How Africa’s startup funding shifted from growth to Infrastructure in 2025
- Africa's startup ecosystem raised more capital in 2025 than in 2024, marking a significant rebound after two years of contraction.
- Only 3 of the 10 largest funding rounds in 2025 were pure venture rounds, with the rest relying on debt and project finance.
- Energy and climate-focused companies raised approximately $1.2 billion, surpassing fintech as the largest sector by total capital raised.
The shift towards debt and project finance in Africa's startup ecosystem indicates a maturation of the market, where stability and infrastructure development are prioritized over rapid growth. This could lead to a more sustainable business environment, but it also raises questions about the long-term viability of traditional venture capital models in the region. Further discussions should explore how this trend will affect innovation and the types of startups that receive funding moving forward.
