Africa’s Fundraising Momentum 2025: Fintech Faces New Rivals as Climate And Energy Contend For Share of Funds

As 2025 enters its final quarter, Africa’s start-up ecosystem continues to evolve, reflecting shifting investor priorities and sectoral momentum.

A review of year-to-date (YTD) fundraising data from January to September 2025 by Africa: The Big Deal reveals key trends shaping the continent’s innovation landscape. While Fintech continues to command significant attention, Energy and Climate-focused ventures are rapidly catching up.

Fintech Still Dominates

Fintech remains the dominant force in African start-up fundraising, but its share is narrowing. So far in 2025, the sector has attracted 33% of total funding, equivalent to $725 million out of $2.2 billion, excluding exits. Of this, fintechs accounted for 33% of equity funding and 29% of debt funding.

While this performance underscores fintech’s enduring appeal, the proportion is relatively lower than the historical average. Between 2019 and 2024, fintech captured around 45% of total funding, reaching a peak of 56% in 2021. The last time its share dipped to 33% was in 2020.

Among the 11 start-ups that raised more than $50 million in 2025, five are fintechs which are; Wave, secured $137 million in debt financing, Bokra, raised $59 million (also in debt). Stitch and LemFi completed Series B rounds of $55 million and $53 million, respectively, and Tasaheel (MNT-Halan) issued a $50 million corporate bond.

Energy Sector Surges, Matching Fintech in Funding Share

For the first time since 2019, the energy sector is nearly neck-and-neck with fintech in total funding raised, accounting for another 33% of the total so far in 2025. This is largely driven by a wave of debt financing, with energy start-ups raising $585 million this year, almost as much as all sectors combined in the entirety of 2024.

Four of the top 11 largest fundraisers this year are in the energy space which are, d.light ($300 million debt), Sun King ($156 million debt), Burn ($90 million debt), and PowerGen ($55 million equity).

Energy ventures have been particularly active in the debt market, capturing 63% of all debt raised in 2025, compared to 29% for fintech. However, their share of equity funding remains more modest at 11%, well below fintech’s 33%.

Climate Tech Gains Momentum

The strong performance of the energy sector has also boosted the profile of climate-focused start-ups, which now account for 39% of total funding in 2025, the highest share on record. This reinforces a trend first identified in 2023, as investors increasingly prioritize sustainability and green innovation.

Since 2019, over $5 billion has been invested in African climate tech start-ups, including $2.7 billion in just the past three years. This underscores the sector’s growing maturity and its critical role in Africa’s economic and environmental future.

Debt Financing on the Rise

Another defining feature of 2025 is the continued growth of debt financing in African start-up funding. So far this year, start-ups have raised $935 million in debt, surpassing the totals for both 2022 and 2024, and putting the ecosystem on track to exceed the $1.1 billion record set in 2023.

Debt now represents 42% of all funding raised in 2025, the highest share since 2019. This shift reflects a maturing ecosystem where:

• Start-ups with stable revenues are increasingly turning to debt.
• Debt instruments are becoming more available.
• Energy and infrastructure ventures require larger debt packages.
• Start-ups are more transparent about their debt financing, and
• Media reporting on debt rounds has improved.

Since 2019, Africa’s start-ups have raised an estimated $3.9 billion in debt, with energy ventures accounting for nearly half ($1.9 billion). Fintech follows with 32%, and logistics and transportation with 11%. In 2025, the dominance of energy in debt financing has reached new heights, at 63% of all debt raised.

Outlook

The report suggests that while fintech continues to lead Africa’s start-up scene, the funding landscape is becoming more diversified. Energy and climate tech ventures are emerging as major contenders, backed by rising investor confidence in sustainable infrastructure.

Overall, Africa’s start-up funding in 2025 paints the picture of a maturing and diversifying innovation economy, one that balances profitability, sustainability, and long-term impact.