The State of African Tech in 2025: A Data-Driven Overview

Where We Are Today

After the funding boom of 2021-2022 and the correction of 2023-2024, African tech is entering a new phase. Total funding has normalized, but the quality of companies being built has arguably never been higher. Founders who survived the downturn are battle-tested.

The numbers tell an interesting story: fewer mega-rounds but more sustainable seed-stage activity. Fintech still dominates, but healthtech, climate tech, and B2B SaaS are growing faster as a percentage of total funding.

Sectors to Watch

Fintech remains the backbone of African tech, but it's maturing. The opportunity now is in embedded finance and fintech infrastructure rather than another consumer payments app. Companies like Mono and Stitch are building the APIs that the next generation of fintech will run on.

Climate tech is emerging as a major theme. Africa is disproportionately affected by climate change but also has unique advantages in solar energy and carbon markets. Startups addressing these challenges are attracting both impact and commercial investors.

The Path Forward

The ecosystem is healthier than headline numbers suggest. There's more local capital, more experienced operators, and better infrastructure for building companies. The founders starting today have advantages that their predecessors didn't—and they're building on shoulders of those who came before.