SA is one of the biggest beneficiaries of the start-up funding recovery, raising $335.9 million. (Image created via ChatGPT)
South Africa emerged as one of the biggest beneficiaries of Africa’s tech start-up funding rebound in 2025, as total capital raised across the continent surged 46.2% year-on-year to $1.64 billion.
This is according to the latest African Tech Start-ups Funding Report by Disrupt Africa, compiled using funding data gathered throughout the year.
The team tracks all publicly disclosed investment rounds and supplements this dataset by polling start-ups, investors, hubs and other ecosystem stakeholders to identify undisclosed deals or clarify funding amounts.
According to the report, while the number of funded start-ups declined to 178, capital became more concentrated in larger rounds and established ecosystems − with SA emerging as one of the biggest beneficiaries of the rebound.
Capital remained concentrated in the “big four” countries – SA, Nigeria, Egypt and Kenya. Together they accounted for129 funded start-ups (72.5% of Africa’s total) and $1.45 billion in funding (88% of total capital raised).
Although funding winter pressures have eased, investors continue to favour perceived lower-risk, established markets, the report finds.
“In South Africa, a total of 42 start-ups secured funding − up 68% from 25 in 2024 − marking a clear reversal after several years of year-on-year declines.
“Collectively, South African ventures raised $335.9 million, accounting for 20.5% of Africa’s total start-up funding. This represents a 234% surge from the $100.4 million raised in 2024. Although still below the $512.3 million peak seen in 2023, the rebound signals renewed investor confidence in the country’s tech ecosystem.”
According to the report, the average deal size in SA climbed to $7.99 million, nearly doubling from $4.02 million in 2024 − further evidence that investors are backing larger, more mature ventures.
Fintech retains dominance
According to the study, fintech start-ups accounted for 31% of funded ventures and attracted $124.97 million − 37.2% of SA’s total funding.
The local energy sector followed with $94.6 million (28.2%), while artificial intelligence and internet of things start-ups secured $22.83 million (6.8%). Agritech also featured prominently, raising $19.6 million.
“Importantly, SA continues to show a stronger tendency toward later-stage funding compared to other African markets. Only 63.2% of disclosed rounds were pre-Series A or earlier − lower than peer markets − suggesting that investors are increasingly backing scale-stage businesses locally.”
However, gender diversity continues to decline. Only 16.7% of funded start-ups had at least one female co-founder, and just one company (2.4%) was led by a female CEO − a sharp drop from previous years, the study notes.
Acceleration programmes remain influential but less dominant than elsewhere on the continent, with one-third of local funded start-ups having participated in incubator or accelerator programmes.
For SA, 2025 represented a stabilisation year after a sharp downturn, positioning the country as a core pillar of Africa’s tech investment landscape alongside Nigeria and Egypt.
While SA posted impressive growth, Nigeria retained its position as Africa’s top-funded start-up ecosystem in 2025, the report states.
Nigerian start-ups raised $464.8 million − 28.4% of the continent’s total − despite only 25 tech start-ups securing funding. The country recorded the highest average deal size in Africa at $18.6 million, more than double 2024 levels.
Fintech was the dominant driver, accounting for 64.2% of Nigeria’s total funding. Larger, later-stage rounds played a significant role in pushing Nigeria to the top of the continental rankings.
Egypt ranked second overall, raising $378.95 million across 43 start-ups − the highest number of funded ventures in Africa. Fintech again led sectoral performance, accounting for nearly half of total Egyptian funding.
Kenya placed fourth, with 19 start-ups raising $273.2 million. Although the number of funded ventures declined again, total capital increased modestly. Energy start-ups dominated Kenyan funding, accounting for nearly three-quarters of the country’s total.
Outside the major ecosystems, Morocco retained its position as the best-performing “rest of Africa” market. Nine Moroccan start-ups raised $29.7 million − a 50% increase in capital despite fewer funded ventures.
Ghana recorded a notable funding jump to $41.2 million, while Tunisia also saw increased activity, with nine start-ups securing $12.25 million.
Meanwhile, smaller markets such as Uganda, Ivory Coast and Tanzania attracted selective but meaningful investment rounds.
According to Disrupt Africa, the report reflects a minimum funding benchmark for 2025. The organisation acknowledges that some deals may have taken place quietly and that conservative estimates were applied to undisclosed rounds, meaning total capital raised across the continent is likely higher than reported.
