Africa’s startup landscape continues to evolve, with fintech still the dominant force across the continent. As investors sharpen their focus on emerging sectors and markets, energy, health-tech and climate tech are becoming increasingly important drivers of innovation and change. While the ‘Big Four’ - Nigeria, Egypt, Kenya and South Africa - lead in startup activity, the nature of their growth varies significantly by sector.
Africa's Startup Surge: Where the Numbers Stand
While it’s hard to pin down the exactnumber of startups in Africa, recent data reveals an estimated 3360 startups in Nigeria as of 2024, followed by Egypt with over 2000, Kenya with more than 1000 and South Africa trailing with just 490. These numbers may fluctuate due to a lack of consistent data across ecosystems, but they highlight Africa’s vibrant entrepreneurial activity, especially across the ‘Big Four’ countries.
As the ecosystem grows, a closer look of sector-specific success is essential. In terms of scaling, investment and overall development, fintech remains king but it’s no longer the only player in town.
Fintech Still Leading in Funding and Scaling
Africa’s fintech sector is not just leading the continent, it’s setting global benchmarks. Between 2023 and 2030, Africa is predicted to be the world’s fastest-growing fintech market, with revenues projected to increase 13x the global average of 6x.
When it comes to funding, the sector continues to dominate across the top four ecosystems. According toAfrica: The Big Deal, the fintech sector secured 45% of all funding (excluding exits) in the first half (H1) of 2025, bagging around (USD) $640 million. Although slightly down from the 47% in H1 2024, it remains the most dominant sector in funding terms.
Fintech deals are also some of the biggest on the continent, with a median value of $1.7 million and an average of $10 million in H1 2025. However, in terms of deal count, the sector represented just 27%, suggesting bigger cheques but fewer recipients.
Since 2019, Nigeria, South Africa, and Egypt have dominated fintech funding, claiming 61%, 57%, and 56% of fintech capital respectively. The outlier is Kenya, with just 10% of all deals. This anomaly can be explained by the power of themobile money ecosystem in the country, where about 95% of adults own a mobile money account and 82% are using it at least once a week. This makes the demand for fintech solutions lower.
Looking ahead, Africa’s fintech sector is expected to reach $47 billion in annual revenue by 2028, leaving room for more opportunities for scale and cross-border expansion.
Clean Energy Startups Gaining Investor Momentum
Following fintech, Africa’s energy and climate tech sectors are gaining momentum, driven by global trends and investor interest towards startups tackling issues around clean energy and sustainability.
When it comes to funding, the energy sector raised $220 million in H1 2025, making it the second-highest funded sector on the continent. It has remained consistently in the top 3 in Africa for the last few years. Kenya leads in energy funding, having attained 50% of all energy-related startup funding since 2019. By contrast, South Africa, Nigeria, and Egypt trail far behind with 7%, 6%, and 2% respectively.
Notable energy deals include:
Burn Manufacturing’s $85 million raise (Kenya)
PowerGen’s $55 million deal (Kenya)
Climate Tech in Africa: The Emerging Green Frontier
Many of the innovations in the energy sector overlap with climate tech, a growing category that includes innovations and solutions in clean logistics, agri-tech, food systems and in some rare cases fintech. In H1 2025, climate tech ranked fourth overall, raising $300 million, representing 21% of total startup funding and 28% of all $100k+ deals.
This figure is low compared to the previous year, but the volume and diversity of deals suggest strong long-term potential for investors.
Standout climate tech deals include:
Kumulus Water’s $3.5m raise (Tunisia)
Kofa’s $8.1 million pre-Seria A for battery swapping (Ghana)
As climate change accelerates and funding priorities shift globally, this sector could soon rival fintech in investment interest.
Health-tech Sees Rapid Growth
Africa’s health-tech sector may not attract fintech-level funding yet, but it is experiencing robust growth. In fact, it was the only sector to record year-on-year funding growth in 2024, with a 7% increase over the previous year.
The growth of the sector is driven by urgent issues: poor infrastructure, workforce shortages, data deficits and lack of access to affordable care. These challenges create fruitful ground for innovation.
In H1 2025, the sector raised $160 million, 11% of all funding raised. The standout deal was the $100m secured by hearX through its merger with US-based Eargo (South Africa), a move that also signalled increasing cross-border merger and acquisitions activity involving African health-tech startups.
Despite its relatively new beginning, health-tech has significant untapped potential. Startups here are well-positioned to address some of the continent’s most pressing challenges, making it a sector to watch closely for future growth.
Other Sectors on the Rise
While fintech, energy, climate tech and health-tech dominate the headlines, other sectors are starting to make their mark.
Transport and logistics, for example, raised $116 million in H1 2025, accounting for 8% of total funding. Meanwhile, property tech (proptech) is also gaining traction. Egypt’s Nawy raised $75 million ($52 million Series A plus debt), making it the largest proptech deal in Africa to date.
Beyond the Fintech Frenzy
Fintech may continue to lead Africa’s startup ecosystem for now, but the growth of other sectors shows that innovation on the continent is becoming more diversified. For venture capitalists and institutional investors, the opportunity no longer lies solely in payments, lending, or neobanks. Clean energy, health-tech, climate resilience, and infrastructure tech are now equally promising paths for sustainable investment and long-term impact.
As more capital flows into the continent and local ecosystems mature, Africa’s innovation economy is well on its way to becoming a global force.
Lungile is the Digital Editor for TechAfrica, with a knack for storytelling, technology and innovative ideas. Working with TechAfrica, she takes simple ideas and turns them into amazing stories.
