African Tech funding rebounds in 2025, driven by record debt surge

African tech venture funding rebounded sharply in 2025 after nearly two years of slowdown,with startups raising $4.1 billion,their best performance since 2022.

The findings,published in Partech’s Africa Tech Venture Capital Report 2025,highlight a renewed investor appetite despite persistent global financial constraints.

But the recovery reflects more than a cyclical upswing,marking a structural shift toward debt financing as a core source of capital.

Debt funding reached $1.6 billion,up 63% from 2024 and spread across 107 deals,an all‑time high for the continent.

Debt now represents 41% of all capital invested in African tech,compared to 31% in 2024 and just 17% in 2019,according to the report.

Equity funding,by contrast,grew more modestly,rising 8% to $2.4 billion across 462 transactions.

According to Partech,this pivot toward debt stems from a global normalization of venture capital,tighter valuations,longer fundraising cycles,and more selective equity investors.