Africa’s Fintech Startups Rebound as Early-Stage Funding Recovers in 2025
Africa’s fintech sector is showing signs of recovery after a sharp funding decline between 2022 and 2024. Early-stage fintech startups raised $1 billion in the first half of 2025, marking a 40% increase compared to the same period in 2024.
This rebound comes after a 52% drop in venture capital deals and a 37% decline in sector investment over the previous two years. Fintech remains the most active sector for startup funding in Africa.
In 2024 alone, fintech accounted for 60% of all equity funding, raising $1.4 billion. Payments, lending, and remittances continue to dominate investment, but there is growing interest in wealthtech, blockchain, and insurtech. Alternative lending solutions such as buy-now-pay-later models are expanding, particularly among small businesses.
“Fintech is revolutionising the way we think about finance in Africa. By leveraging technology, we can improve access to finance for millions and foster sustainable economic growth,” Thomas Östros, Vice-President, European Investment Bank.
Funding patterns, however, reveal underlying challenges. Seed-stage companies made up 69% of all deals in 2024 but attracted only 22% of total equity capital. The average seed ticket size rose by 26% to $1.6 million, but the number of deals declined. Series A rounds increased by 13%, yet average investment sizes fell by 18%, continuing a downward trend.
Despite the sector’s growth, many hurdles remain. Regulatory complexities, limited local funding, and infrastructure gaps continue to slow progress. Most fintech startups still rely on international capital, with around 80% of their funding coming from outside Africa. Female-led startups remain significantly underfunded, receiving just 6.8% of total investments in 2024.
“True ecosystem ownership starts with local investment. While international capital can accelerate growth, it often lacks a deep understanding of local dynamics and on-the-ground realities,” Marge Ntambi, Venture Partner at Uganda’s Benue Capital.
Recent high-profile deals highlight investor confidence. Khazna, an Egyptian fintech serving the underbanked, raised $16 million in a pre-Series B round in February 2025. Nigerian fintech Moniepoint reached unicorn status after securing $110 million in 2024, followed by further investment from Visa in early 2025.
Fintech hubs remain concentrated in Nigeria, South Africa, Egypt, and Kenya, though emerging markets like Rwanda and Senegal are gaining attention. Rwanda’s national fintech strategy aims to attract $200 million in investment by 2029.
As Africa’s fintech ecosystem matures, the focus is shifting from aggressive growth to sustainable, profitable business models that can withstand future funding cycles.
“African startups must prioritise profitable, sustainable growth. That’s the message we emphasise,” said Joojo Ocran, Strategic Partnerships Director for Africa at Startupbootcamp AfriTech.