In July 2025, Kenya emerged as the dominant force in Africa’s clean energy startup ecosystem, securing 83% of the continent’s $550 million startup funding. The major contributors to this success were Sun King and d.light. Sun King closed a landmark $156 million securitisation deal, while d.light expanded its receivables financing by $300 million. Structured by Citi and Stanbic Bank Kenya, Sun King’s deal is the largest securitisation in Sub-Saharan Africa outside South Africa. The financing is expected to provide access to clean energy for 1.4 million low-income households and businesses in Kenya.
Meanwhile, Nigeria, once a leading destination for African startup investments, recorded a significant decline. Nigerian startups managed to raise only $58 million in equity funding during the same period, marking one of their weakest months in 2025. The country has now fallen behind Kenya, Egypt, and other emerging African markets in attracting venture capital. The trend also highlights a shift in investor behavior, with a growing preference for debt financing over equity, particularly for early-stage ventures.
Africa’s overall startup funding rebounded in July, with the total reaching $550 million—a 50.6% increase from the $365 million raised in June. Cumulatively, the continent had attracted nearly $2 billion in funding by July 2025, already nearing the $2.2 billion raised in all of 2024. A notable trend was the sharp increase in debt financing, which accounted for 89% of July’s total, up from 28.5% in June. This underscores the increasing investor appetite for structured debt products in high-impact sectors like renewable energy.
Despite the continent’s funding gains, Nigeria’s startup ecosystem continues to struggle. Analysts believe that without landmark equity deals or significant policy reforms, Nigeria may find it difficult to restore investor confidence. While 2024 saw Moniepoint become a unicorn and temporarily lift the country’s investment outlook, 2025 has so far failed to deliver similar standout successes.
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