Venture capital flows into African startups have contracted sharply, with total funding dropping by approximately 80% compared to previous periods.
The collapse in equity investment marks a structural break in the region's tech financing landscape, as limited partners and institutional investors retreat from high-risk growth bets in favor of more predictable returns.
The retreat from equity is being replaced by a surge in debt finance.
Investors are increasingly turning to structured credit and loan facilities to support established businesses, signaling a maturation of the market but also a significant barrier for early-stage ventures.
This pivot reflects a broader risk-off sentiment among global capital allocators looking at emerging markets.
This development aligns with a wider shift in corporate financing across the continent.