The African startup ecosystem began 2025 with great enthusiasm, before encountering some challenges in March. In total, the continent’s startups managed to raise 460 million USD through deals of at least 100,000 USD.
The resilience of African businesses
This represents a 5% decrease from USD 486 million in the first quarter of 2024. While January saw a surge with nearly USD 300 million in funding, the momentum has begun to falter. February recorded USD 119 million, while March totaled only USD 50 million, one of the lowest monthly totals since the end of 2020. Although the end of 2024 is bleak, the first quarter of 2025 demonstrates resilience mitigated by persistent obstacles.
Togo Follows the Big Four
As expected, the “Big Four” – Kenya, Nigeria, South Africa, and Egypt – captured 83% of the funding. Kenya, Nigeria, and South Africa each secured roughly 100 million USD (24%, 24%, and 22% of the total), while Egypt received 61 million USD (14%).
Togo, a surprising contender, positioned itself in the top 5 thanks to Gozem’s USD 30 million Series B fundraise. A positive development in a relatively quiet March. This concentration highlights the appeal of established hubs, even during a bleak quarter.
Sector Spotlight: Fintech, Energy, and Logistics
Fintech represented 46% of funding this first quarter. LemFi (with 53 million USD in funding) and Naked (raising 38 million USD) were two of the most notable financings, highlighting the sector’s continued appeal.
Energy startups generated 18%, reflecting investors’ continued appetite for sustainable solutions. Logistics and transportation, meanwhile, grew 10%, driven by innovations such as Gozem’s. These three sectors highlight the prospects investors are showing, even during a period of shrinking funding.
Looking Ahead
March may have disappointed, but the first quarter of 2025 offers lessons in endurance. The dominance of the Big Four, the lead of fintech, and the gender gap in funding are familiar refrains, but the steady number of deals speaks to a certain vitality.
