African startups raise $3.9bn as funding rebounds – Report

African startups have signaled a strong recovery in fundraising, securing $3.9 billion across 506 deals in 2025. This rebound, detailed in a new report by Bloomwit Africa, follows a period of market challenges that had previously impacted venture capital activity.

The technology sector proved particularly resilient, with funding exceeding $4 billion through a combination of equity and debt financing. This represents an estimated 25% year-on-year increase. Notably, venture debt has emerged as a significant source of capital, providing startups with crucial additional funding options beyond traditional equity.

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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 positive momentum extended into the first quarter of 2026, with startup funding reaching $705 million, a 26.5% year-on-year increase. Investment activity is also becoming more geographically diverse, spreading across key markets such as Egypt, South Africa, Kenya, and Nigeria. This wider geographical spread suggests a more diversified investment landscape as investors explore opportunities across the continent.

The Bloomwit Africa report highlights that the improvement in funding reflects growing investor interest in Africa's technology ecosystem, even amidst global funding pressures. The increasing use of venture debt alongside equity financing is providing startups with more flexible funding avenues. This sustained capital inflow into technology startups is expected to foster innovation, support business expansion, and create jobs, further strengthening Africa's position as an emerging destination for venture investment.

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the wider geographical spread of funding across leading African economies suggests a more diversified investment landscape as investors seek opportunities across the continent.