African startups raised $1.42 billion in H1 2025 — a 78% surge led by fintech and record M&A activity. Nigeria also launched landmark open banking and credit registry reforms to deepen its financial sector.
Africa’s startup ecosystem is showing strong signs of maturity as new data reveals record-breaking funding activity and sweeping regulatory reforms—particularly in the fintech space.
According to a TechCabal industry report, African startups raised $1.42 billion in the first half of 2025, marking a 78% increase year-over-year. This impressive leap signals not just recovery but resilience and scale in Africa’s fast-evolving digital economy.
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Fintech startups captured nearly 45% of all H1 funding, pulling in approximately $639 million. From digital lending to blockchain infrastructure, investors continued to favor scalable financial technologies that serve Africa’s vast unbanked and underbanked populations.
The sustained fintech dominance isn’t surprising. With mobile penetration and digital wallets booming, local and global investors see African fintechs as key to solving persistent gaps in credit access, payment infrastructure, and digital ID systems.
The mergers and acquisitions (M&A) landscape in Africa also hit new highs: 29 deals were recorded in H1 2025, representing a 45% YoY increase. Experts suggest this wave of consolidation reflects a shift from early-stage fundraising to strategic scaling through partnerships and acquisitions.
“This level of dealmaking tells us the ecosystem is maturing. Startups are no longer just looking for seed capital—they’re thinking about regional expansion, customer acquisition, and product bundling,” said Damilola Ajayi, partner at SaharaTech Ventures.
Expect more roll-ups and strategic acquisitions in high-growth verticals like healthtech, agritech, and AI-powered enterprise tools.
While funding surged across the continent, Nigeria—Africa’s largest tech hub—unveiled a wave of fintech and cybersecurity reforms aimed at improving credit access, digital trust, and innovation.
The newly launched CREDICORP system will serve as a national credit registry, linking individual credit histories to Nigeria’s biometric ID system (NIN). This allows for real-time, portable credit profiles and is expected to unlock new lending opportunities for millions of Nigerians.
Financial institutions and fintechs will be able to verify creditworthiness quickly, expanding access to personal loans, SME financing, and mortgage products.
In another long-awaited move, Nigeria’s central bank formally approved open banking regulations, allowing licensed fintechs and banks to access customer financial data with explicit user consent.
The guidelines enable:
API-based data sharing
Real-time access to customer transactions
Standardized security and consent protocols
This puts Nigeria in line with global open banking trends seen in the UK, EU, and Australia. Industry leaders believe this will fuel innovation in budgeting apps, lending platforms, and neobank services.
“These frameworks are not just regulatory checkboxes—they're innovation catalysts,” said Omolara Bello, policy analyst at Lagos Tech Forum. “Open banking and credit data reforms are key to expanding credit and digital inclusion.”
Across Africa, 2025 is shaping up as a breakthrough year for tech. Here’s why:
Capital is flowing more consistently, with fewer dry seasons than in previous years.
Regulators are stepping up, creating frameworks that balance innovation and security.
Founders are scaling smarter, not just raising funds but consolidating market share through M&A.
As Africa’s digital economy grows more complex and competitive, the winners will be startups that embrace policy shifts, build trust with users, and partner strategically.
From $1.42B in funding to Nigeria’s landmark fintech reforms, the first half of 2025 proves that Africa is no longer a “next frontier”—it’s a global innovation player.
The ecosystem is moving beyond hype to infrastructure, impact, and long-term value creation. Investors, founders, and regulators alike are setting the stage for an African tech boom built not just on ambition, but alignment and accountability.
Stay with Cortex Hub for continued coverage of Africa’s fast-growing startup ecosystem.
