African VC Flows Slow in November, But DFI and European Investment Sustain 2025 Rebound

Venture capital (VC) investment directed toward African startups cooled substantially in November 2025, recording $134.6 million, which represents a significant contraction from the preceding month’s high of $392 million. Despite this monthly decline, the continent’s Year-to-Date (YTD) funding total has climbed to approximately $2.87 billion, securely surpassing the full-year figure from 2024. The investment composition in November indicated a clear “flight to quality,” with investors bypassing early-stage, speculative ventures and concentrating capital in asset-heavy sectors like renewable energy and cleantech, which captured roughly 60% of the disclosed funding. This trend was exemplified by the month’s largest deal: a $60 million equity round for Solar Saver, a South African commercial and industrial solar installer, financed by Development Finance Institutions (DFIs) like FMO and Swedfund, and European funds. The rising prominence of debt instruments in the data suggests that startups with predictable cash flows are increasingly choosing balance sheet financing over equity dilution. Geographically, South Africa secured the largest share by value ($60M), while Kenya led by deal volume (5 deals), showcasing resilience across multiple sectors including agritech and e-mobility. European investors were the most active international participants, particularly in cleantech, highlighting their crucial role in supporting Africa’s rebound and infrastructure mandates.