Nigeria, Kenya Lead Africa’s Startup Funding Surge
Nigeria and Kenya are driving Africa’s startup funding growth, with the Big 4 countries (Nigeria, Kenya, South Africa, and Egypt) accounting for 85.7% of total funding in 2025.
Clean energy has surpassed fintech as the top-funded sector, drawing 53% of investments in Q3.
In 2025, African startups raised over $3.5 billion, marking a 59% increase from the previous year. Nigeria maintained its lead in fintech, while Kenya excelled in clean energy and healthtech. Debt financing surged, making up 45% of total funding, reflecting the ecosystem’s maturity.
Fintech remains a powerhouse in Nigeria, driving 72% of startup funding in the country. Investors are shifting focus to revenue-driven businesses with solid unit economics and models that can withstand Naira volatility. Notable deals include Moniepoint’s $110 million funding round and LemFi’s $53 million expansion into Asian and European markets.
Kenya has emerged as a leader in clean energy funding, securing 57% of Q3 2025 investments. The country’s regulatory framework has played a pivotal role in this growth, with policies like the Energy Act Amendment and Net-Metering Regulations attracting large-scale investments.
Nigeria is also making strides in cleantech and construction tech. Carrot Credit raised $4.2 million for sustainable credit and energy operations, while Cutstruct secured $1.5 million to scale its construction management platform. Investors are prioritizing ventures that address Nigeria’s energy access and sustainability challenges.
Healthtech is gaining traction in Kenya, addressing urgent healthcare needs. Field Intelligence supports over 3,200 community pharmacies, while Zipline delivers medical supplies via drones. Helium Health has digitized over 3 million patient records, streamlining hospital billing processes.
The Big 4’s dominance marks a shift toward creating infrastructure for long-term prosperity. Funding is directed toward payment systems, clean energy, and logistics networks. Successful startups are turning into acquirers, reshaping the ecosystem.
As Africa’s startup landscape evolves, regulatory reforms and domestic capital initiatives are opening doors for growth. The African Continental Free Trade Area (AfCFTA) and Pan-African Payment and Settlement System (PAPSS) are harmonizing regulations and reducing foreign exchange risks.
