Kenya. However, $493 million, representing 89% of the total funding raised, came from debt deals.

In terms of equity, $58 million was announced, marking the lowest equity funding within a month this year. Rwazi’s $12 million Series A was the largest equity deal in July. 

And now, with $320,000 (R6 million) in grant funding from the Energy and Environment Partnership (EEP Africa), the startup has the backing to prove it’s not just an idea.

The project isn’t about selling more chargers or fancy dashboards, but confronting one of South Africa’s most pressing headaches — load shedding — with a tool that’s been parked in our garages all along.

Zimi’s focus is vehicle-to-grid (V2G) technology. In plain terms, it’s a system that lets EVs push electricity back into buildings or the national grid. You go out, you drive, you come back, you plug in — and instead of just topping up your battery, your car can give power back to your home or workplace. When the grid fails, you don’t have to sit in the dark.

“The grant aims to investigate and understand the limitations and challenges of Vehicle-to-Grid (V2G) technology, develop real-world pilot applications to test V2G in practice, and ultimately create a commercial model that operates within existing grid constraints,” said Michael Maas, CEO of Zimi.

The EEP Africa grant didn’t come easy. Over 530 organisations submitted applications. Only 32 got the green light. Zimi was one of them. That’s no fluke.

Zimi already works closely with logistics firms — companies that own large vehicle fleets and lose money every time a truck sits idle. With V2G, that downtime becomes productive. An EV parked at a warehouse can now help power the lights and keep operations running during outages. It’s energy recycling, fleet-style.

“Perhaps the most important factor is a proven track record – something we have established through our work with major logistics providers such as Bakers Logistics,” Maas added.

The EV market in South Africa is still growing, but Zimi isn’t waiting for mass adoption. It’s betting on fleet operators to lead the transition. These are the early adopters who feel the pinch of diesel prices and operational delays more than anyone else. They also have the scale to test and refine new tech like V2G before it hits mainstream consumers.

Zimi’s solution is a complete system that helps businesses monitor their energy usage, manage payments, and even plug into solar power when available. Think of it as a full EV ecosystem, designed for the realities of South African power problems.

The timing couldn’t be better. Volvo recently launched the EX90 in South Africa, one of the country’s first EVs capable of bi-directional charging — a key requirement for V2G tech. Slowly but surely, the hardware is catching up with the vision.

At its core, Zimi is pushing for a mindset shift. The car in your driveway or at the company depot isn’t just for transport anymore. It’s a backup generator, a battery, and a power manager rolled into one.

For a country that still dreads the next stage of load shedding, it’s a breath of fresh thinking.