Funding into the African tech ecosystem declined by five percent in the first quarter of 2025, totalling $460 million, according to data from Africa: The Big Deal. The report highlighted a continued drop in venture capital inflows, down from $486 million recorded during the same period in 2024.
The data insight firm, which tracks funding rounds of $100,000 and above, revealed that start-ups raised nearly $300 million in January, but funding fell to $119 million in February. March recorded one of the lowest monthly figures since late 2020, with just $50 million secured. The decline was attributed to a lack of large deals exceeding $10 million.
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Kenya, Nigeria, South Africa, and Egypt continued to dominate investment, receiving 83 percent of total funding. Kenya and Nigeria each secured around $100 million, while South Africa raised a similar amount. Egypt attracted $61 million, while Togo entered the top five with Gozem’s $30 million Series B funding round.
Fintech remained the leading sector, accounting for 46 percent of all investment. However, the report highlighted persistent gender disparities in venture capital, with 79 percent of total funding going to male-led start-ups. Founding teams with female representation attracted only a modest share, despite ongoing discussions on gender inclusivity in the industry.
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