Venture capital flows to African startups moderated to $134.6 million in November, a sharp deceleration from October’s robust $392 million performance, according to data tracked by Launch Base Africa. Despite the month-on-month contraction, the continent’s year-to-date total has now climbed to approximately $2.87 billion, further extending its lead over 2024’s full-year figure of $2.2 billion.
While headline volumes retreated, the composition of capital in November highlighted a distinct flight to quality and hard assets. As the year winds down, investors largely bypassed early-stage speculative plays, instead concentrating capital in asset-heavy sectors like renewable energy and agritech, which accounted for the vast majority of disclosed inflows.
Energy and Infrastructure Lead the Way The month’s activity was heavily skewed by infrastructure financing. Renewable energy and cleantech ventures attracted approximately $81 million, representing roughly 60 per cent of November’s total disclosed funding.
The standout deal was a $60 million equity round for Solar Saver, a South African commercial and industrial solar installer. Backed by Inspired Evolution, FMO, and Swedfund, the deal highlights the continued appetite among development finance institutions (DFIs) for scalable energy assets in Southern Africa.
In West Africa, the trend persisted with Côte d’Ivoire-based SolarX securing a $17.4 million debt facility from the Afrigreen Debt Impact Fund. The prevalence of debt instruments in this month’s data — also seen in the $5 million facility for Kenyan edtech Jackfruit Network — suggests a maturing market where startups with predictable cash flows are increasingly leveraging balance sheet financing over equity dilution.
Regional Divergence: Kenya Reclaims Volume Lead Geographically, capital flows remained concentrated, though a divergence emerged between deal value and deal volume.
- South Africa claimed the lion’s share of funding by value ($60m), driven almost entirely by the Solar Saver transaction.
- Kenya reclaimed its position as the most active ecosystem by deal volume, recording 5 disclosed deals. The activity was diverse, spanning agritech (Farm to Feed), e-mobility (Roam Electric), and edtech (Jackfruit Network), signalling a resilient, multi-sector pipeline despite the broader funding slowdown.
- North Africa maintained relevance through the Tunisian/French agritech firm nextProtein, which raised a €18 million (~$20.7 million) Series B to expand its insect-based protein production, and the UAE-headquartered, Egypt-operational Revibe, which secured $17 million for its refurbished electronics marketplace.
Sector Rotation November offered a stark contrast to the fintech-dominated narratives of previous months. Fintech activity was muted, with the notable exception of Revibe (an e-commerce/fintech hybrid) and smaller rounds for Anda (mobility fintech) in Angola. Instead, capital favored tangible industries. Apart from energy, agritech secured over $22 million, reinforcing the focus on food security and supply chain resilience.
Europe and Africa Drive Deal Flow The investor landscape for November revealed a distinct geographic split. European investors were the most active non-African participants, involved in 24 unique deals with French funds (such as Partech, Breega, and Swen Capital) leading the charge, particularly in Francophone markets and cleantech deals. North American participation remained steady but selective, contributing 9 distinct investments, largely through impact-focused vehicles like the DRK Foundation and Mercy Corps Ventures. Crucially, domestic capital remains a vital pillar of the ecosystem: African-domiciled investors — led by South African and Egyptian firms — accounted for 22 participation slots, underscoring the growing capacity of local funds to support both early-stage seeds and complex infrastructure rounds.
Outlook With one month remaining in 2025, the African tech ecosystem has firmly rebounded from the lows of 2024. However, the November data indicates that while capital is available, it is becoming increasingly selective. The market is favoring businesses with clear unit economics, and critical infrastructure mandates over high-growth consumer software models.
Key Data at a Glance
- November Total: ~$134.6 million
- Year-to-Date (YTD): ~$2.87 billion
- Top Sector: Renewable Energy (~60% of funding)
- Largest Deal: Solar Saver ($60m)
- Most Active Country (Volume): Kenya
- Most Active Country (Value): South Africa ($60m)