Nigeria’s startup equity funding declined to $191 million in 2025 from $300 million in 2024, signalling a shift in investor preference towards markets with clearer rules and stronger signals of stability. Investors continued to redirect capital to countries where regulatory frameworks and governance structures offer more certainty.
According to Africa: The Big Deal report, South Africa extended its lead on the continent, raising $484 million between January and October 2025. This placed it ahead of Nigeria and Egypt and reinforced its trend of attracting a larger share of Africa’s equity inflows.
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South Africa extends lead in equity investment
The report shows that South Africa has dominated the continent’s equity landscape for three consecutive years. It accounted for 30 percent of all equity funding raised by African startups in 2025, with the year’s total already matching its 2022 high of $484 million.
South Africa’s funding journey has shifted since 2019, moving from $80 million in that year to $869 million during the 2021 venture surge, before settling at about $400 million annually. The report notes that 90 percent of all South African startup capital since 2019 came through equity, compared with 88 percent for Nigeria, 76 percent for Egypt, and 55 percent for Kenya.
The report stated that “This equity concentration gives South Africa a fundamentally stronger foundation for long-term value creation,” pointing to investor trust in the country’s governance systems and market progress.
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Key deals and sector performance
Several equity rounds above $20 million shaped South Africa’s performance in 2025. These included hearX, Stitch, Naked, Wetility, Enko Education, Ctrack, and Paymenow. Activity was strong in healthtech, deeptech, and telecom sectors ,where South Africa continues to hold a lead.
South Africa also recorded the highest number of startup exits on the continent. Since 2019, it has seen 56 acquisitions, ahead of Egypt’s 48, Nigeria’s 34, and Kenya’s 24. Notable deals in 2025 included Nedbank’s purchase of iKhokha for $93 million and Lesaka’s acquisition of Bank Zero for $61 million.
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Geography reshaping investor decisions
Across the continent, fintech remained competitive, with Nigeria raising $2.8 billion since 2019 and South Africa recording $1.9 billion over the same period.
The report cited commentary from Medium, noting that “Geography, in other words, is now shaping Africa’s venture map. Nigeria may have the largest market and the deepest founder pool, but investors don’t fund size alone. They fund confidence, policy clarity, and momentum — three things Kenya and South Africa are projecting more effectively right now.”
