African start-ups raised $2.8 billion in the first eight months of 2025, matching the total capital attracted across the continent in 2024, according to a report by Britter Bridges. The increase signals a rebound following two years of decline that began in 2022.

East Africa led regional funding, securing $865 million, while Southern Africa attracted $845 million US dollars. For the first time, debt financing surpassed $1 billion, providing established and high-growth companies with alternative capital sources.

Technology-driven financial services remained the largest recipient of funding, but clean technology and renewable energy ventures also gained momentum, collectively attracting close to 1 billion US dollars in commitments.

The report highlights several underlying factors driving this recovery. Supportive government policies, such as Nigeria’s Startup Act and Rwanda’s Special Economic Zones, have facilitated access to capital and infrastructure for entrepreneurs. International funding initiatives, including World Bank loans for infrastructure and green economy projects, have further strengthened the ecosystem.

Investor focus is shifting beyond traditional fintech, with healthcare, foodtech, and mobility sectors gaining traction. At the same time, initiatives like Inkomoko are supporting refugee and small-scale entrepreneurs, reflecting a broader push for inclusive growth.

Despite these gains, challenges persist. Some start-ups have struggled to scale or have shut down due to market pressures, while sectoral dynamics continue to evolve in response to investor preferences and macroeconomic conditions.

The findings suggest that 2025 could mark a turning point for African start-ups, combining renewed capital flows with policy support and sector diversification after a period of constrained financing.