African startups raise $3.9bn as funding rebounds

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.

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.

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.

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.”

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.

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.

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.