In a major boost for the continent’s tech ecosystem, African startups have raised over $1.05 billion in just the first five months of 2025, according to new data released today.

This marks a staggering 40% increase compared to the same period last year, suggesting renewed investor confidence and strong momentum across the region’s tech sectors.

Leading the way is Egypt, which attracted 31% of total funding, followed by South Africa, Kenya, and Nigeria.

Egypt-based proptech startup, Nawy secured $75 million one of the largest deals of the year while fintech giants MNT-Halan and Valu drew significant backing with $50 million and $27 million respectively.

Analysts point to growing investor interest in African markets driven by digital adoption, rising financial inclusion, and stronger regional collaboration.

Startups in fintech, proptech, and healthtech continue to dominate, although emerging sectors like agri-tech and climate tech are gaining ground.

Despite persistent macroeconomic headwinds and currency fluctuations in markets like Nigeria, investors are still betting on long-term growth.

Seed and early-stage funding also saw a healthy uptick, indicating confidence not just in big names but in the next generation of innovators.

With a promising first half of 2025, the continent’s startup ecosystem seems to be firmly rebounding from the global funding slowdown of the past two years positioning Africa as a serious contender in the global innovation race.