Reflecting a slight drop over the same period in the previous year, African tech startups secured a total of $284 million across 55 deals in the first quarter of 2025.

This inertia implies that the expected explosion in financing for the innovation ecosystem of the continent is still to come.

The data shows that African businesses are still affected by the global capital scarcity, which reflects the notable decline seen in 2024 when overall investments dropped by over 50% to $1.1 billion.

Emphasizing the resiliency and promise of Africa’s tech scene, industry stakeholders remain cautiously hopeful despite the obstacles.

To lessen dependency on foreign finance, initiatives are under way to diversify funding sources and promote local investment.

The continent’s capacity for invention and its part in tackling urgent socioeconomic issues are highlighted by the continuous interest in industries such fintech, healthtech, and agritech.