African startups secured $1.4 billion in funding in the first six months of 2025, marking a 78% increase over the same period last year.

The surge highlights growing investor confidence in Africa’s innovation economy, despite global economic uncertainty.

Fintech continued to lead the way, with Senegal’s Wave raising $137 million in debt financing. Health-tech also made headlines as South Africa’s hearX completed a $100 million merger, while Egypt’s Nawy secured $75 million for its real estate platform.

Equity deals accounted for $950 million of the total, with the remainder split between debt financing and grants. June alone saw startups raise $365 million, signaling strong momentum.

Investors are drawn to Africa’s youthful population, rising mobile penetration, and untapped markets. However, experts caution that startups must focus on profitability and sustainable growth to avoid the pitfalls of past tech bubbles.