Africa's Investment Map Is Shifting in Africa Startup Funding 2025

The Africa startup funding 2025 landscape shows a major regional shake-up. While funding volumes across the continent remain strong, the balance of where venture capital flows is clearly changing. East Africa and Southern Africa are emerging as the new epicenters of startup investment, outpacing long-time leaders like West and North Africa in both funding volume and deal activity.

East Africa now dominates the continent in total capital raised, attracting more than US$865 million in funding in 2025. Close behind, Southern Africa secured around US$845 million, highlighting the region’s growing role as a hub for scalable and capital-intensive ventures.

In contrast, West Africa, which long benefited from Nigeria’s vibrant fintech scene, has seen its early dominance wane. While it still closed more than 185 deals in 2025, more than any other region, the total funding volume plateaued at US$450 million. North Africa, led by Egypt, Tunisia, and Morocco, followed with about US$420 million, showing resilience but slower momentum compared to East Africa’s surge.

From Lagos to Nairobi: The Shift in Africa Startup Funding 2025

For years, Nigeria’s startup ecosystem was the beating heart of African venture capital. Mega-rounds in payments, lending, and logistics made West Africa the continent’s investment leader. But in 2025, investors began looking east and south for growth.

Kenya, Tanzania, and Rwanda power East Africa’s funding boom. These countries are strengthening their startup ecosystems through local venture partnerships, government incentives, and renewable energy and fintech innovation. Nairobi, in particular, continues to draw attention as the ‘Silicon Savannah’, with new venture deals spanning fintech, agri-tech, and climate-tech.

Meanwhile, Southern Africa (anchored by South Africa) has re-emerged as a powerhouse. Its strong infrastructure, maturing investor networks, and corporate-backed innovation hubs are helping it close high-value rounds across clean energy, healthtech, and mobility sectors.

Africa Startup Funding 2025: North Africa Holds Steady but Loses Regional Share

In North Africa, Egypt continues to anchor the ecosystem, maintaining steady funding levels. However, as capital to Morocco, Tunisia, and Algeria slowed, Egypt’s regional share began to shrink. The slowdown stems from tighter global liquidity, making early-stage startups outside Egypt less attractive to foreign investors. Despite this, Cairo remains a magnet for MENA-focused VCs, thanks to its large consumer base and expanding fintech ecosystem.

Africa’s Investment Map Is Evolving

The 2025 data makes one thing clear: Africa’s startup funding geography is changing. East and Southern Africa are now capturing the bulk of venture attention, while North and West Africa adapt to a more competitive capital environment.

With over 865 million dollars raised in East Africa alone and new records in deal activity, the Africa startup funding 2025 story is no longer defined by a single country or region. It’s a multi-polar ecosystem where Nairobi, Johannesburg, Cairo, and Lagos each play distinct but vital roles.