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Africa's Tech Startup Ecosystem Signals Concern as Active Investors Decline and Gender Funding Gap Widens

Amara Okonkwo
Africa's Tech Startup Ecosystem Signals Concern as Active Investors Decline and Gender Funding Gap Widens
Africa's Tech Startup Ecosystem Signals Concern as Active Investors Decline and Gender Funding Gap Widens A concerning trend has emerged in Africa's tech startup ecosystem, as the number of active investors in African tech startups fell again in 2025, according to Disrupt Africa. This decline has sparked concerns among entrepreneurs and industry experts, who fear that it may stifle innovation and growth on the continent.

The Decline of Active Investors: A Cause for Concern

The decline in active investors is a worrying sign for Africa's tech startups, which rely heavily on investment to scale and grow. With fewer investors participating in the market, startups may struggle to secure the funding they need to bring their ideas to life. This could have far-reaching consequences for the continent's tech ecosystem, which has been hailed as a key driver of economic growth and job creation.

The Widening Gender Funding Gap

Adding to the concerns is the widening gender funding gap in tech startups. According to The Guardian Nigeria News, the gap has hit new lows, with women-led startups struggling to secure funding. This is a worrying trend, as women are underrepresented in the tech industry, and the lack of funding will only exacerbate this issue. Efforts need to be made to address this imbalance and provide more opportunities for women-led startups to access funding.

Africa's Most Active Tech Startup Investors

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Despite the decline in active investors, there are still many investors who are actively supporting Africa's tech startups. Launch Base Africa has released a list of the top 100 most active tech startup investors in Africa, based on deal activity in 2025. The list highlights the importance of investors such as TLcom, Partech, and Norrsken, who are committed to supporting the growth of Africa's tech ecosystem.

Building a More Inclusive Ecosystem

While the decline in active investors and the widening gender funding gap are concerns, they also present an opportunity for the ecosystem to come together and address these issues. By working together, we can create a more inclusive and supportive ecosystem that provides opportunities for all entrepreneurs, regardless of their background or gender. With the right support and funding, Africa's tech startups can continue to thrive and drive growth and innovation on the continent.

About the Author

Amara Okonkwo

Amara Okonkwo

Senior Technology Correspondent

Senior Technology Correspondent and Market Intelligence lead. Amara tracks the flow of venture capital and the evolution of fintech infrastructure across the continent's major tech hubs. She specializes in analyzing the intersection of traditional finance and leapfrog digital technologies.

View all articles by Amara Okonkwo →

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