Startups across Africa secured a total of $345.9 million in funding this June, the highest single-month volume so far in 2025, according to data tracked by Launch Base Africa. This represents a sharp rebound from months of fluctuating investor confidence. But while the continent’s venture scene showed resilience — led by a wave of clean energy and fintech deals — Nigeria, once the continent’s flagship tech destination, suffered one of its worst showings in recent memory.
The $345.9 million haul pushes Africa’s year-to-date total to roughly $1.45 billion, a modest recovery from the capital drought that gripped the continent through much of 2023 and early 2024. Driving this month’s surge was not just international interest — but a growing dominance of local capital.
African Investors Step Up
Again, African investors accounted for the largest share of deal participation, making up 42% of all investors in June’s reported transactions. North American investors followed at 25%, with European and Asian investors representing 21% and 19% respectively.
This marks a turning point in Africa’s venture capital landscape. After years of dependency on Silicon Valley and European venture firms, local capital is beginning to fill the gap — in part, analysts say, due to the rise of regional fund managers, development finance institutions, and corporate-backed innovation arms across key markets like Kenya, South Africa, and Egypt.
“In many deals this year, the first check is increasingly African,” an analyst with Launch Base Africa states. “The signal that sends to global investors is critical. It helps unlock external capital and shows the ecosystem is maturing.”
Senegal and Kenya Lead in Funding
In a surprising twist, Senegal topped the charts in terms of total capital raised, accounting for 43% of June’s funding volume — a figure largely buoyed by Wave’s last minute $137.2 million fundraising announcement. Kenya followed with 23%, while South Africa came in at 16%. The rest of the continent made up the remaining 18%.
However, South Africa retained its grip on deal activity, logging the highest number of transactions with 20% of the month’s total deals. Egypt and Ghana also saw a solid spread across sectors, especially in fintech and agritech startups.
Clean Energy and Fintech Dominate
Fintech retained its place as Africa’s top-funded sector, drawing 46% of the capital in June. Yet clean energy and climate tech made an increasingly strong showing, accounting for 33% of the total funding — a reflection of growing investor interest in sustainable infrastructure and carbon-neutral technologies.
Large rounds from Kenyan company Burn Manufacturing and South African players like Wetility, Open Access Energy, and Zero Carbon Charge highlight a regional pivot towards energy security and renewable solutions.
In contrast, sectors like mobility, software, agritech, and healthtech split the remaining 21% of funding. While agritech showed healthy deal volume, it captured only 4.3% of capital, pointing to a landscape dominated by early-stage bets rather than late-stage scale-ups.
Nigeria’s Stark Decline
While investors from Nigeria were visibly active in multiple deals across the continent, Nigerian startups themselves managed to raise barely over $15 million — a paltry 4.35% of total disclosed funding.
The figure is all the more striking given Nigeria’s historical dominance in African tech funding. Just three years ago, Lagos alone attracted more capital than entire regions. The current downturn, experts say, is the result of a combination of harsh macroeconomic conditions, FX instability, and a funding cycle correction that has made investors more cautious.
One Lagos-based founder, whose startup has postponed its raise twice in 2025, describes the atmosphere as “dry and disillusioned.”
“Nigerian founders are still building,” he said. “But getting funding at any stage now feels like a miracle.”
Outlook: Recovery or Recalibration?
June’s funding resurgence, especially from local investors, offers a sign that Africa’s startup ecosystem is entering a new phase — one defined not by unicorn chases, but by infrastructure bets, climate solutions, and capital resilience.
Yet, the uneven distribution of capital — from Senegal’s dominance to Nigeria’s near-exclusion — indicates a wider recalibration of investor focus across the continent.
As 2025 heads into its second half, the question is no longer whether funding will return. It has. The question now is: where will it go next — and who will be left behind?
Download the June funding activity report HERE
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