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The TechTrends Podcast : The State of Startup Funding in Africa in 2025 ft Andrew Fassnidge⁠. · The TechTrends Podcast

0:03
This is the Tech Transport Cast. You'll go to podcast for the
0:06
latest in tech innovation and the digital world.
0:19
Welcome back to the Tech Transport Cast, where we explore
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the ideas, innovations and industry leaders shaping
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Africa's digital and technology landscape.
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I'm your host, Nixon Canali. Now, if you have been following
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the continent's tech ecosystem, you know the last few years has
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been a roller coaster. After the funding boom of 2021
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and 2022, Africa entered a period May described as the
0:55
funding winter investment load valuations cooled and founders
1:01
found themselves navigating tougher and more disciplined
1:07
capital markets. But 2025 is painting a new
1:12
picture. We are seeing renewed investor
1:15
confidence, more mature founders, a rise in debt
1:20
financing, and real momentum across emerging sectors like
1:25
climate tech, health tech and artificial intelligence AI.
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And yet, critical questions remain.
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Is the recovery sustainable? Where is the smart capital
1:39
flowing and who stands to lead the continent's next wave of
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unicorns? To unpack all of that, we are
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joined by someone who has had a front row seat to the evolution
1:55
of Africa's tech for more than a decade.
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He has connected startups with investors to build platforms
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that foster collaboration across the continent and continues to
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shape one of Africa's most influential tech gatherings, the
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Africa Tech Summit. Our news today is Andrew
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Farsnich, founder of Africa Tech Summit.
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We are going to talk about the state of startup funding in
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Africa in 2025, the sectors gaining momentum, the shifting
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expectations from investors, and what to look forward to as we
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approach the Africa Tech Summit Nairobi 2026.
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So whether you're a founder looking for capital and investor
2:48
watching the market, or simply someone who cares about where
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African innovation is headed, this conversation is for you.
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Let's get into it. Yeah, thanks for having me.
3:11
I'm Andrew Fastnich, founder of Africa Tech Summit and ABS
3:16
africa.com. Great.
3:18
Thanks, Andrew, and welcome to the Tech and Sport Cut.
3:21
I know actually you've listened to a lot of our episode we've
3:23
done and I know we did one with you during the last Africa Tech
3:26
Summit at the Sarit Centre. But of course after a couple of
3:31
years, you know, and our last discussion actually centered on
3:35
the same on startup funding. And I think after tough couple
3:39
of years, which of course, I've been marked with a lot of what a
3:43
lot of people, especially in our space who are calling the
3:45
funding winter, we've seen 2025, you know, house started to look
3:50
a little bit different. You know, the numbers are
3:52
climbing. You know, investor confidence
3:55
seems to be returning and of course, new sectors are emerging
3:59
very fast. So of course, thank you for
4:00
joining us on this, you know, episode.
4:02
And now my first question, Andrew, will be, you know,
4:06
you've been in Africa takes place for years, I think since
4:09
2:00 or 9:00, if I'm not wrong. And I know you've seen the
4:13
highs, the highs, you've seen the lows, and of course, the
4:17
funding winter of 2023 and 2024 really look really shook the
4:21
ecosystem, right? So let's start there.
4:24
Based on what you've seen in 2025, would you actually say the
4:28
winter is definitely over? Yeah.
4:33
I think, you know, I think it's been tough.
4:40
I think we've seen a lot of companies DOI in the last, in
4:46
the last 12 months and longer. So you know, I suppose there's
4:53
two things here. 1 is the ecosystem maturing and I think
4:58
you know, that's certainly a very, very positive thing that
5:01
we're seeing is, you know some companies are emerging and
5:05
acquiring other companies and we have a lot of companies chasing
5:08
the same space as well. So a lot of you know, fintechs
5:12
in Nigeria, fintechs in Kenya, fintechs in South Africa and
5:17
yeah, everyone's chasing the same the same space really So it
5:20
has become quite a concentrated marketing in some markets.
5:26
So I think on the funding side, yes, that there's definitely
5:29
been some pain and but what I'm what I seem to be saying is
5:33
there's 22 tiers. Really you're seeing a lot of
5:35
the more established companies are raising much bigger rounds.
5:42
You know, we saw money point last week with it with a huge
5:45
round and we've seen wave, you know, this year in, in
5:50
francophone doing doing very great, great things.
5:54
I think for the smaller guys like the seed and, and, and
5:59
every early stage guys that's definitely become a struggle.
6:02
I've seen a lot of syndicates that were quite noisy 2-3 years
6:07
ago have vanished. And you know, a lot of the
6:11
smaller check stuff has has kind of dried up.
6:15
And I would say, but I do think, you know, there is, there is a,
6:21
there is a maturity in the ecosystem and where and every
6:24
ecosystem goes through this. I think, you know, if we look
6:28
what's happening in the US in the.com, Bill, you have a crash,
6:31
you have a complete shake out. And then you have some players
6:34
that get really strong. And I think we're going to see
6:37
that as well across across the continents as well.
6:39
So it's not all I think it's as well.
6:41
The other point is like there was a lot of completely
6:45
unrealistic valuations and there was so much capital sloshing
6:49
around post COVID valuations are crazy and people are I, I
6:56
remember being on calls where like one call for a syndicate
7:01
and, and this good this, this founder had basically said, so
7:04
by the end of the call, you need to say if you're in or you're
7:07
out and word of money kind of this weekend, people are like,
7:11
whoa, whereas, you know, you need to do due diligence and,
7:14
and, and find it more with the company and the founders.
7:17
I think now the pendulum has sworn more towards the investor
7:20
and valuations are getting more realistic.
7:23
But I also believe that this this point now is a really great
7:27
inflection point where people would get in at much more sound
7:31
valuations and the growth potential is a lot stronger.
7:36
But now the funding side, I think we also have to look at
7:38
the macroeconomic side. You know, yourself in, in
7:41
Nairobi right now, you know, it's been really, really tough
7:44
for, for, for people. And you know, in terms of the
7:48
cost of living and currency, same in Nigeria, you know,
7:52
Nigeria's gone from, you know, to 14150.
7:57
I was in Lagos last week, you know, 14 and 50 to the dollar.
8:02
You know, 10 years ago it was 220 to the dollar.
8:05
And so we're, we're dealing with massive macroeconomic issues,
8:08
which is also affecting the funding landscape because when
8:12
you raise money in dollars and you're, you're getting paid in
8:16
naira or or shillings and, and the currency has dropped
8:20
dramatically and your report back in dollar terms and you're
8:25
not growing. And so, so there's been a couple
8:28
of fluctuations in, in that regard.
8:30
But I think, look, I think it's still very positive.
8:33
I think every ecosystem needs to have a downturn and then you do
8:37
get, you know, a stronger ecosystem as well.
8:40
And but I think what's also different between as you said,
8:44
the funding winters before and there's more and more African
8:49
money investing in African ventures than there ever has
8:52
been. And so we founders who've exited
8:55
companies or got secondaries are investing in other companies.
8:59
If you look at like what's happened with pay Stack and some
9:02
of those companies where a lot of those initial guys have gone
9:06
off and started the next wife and though and you'll have shot
9:09
that and people like that who are still investing in these
9:12
younger guys. So I think we're on a much more
9:15
sounder footing where you actually have a lot.
9:19
But where where was previously, you know, when the ecosystem
9:21
really began, it was all foreign investors coming in who didn't
9:26
really understand the nuances of it makes not all sorry some
9:30
didn't understand the nuances of of how, you know, Africa
9:33
operates and sorry, how 54 different markets operate, you
9:37
know. OK, Yeah, Yeah, yeah, I'm glad
9:41
you mentioned that because and I'm going to show you also
9:43
mentioned about, you know, you know, stronger valuations
9:46
because one of the reports we saw from the first half of 2025
9:50
really showed a very strong rebound.
9:52
So funding was significantly up from of course the previous the
9:55
previous 24 and we've seen this so from.
10:11
Driving deep deeper is really happening across the ecosystem.
10:17
I lost you there. I did the line back up.
10:19
I didn't get the question. Oh, sorry.
10:23
You know, I'm saying, you know, based on what you're saying, you
10:26
know, it makes so much sense because what are we seeing?
10:30
Reports from the first half of 2025 really showed a strong
10:33
rebound, You know, among Africa startups, we saw funding
10:36
significant going up from 2024. Now from where you're sitting,
10:41
what do you think is really driving that renewed investor
10:44
confidence? Is it micro, micro, you know,
10:46
economic recovery? Are we looking at better
10:49
performing startups or really there's something deepest
10:51
happening across the ecosystem? Yeah.
10:55
Like I, I think there was one VC told me, I remember two years
11:01
ago he said like we've so much capital to deploy, but we can't
11:05
deploy it at these valuations. And that capital, there has been
11:10
capital sitting waiting to be to be deployed.
11:15
So I think, I think valuations and so certain valuations that
11:20
were being thrown around 2-3 years ago, I've got a lot more
11:24
realistic and sorry, painful in some instances.
11:26
I saw one valuation of a logistics company in Kenya, you
11:31
know, that come down like by 10X from what their previous
11:36
valuation was for the next round.
11:38
And so for I suppose for new for, for capital coming in at
11:41
these, at these lower valuations, it's, you know,
11:44
complete risk reduction in terms of sectors as well.
11:51
Like, I think if we look at what's going on in different
11:53
sectors, like, you know, if we look at climate tech and you
11:58
know, that space has seen a dramatic increase in funding as
12:04
well. So I think it was like 33
12:05
percent, 33% in fintech funding for 2025.
12:11
And there was also 33 percent, 39% of overall funding went into
12:15
climate tech, which would also include some, some energy.
12:19
And so there is capital, but it's maybe being deployed in
12:24
different sectors now. I think fintech obviously became
12:26
quite a concentrated play and versus four or five years ago
12:30
where, where there was still a lot, a lot of room for
12:34
manoeuvre. And so investors are probably
12:37
deploying capital in, in, in different sectors.
12:40
I think if we look at the, you know, the FYI level, there's
12:43
just probably a mandate for some of the money to be put into,
12:47
into more climate focused. And I've never seen in my time
12:54
so much focus on climate and when the investor and the money
13:00
is heading towards climate, that it certainly drives a lot more
13:03
innovation in that space. But we are seeing companies who
13:06
are telling me their climate tech when actually there are
13:08
fintech and I say, well, maybe climate, they say we do climate
13:11
for Agri or sorry, we do fintech for Agri.
13:13
And so there's there's a bit of green washing going on in terms
13:16
of some of the climate tech stuff as well.
13:21
Oh, interesting. You know, I love the climate
13:23
bit, you know, part because, you know, I, I think, you know, for
13:27
quite a while now, a lot of climate tech startups were being
13:29
ignored. And I think that really pushed
13:32
even for us as, as, as journalists and publishers.
13:34
In fact, what we did in how the state trends, we went ahead and
13:37
created a platform that specifically spotlights climate
13:41
tech conversations across Africa.
13:44
So we really get to cover a lot of, you know, the start of the
13:46
raising funding, you know, across this sector.
13:49
So that's really quite interesting.
13:51
And you know, Andrew, one thing we've also seen is a resurgence
13:55
of debt financing this year. I think based on the research I
13:58
did and the info I gathered, over 1/4 of all capital raised
14:02
so far this year came from debt instruments.
14:05
Why do you think that's the case actually did a sign of market
14:10
maturity or the founders just you know, despite you've got
14:13
from should they call you a nine dilutive capital in a tough
14:18
equity market? Yeah, question I think a bit
14:23
about I think you know certainly say 1212 months ago, 18 months
14:30
ago, when does a lot of the capital started to dry up,
14:35
investors, founders started to look obviously in different
14:38
sectors and that that seems to be more, you know easy to
14:44
combine than than equity in some, in some instances.
14:48
I also think that the banks and from what we see with Africa
14:51
take someone and we definitely see in the last four to four,
14:57
three to four years, a lot more banks are very, very much more
15:01
interested in I suppose you start more established and
15:06
African ventures and they are willing to provide lines of
15:11
credit as well for those. And so I think there's, I think
15:14
there's also been a shift on the banking side.
15:17
And whereas they may not have touched tech ventures a few
15:22
years ago, now they realize actually some of these have
15:25
really good lines of revenue and customers and they are growing
15:30
sectors. But yeah, I think on the
15:33
founders side, obviously look, if you can, if you can take debt
15:36
first, giving away more equity, it's, it's goods.
15:38
And certainly in these down rounds where where they're,
15:41
they're having to get more capital and give away more
15:43
equity debt, that's obviously a much more favorable tool, tool
15:48
to use. And some of, you know, some of
15:52
the ventures are generating, you know, good returns, you know,
15:56
and have good customer bases. So they, the, the power also
16:01
swings to them in terms of actually, do we really need to
16:03
give away equity or can we find a provider who can give U.S.
16:07
debt? So yeah, let's look at returns.
16:11
You know, why is everybody in this game really, you know, in
16:15
terms of founders, they want to, they eventually they want to
16:19
exit and they want to get a return.
16:21
And and the initial investors also don't want to keep getting
16:25
diluted as well. So we'll also support, you know,
16:27
debt mandates. Two things.
16:31
So I mean, let me take you back a little bit to the, you know,
16:35
to the, you know, stuff that actually seem to be attracting a
16:37
lot of attention. So of course, fintech continues
16:40
to dominate. That's been it's been like that
16:43
for so many years. But again, as you say, we're
16:45
seeing real momentum, you know, in climate tech, health tech and
16:50
of course AI, which is a very big thing right now.
16:52
Enough From where you see it, which non fintech sectors do you
16:57
think we produce? You know, Africa's next wave of
17:00
unicorns. Yeah, good question.
17:03
Like even if you look at climate tech, you know it's probably not
17:08
going to return, OK. It's broad in terms of sectorial
17:13
focus. So you could have EVs, energy,
17:16
solar and water, carbon capture and, and then you go into food
17:21
security. It is a broad umbrella.
17:23
And will some of those return 10X20X you know which which you
17:28
know, and a massive outlier, I don't know.
17:32
But are they essential as well? And, and can they return and can
17:36
they generate revenue? Like if we look at Agri, you
17:38
know, Agri generates revenue and food security is a massive issue
17:45
for the whole, not just for Africa, but globally.
17:47
And so, you know, maybe you don't get the the huge returns
17:52
that you will get off of fintech, but and there are,
17:55
there are strong revenue streams in some of those sectors as
17:57
well. And AI for me is still very,
18:00
very uncharted and about globally.
18:03
And you know, if we look, if you look what's going on globally
18:05
with the Vidian, you know, they're basically building out
18:08
all this AI infrastructure. And I think the, the lower
18:11
hanging fruit that we're seeing AI in Africa is with data
18:13
centers and you know, the, the data centre play is going to be
18:18
huge in terms of an understanding, some
18:20
acquisitions, obviously a main one, but Equinix and other
18:24
players. But I still think there's a long
18:28
way to go. I'm not seeing yet.
18:32
I mean, we do have a showcase, an investment showcase, which we
18:35
invite all ventures to to apply for and then we will showcase
18:39
them at Africa Tech Summit Nairobi in February.
18:43
And so there may be some there and I think what right now we're
18:47
seeing a lot of is huge focus on web three stable coins and a
18:53
whole variety of themes on stable coins and payments.
18:58
And so it is another play on, I suppose Fintech into Web 3.
19:02
And but you know, as you know, if you go across the continents,
19:07
stable coins are, are being used and have been used for years and
19:11
they're used effectively to hedge against currency.
19:14
And so there's a lot of businesses who want to interact
19:17
using stable coins and Web 3. So in terms of unicorns, look, I
19:24
think fintechs obviously still #1 and we, if we, if we look at
19:28
the funding rounds that have happened in the last, in the
19:31
last six months and some of the, some of the fintechs, you know,
19:34
there will be, there will be some, some big returns there.
19:37
And I think I, I also have a, a feeling that, you know, all
19:41
these, all these slower, slower periods also turn up massive
19:46
opportunities for mergers and acquisitions.
19:51
We saw that with the the logistics play in Egypt and and
19:55
Kenya, whose names are escaping me and.
20:00
Come to me in a moment and you know, so they, you know they,
20:03
they merged with Soko they merged, you know, two years ago
20:08
with an Egyptian player and become a much bigger
20:12
organization. So I suppose the route to to the
20:16
Unicorn status is maybe not just all about funding.
20:19
It's also about market size and scale and, and, and some some
20:23
players combining and for example, if you looked at some
20:26
of the fintechs in Kenya merging with the fintech in Nigeria, I
20:30
mean suddenly you've got a behemoth of a market.
20:33
And fortunately, I think, you know, we still are looking at
20:40
those sectors, but there are some breakaways.
20:41
The EV, you know, electronic vehicles, motorbikes and things
20:47
like that are getting more and more prevalent and across the
20:51
continent much more focused on clean energy.
20:54
And so, yeah, but there's a lot of, there's a lot of good,
20:58
there's a lot of good stuff and a lot of good sectors still
21:01
there which are green interest. Yeah, because we've seen, you
21:06
know, especially around, you know, companies like, you know,
21:09
this Bureau raising almost $100 million just the other day.
21:13
So a lot of tension is really, it's quite interesting actually
21:15
that they're getting clean tech. Yeah.
21:21
Yeah. Look, I think AI like there is
21:23
a, there is a if, if we look at the AI piece across across the
21:28
US and and this huge, huge race going on between the US and
21:32
China and and I would say Europe maybe to some extent is a bit
21:37
further behind. But yeah, it is interesting to
21:42
think what what is that piece? What is going to be that piece
21:45
of AI for Africa? And what, you know, is there a
21:49
country that can really say, you know, really harness it and say,
21:51
well, we're going to be a centre of excellence for AI and
21:55
massively back these data centres and scientists to come
21:59
in and, and to to really go for it.
22:04
Yeah. Yeah.
22:05
All right. Thank you, Andrew.
22:06
No, I think it's so you know, you mentioned about revenue
22:08
earlier on and I think right now what we've seen is there's a lot
22:11
of investor, you know, the investor focus seems to be
22:15
really shifting from, you know, let me invest in a, you know, a
22:19
growth at all cost startup, you know, to clear now measurable
22:23
traction. And you know, how has this
22:25
changed the conversation you're facilitating between startups
22:28
and investors? I mean what what new metrics are
22:31
this is looking for now in 225? Yeah, I suppose some investors
22:38
will evolve will say that they they've always looked at the
22:41
same things, you know, what's your, what's your clear and
22:44
definable market and and revenue.
22:47
But yeah, I agree with you completely in the last, in the
22:50
last two years, it's definitely swung really towards, you know,
22:56
revenue customers and and pay addressable markets versus we
23:02
have this great idea, give us give us the money and we'll
23:04
we'll prove it'll work. And as we spoke about earlier, I
23:09
think on the VC side, investors now have much more of, you know,
23:14
the pendulums completely sewn towards the investor and, and
23:17
they are picking and choosing where they want to, where they
23:20
want to put money versus, you know, any idea 2-3 years ago was
23:25
getting money and whether it was true syndicates or Angel, Angel
23:31
networks or, you know, there was so much money because people
23:35
were afraid of, of FOMO, you know, And so, but I think I
23:41
think it comes down to, you know, the addressable market
23:44
and, and as it, as we lived earlier as well, you know, with
23:47
the economic situation in a lot of the African markets, the main
23:51
markets with currency and, and local economic issues.
23:56
And there are some of these more luxury services or delivery
24:04
items or, you know, hardly sustainable when the consumer
24:07
currently is feeling the pinch as well.
24:11
So I think there, there is more of a focus.
24:14
I, I am seeing a lot more towards Agri in particular and
24:17
food security because people like, well, actually the cost of
24:19
importing goods versus US grounded stuff and, and at scale
24:24
and then exporting is, is huge potential.
24:29
So I think we're looking at, we're also looking at supply
24:31
chains and, and what can be produced and value added in
24:35
across the continents as well. And there's, there's a lot, a
24:38
lot more focus on that as well. And if you look at that gallery,
24:42
what he's done in Nigeria with, with, with, with his, with his
24:47
fuel plants. And yeah, it's a game changer, a
24:50
game changer for, for, for, for Nigeria in terms of dollars and
24:54
naira. But if we look, if we, if we
24:56
transfer that into the technology space and actually
24:59
start to think about, OK, what can we produce here and using
25:03
technology and not be just, you know, importing and and and and
25:08
then exporting the value for somebody else to benefit.
25:11
I think there is great comparisons there.
25:14
If you look at some of those other areas of climate and and
25:16
food security agree and EV, you know, there's just huge
25:22
potential. Yeah.
25:25
And of course, you know, this is potash.
25:27
But now the big four, of course, Egypt, Nigeria, Kenya and South
25:32
Africa, they always in that conversation, you know, and they
25:34
still attract most of the capital.
25:37
The one thing we've seen this year is Egypt.
25:40
Egypt's growth this year has been pretty impressive actually.
25:44
I mean, are you seeing genuine investor interest or capital
25:47
flow into now emerging markets, emerging hubs like Rwanda, Ghana
25:51
and Francophone Africa? I would say smaller and like by
25:58
definition, like some of those markets are, are smaller.
26:02
I think Francophone as a whole, as a group of countries, yes.
26:06
And you know, if you look at wave raise 137 million and in,
26:11
in, in the mobile money space and there is like, I think
26:16
Francophone is very much under the radar, especially when when
26:19
we're all speaking English and, and we're not really keeping an
26:22
eye and as much on what's going on in those markets.
26:27
I'm definitely seeing a lot of a lot of in Ivory Coast and
26:33
there's much more growth and some some Senegal as well and
26:39
Rwanda and Ghana. I think Ghana, Ghana has kind of
26:42
hit the bottom in terms of what went through its own economic
26:44
issues and starts is, is coming back up.
26:47
And there are some interesting companies there like Affinity is
26:50
a neo bank in Accra and as, as you know, raise some good
26:55
capital and is, is start rolling out as neo banking in, in Ghana
26:59
as well. And so there is, there is some,
27:04
you know, spots where, where, where, where, where stuff is
27:06
beginning to happen. And I think DRC has been talked
27:09
about as well and very much under the radar.
27:12
But you know, in terms of, I'm seeing that, you know, some of
27:15
the, some of the big African banks are now starting to have a
27:17
much bigger presence in, in, in Kinshasa and DRC because they
27:21
see that there is a lot more future potential.
27:25
Obviously there's, there's some political issues across, you
27:29
know, regional parts of the country and conflict, but I
27:33
think DRC is, is definitely one to watch for the future as well.
27:38
I wouldn't say that there's, there's huge amount of funding
27:40
flowing in there, but I think it takes, you know, it takes a
27:44
while for an ecosystem to build and for, for.
27:47
But if we look at the market size, you know, as well, it's
27:49
huge. Yeah, OK.
27:52
And even, you know, you know, as we talk about this, you know,
27:54
crazy funding round that these status are raising.
27:57
One challenge that still proceeds though is now the
27:59
gender funding gap. Even as, you know, overall
28:02
investment, you know, keeps going up, female like startups
28:06
are still receiving, you know, only a tiny fraction of the
28:08
total capital being raised. And you know, you know, as an
28:11
ecosystem connector. You know, Andrew, what practical
28:14
interventions do you think actually needed to move the
28:17
needle here? Yeah, pretty good question.
28:21
It's a perennial problem, I would say.
28:26
You know, if I if I look at absolutely take someone on its
28:30
own. And we've always tried to strive
28:34
to have as many female stakeholders and leaders across
28:40
the whole, across the whole event.
28:42
But I'll be honest, it's, it's, it's, it's a, it's a challenge
28:50
because a lot, I'll give you examples.
28:52
We had a, we had a, we had a, we had a CEO of, of a female CEO
28:57
of, of a company fintech. And then we'd avoided speaking.
29:02
And it's like, I won't go, but I'll send my COO who's, who's a
29:05
male. And we're like, no, we don't
29:07
want him. We want you.
29:11
And there are very, very few, not few, but def definitely
29:16
less, less than men. So it is tricky in terms of
29:21
trying to trying to address that balance.
29:25
But I, I also believe there are some great initiatives which
29:29
change which can and it comes and also comes from funding very
29:32
like on the climate piece. Once the, once the investment
29:35
thesis is we must invest in female founders.
29:37
And then if the money starts to look in that direction, it will
29:41
find female founders. And so IFC last year in Africa
29:46
takes someone had a showcase around showcasing about 20
29:51
female founders from across the continent, which was excellent.
29:54
And, and they, you know, they made it their mission to go and
29:59
really showcase some of the best female led businesses across the
30:03
continent. TL com and VC fund.
30:08
They also have a focus on female founders and some of their, some
30:12
of the work that they do. So they're, you know, have an
30:14
annual female founders event and there are other female founders
30:20
events as well. But yeah, it is like if we look
30:23
at it, it's it's it's still a massive disparity between male
30:30
and female LED companies. And you know, I think if we look
30:37
at it, some of the strongest founders I've seen in Africa are
30:40
female. You know, some, some women
30:43
who've led some really good businesses have been, have been
30:47
female founders. So I think, I think it's a
30:52
combination of both from the investment piece.
30:55
So investors are actually saying and having a gender lens and
30:58
saying we need to only invest in female founders or there are
31:03
like rising tide with another investment syndicate in, in, in
31:07
Nigeria that was looking at only women as well.
31:10
So there are some female LED phones and female LED investment
31:17
bodies that are really just flying the flag.
31:19
And also look at booking. I think it will, I think it will
31:22
take time. But if I look back, I suppose
31:25
6-7 years ago versus now, it's there is some improvement, but
31:32
there's a long way to go. OK.
31:35
OK. Thank you so much, Andrew, You
31:37
know, for those really interesting insights around, you
31:39
know, the state of start of funding in Africa in 2025.
31:43
For now, I'd just look ahead now and talk about the Africa Tech
31:46
Summit briefly. So it's coming back to Nairobi
31:49
in February 2026. And of course, this is one of
31:53
the most anticipated gatherings of tech leaders, investors,
31:57
innovators, you know, in Africa. And you know what's the single
32:02
biggest theme of conversation you want to champion at the
32:06
summit? I mean, for us, it's quite
32:11
broad, the event, but the number one point for us is connection.
32:16
And you know, we, you know, our, our tagline is where African
32:20
tech connects because ultimately our job as conveners and
32:25
curators is to get the right people from across the continent
32:29
and also globally in to African texts in, in, in Nairobi.
32:33
And so I, I would say, look, there are within each umbrella
32:39
of the events tracks, you know, there are different, there are
32:43
different themes, of course, but I think right now the biggest
32:48
and most important thing is business.
32:51
I think when we start in Africa, Texas, the, I would say 80% of
32:58
people are coming to raise money.
33:00
And I think that's dramatically changed now over the last
33:04
probably four more to five years where it's become more of a
33:08
trade show. So people are coming to do
33:10
business rather than just to raise capital.
33:12
So for example, Money Points who have been who've been a sponsor
33:15
for a number of years, Money Point that raised $90 million
33:20
last week, Money pointed out coming to Africa and take
33:23
someone to raise capital. While they may meet new
33:26
investors or whatever, but they're coming to do business
33:29
and they're coming to meet other partners from across Africa to
33:32
do business with them. And I think that that's one of
33:35
the, one of the, the most positive things I'm seeing
33:39
around the ecosystem and also how our event has changed that
33:44
it's no longer everybody's looking to raise money.
33:47
It's now very much a business to business transaction across the
33:52
continent. And that and that that's, that's
33:54
critical because revenue is, is a lifeblood and revenue drives
33:59
cash flows. And then actually they don't
34:01
actually need to go and raise more equity and they can go get
34:04
debt. And as we as we, as we spoke
34:06
about earlier. Yeah.
34:10
OK, interesting. And you know, you mentioned
34:11
tracks and you know, you know I was going through the website
34:14
and I saw you've structured the summit around the four tracks
34:18
that is money and decentralized finance.
34:20
We are looking at climate tech and investment, startup and AI
34:24
and digital. Why these were specific pillars
34:27
for 2026? Money in D5 has been has been a
34:35
regular in terms of covering everything that's going on
34:38
across fintechs, payments, banking and then the Web 3 space
34:44
and bridging those two, those two.
34:47
So everything from from web three stable coins to
34:53
centralized finance smart contract.
34:55
So that's always been a very, very strong pillar.
34:58
And as as we now like across the continent, fintech has been, has
35:02
been pretty the the leading force.
35:04
And so that that's that one climate, climate taking
35:08
investment as we said earlier, and we launched climate tech an
35:12
investment summit three years ago.
35:15
And really because we saw the need to bring people together in
35:20
more of a specific group grouping.
35:23
So investors within that space, corporates and innovators.
35:29
And if you look at the funding, as we said earlier, like 3039%
35:33
of overall funding in 2025 has gone to climate tech and
35:38
investment ventures. And so, so I suppose the climate
35:44
piece doesn't fit in really into some of the other tracks.
35:46
So we, we thought that that needed its own startups being
35:49
there from the, from day one and it'll always be there, which is
35:52
bringing together ventures around venture building,
35:54
investing and having, I suppose one of the strongest points of
35:59
Africa tech. Someone has always been that we,
36:01
we do attract some of, you know, the leading investors from
36:04
across the continent and outside of Africa.
36:06
So I think last year with over 150 investors and different
36:10
groups and VCs and Angel groups. And so, you know, funding is of
36:16
course still still a big piece for everybody as well.
36:19
And then we within the startup somewhat we, we, we also cover
36:22
different verticals that maybe aren't covered within the other,
36:25
within the other tracks. So health tech, e-commerce,
36:28
logistics and and yeah, I suppose new for new for next
36:32
year is the AI and digital piece, which you know, AO is,
36:37
has always been part of the event in, in the last couple of
36:40
years. But again, needs, I think a
36:41
specific grouping and focus track on, on with, with, with
36:47
both on the policy side, because I think that's going to be huge.
36:50
And, and also on, you know, the business side.
36:54
And, and I think AI, as you know, is like such a big, such a
36:59
big term, a buzzword. But like there's some companies
37:01
are like, OK, well, how do we actually make this work for us?
37:05
How can this generate revenue for us?
37:07
And so I think we're looking for more deeper dive conversations
37:10
into the business of AI for, for, for a company in Kenya or
37:15
Nigeria or Egypt and, and how they can actually embed the
37:18
technologies into their into their organizations and
37:22
companies, then building on that as well.
37:25
So on the digital side of that sort of that track is, is look
37:28
more in e-commerce, creative, creative industries as well
37:31
gaming. So I suppose, I suppose, why do
37:35
we pick them? It's hard to have a track for
37:38
everything. And what I would say is that
37:43
the, the agenda is not just listed around those four.
37:46
We have a whole series of master class sessions.
37:50
I think we had 20 master class sessions last year where they go
37:53
off in different, different directions as well.
37:56
And I would also say the great thing about the event now is
37:59
that there's a lot of side events in various different
38:03
topics and categories that go off in different areas as well.
38:06
So it's become a great week outside of Africa take someone
38:10
as well and where people also collaborate and come together.
38:15
Yeah, OK, interesting. You know, you already answered
38:16
actually one of my questions around, you know, the end it was
38:20
on the track, but now the climate tech and investment
38:23
track also is really, really, really find very interesting.
38:28
Would you say you know the investment landscape for Africa
38:31
climate tech start-ups is maturing or is it still largely
38:35
driven by concessional and development finance rather than
38:39
mainstream VC? I would say both I think, I
38:44
think what we're seeing is some of the DF OS have you know
38:50
invested in VC funds for them to to go out and do better.
38:57
For example, Catalyst Fund, Novastar Ventures, you know,
39:02
these types of companies are FC VCs have been looking at this
39:07
space for a long time, but they're now getting mandate and,
39:12
and, and and have raised phone their own dedicated VC phones
39:18
being backed by, by by Dfis and other organizations for a Nova
39:21
star have brought in, you know, some Japanese capital which
39:25
wants to really, really look at, you know, what's going on in,
39:28
in, in some of those climate tech solutions EV in, in Africa.
39:35
So I, I think it is, it is mainstream.
39:39
It's not just DFO. Because when suppose if I got
39:42
back 10 years ago, if you, if you, you know what was climate
39:46
tech in Africa? And I would say actually, to be
39:49
fair, Kenya and some of Africa invented climate tech.
39:53
And because Kenya was doing pay as you go solar forever became
39:58
before I ever became climate tech, it was pay as you go
40:01
solar. And then if you look at Agri,
40:04
Agri is one of the biggest areas, you know, if we look.
40:08
2008 910 you know, everyone was creating Agri data points and
40:13
services for farmers. They're like we had like, oh, we
40:16
got back. Well, we farm people like that
40:18
were were developing analytics for farmers and and someone had
40:22
never really got to a mass scale where they could.
40:26
They could really. But now I think if we're
40:30
amalgamating Agri more with like, you know, growing, growing
40:33
stuff better hydroponics and mass production of agriculture
40:38
using using technology as well. So there's there's much more
40:42
embedded in information drones. And I think I we take is now
40:49
maybe amalgamated four or five or six different pieces that
40:53
were of, of technology before then and are now becoming
40:58
bohemians in terms of agricultural production.
41:01
So using IoT, using drones, using hydroponics, using data
41:07
analytics, you know, adding all those pieces together now is
41:11
becoming a much more bigger opportunity than it was.
41:18
And the technologies also has dramatically increased in the
41:22
last, the last 10 years as well. But I think climate tech is
41:27
definitely, I would say it is mainstream, yeah.
41:29
I, I think, you know, versus versus what we saw 7-8 years ago
41:35
in Agri, it was, it was a very, it was DFI LED.
41:38
Now the climate tech solution is definitely being pushed by VC
41:43
and and a lot of backing from from Dfis as well.
41:46
But, but I think what is what, what are we solving here?
41:50
We're solving a massive problem. You know, we're solving like
41:54
we're solving a huge problem with, with deployment, with
41:57
deployment technology, with electronic vehicles, with
42:01
agriculture, food security. So these are like, these aren't
42:04
like, will the market be there? The market's there.
42:07
The market is there. And VCs are beginning to see
42:11
that the market is there. I would say that maybe the
42:13
metrics are slightly different and VCs aren't maybe looking at
42:17
the returns that they're looking from a fintech and they probably
42:20
won't get the same returns that they'll get from a from a
42:22
fintech versus, you know, an agritech or, or, or other.
42:28
But I think the capital that's been invested is a bit a little
42:32
bit more patient in in that space.
42:36
All right. And I know for the for the money
42:39
and that is central finance track.
42:41
What do you think is the most urgent conversations to have
42:43
right now? Is it regulation?
42:45
We've seen it being a very big thing, of course with Kenya
42:47
passing the things like the virtual assets being, you know,
42:50
is it cross-border payments, you know, or the just the
42:53
practicability, the practical utility of three tech just
42:58
beyond the speculation. Yeah, good question.
43:02
I think I think for us as an Africa tech Summit, you know,
43:05
it's really, really important to have everybody in the room.
43:08
And so having the regulators and if we look at what's happened in
43:15
the web feed space in terms of regulation, even in the last six
43:18
months, we have in Ghana, they, they announced that the Bank of
43:22
Ghana announced the digital assets bill, the Kenyan
43:26
ecosystem as well as a, as a bill.
43:29
And so policy and regulation. And again, if we step back 2-3
43:34
years ago, everything was like crypto's bad, ban crypto.
43:39
Now most both governments in Africa are saying, OK, South
43:44
Africa's already started to license companies.
43:47
So this is here to stay now. So I think it's having those
43:51
discussions with policy makers and regulators on stage is
43:55
really important. And I think to that point, most
44:01
of the web three companies, the bigger ones want to be licensed.
44:06
They want to be licensed because they want to operate legally and
44:11
they've had to wait for the regulators in certain markets to
44:14
catch up. I'm home.
44:17
But obviously the USI think what's happened in the US this
44:20
year as, as we'll sit, you know, has set the tone globally for,
44:24
for Web 3 because now it's like, right, well, if the US is going
44:27
to regulate this stuff, we should regulate this stuff.
44:30
And I think, you know, if we look at the tax implicate
44:35
implications of, of, of licensing, some people is, is
44:38
this, this stuff can generate revenue for, for governments
44:41
that are strapped currently for revenue.
44:44
And, but I think if we look across web 3:00, there's a lot
44:47
of, there's a, there's a, there's a cross section of
44:49
what's going to happen between AI and Web 3, which is quite
44:52
interesting as well. And stable coins, payments,
44:56
remittances and it's in I, I think that the Web 3 market as
45:02
well has bounced back from maybe two years ago when it was
45:05
depressed. So everybody went crazy and
45:08
developed Web 3 stuff. Then the market crashed.
45:11
Everybody, not everybody, but a lot of people stopped building.
45:15
And now we're seeing a resurgence again in web three
45:19
companies. I, I was in Lagos, you know,
45:23
recently and the amount of stuff that's been built on Web 3 is,
45:27
is astounding. So, so for us, it's, it's
45:30
bringing those all those conversations together and
45:32
bringing all those people together.
45:35
All right, Thank you. Thank you so much, Andrew, for
45:37
just spending time to join us on these, you know, virtual podcast
45:40
recording, you know, and of course, we look forward to, you
45:43
know, of course, interacting more and, you know, having more
45:47
of these conversations, you know, at the summit in February.
45:49
But now, just lastly, what I found or an investor attending
45:53
the Africa Tech Summit 2026. You know, what's that one
45:56
connection or insight should they walk away with?
46:01
And I would say on our side as as curators of Africa Tech,
46:07
someone success is doing business they should they should
46:14
leave our events and haven't, haven't, haven't met the right
46:19
person, haven't driven their business forward.
46:22
I think, I think for us that's also a failure could be if they
46:25
don't. So for us, it's really, really
46:28
important. We put a lot of time and effort
46:31
in getting the getting everything built well around the
46:34
event, around the event app for people to connect, for people to
46:37
meet, multiple networking events, multiple parties,
46:42
lunches. So I would say the best piece of
46:46
voice is to get plenty of rest. And then the you know, for us as
46:52
an organization, it's it's that people leave and have done
46:55
business with somebody in a different part of Africa or
46:58
globally who's going to drive their business forward.
47:03
Yeah. So I think we've also built in a
47:05
number of tools as well. But in the events, we have a
47:07
deal book for for a start up is coming and he and he and he
47:12
start up can it can submit a deal into our deal book that
47:15
goes to the investors who are coming.
47:17
So before anybody's even landed in Nairobi, the investors, we're
47:21
connecting the investors and the founders.
47:23
And so the investor has a full list of deals that are at the
47:26
event and the founder has got his deal to the leading
47:29
investors who are attending. And, and then it's really up to,
47:33
you know, those two parties to really push on, use the network
47:36
and app, arrange meetings and, and move forward.
47:40
And but on the trade show side, the exhibition, you know, I
47:43
suppose it's for people finding customers and, and selling their
47:47
products and services across the continent and and beyond with,
47:50
with international partners as well.
47:52
I think for next year, we're already seeing a lot of traction
47:55
and some very, very interesting partnerships coming in.
47:58
And so, yeah, I think I think it's, it's, it's, you know,
48:02
coming back to your point around, you know, the funding
48:05
and the, the winter, I do think we we've probably hit the
48:07
bottom. I think we're seeing a lot more
48:11
positivity towards 2026 already and some markets have
48:15
stabilized. And I think, yeah, let's, let's
48:18
see what happens to 2026 and hope everyone can make it to
48:21
Africa Tech Summit, Nairobi. All right.
48:24
Thank you. Thank you so much, Andre, and
48:25
really appreciate for you finding time in joining us for
48:27
these, you know, episodes. Always find time for tech trends
48:32
Always find time for tech trends.
48:34
One of the best publication. Thank you.
48:36
Thank you very much. Really appreciate this point.
48:40
Thank you. Good.
48:49
Well, and that brings us to the end of today's conversation.
48:54
I will thank you to Andrew Fascinate for joining us and
48:58
shedding light on the realities of Africa's funding landscape.
49:03
Not the high, not the headlines, but the deepest structural
49:08
Shields shaping where opportunity leaves today.
49:12
If there's one thing to take away from this episode, it's
49:16
that African tech isn't just bouncing back, it's evolving.
49:22
The ecosystem is becoming more disciplined, more diversified,
49:27
and more strategically aligned with the real world problems and
49:32
long term value creation. And that's an incredibly
49:36
promising sign for founders, investors, and the continent as
49:41
well. As always, you can find more
49:44
insights, news updates, interviews, podcast lefies and
49:49
eco CCM analysis on techtrendske.co dot KE.
49:53
And don't forget to follow the podcast wherever you are
49:57
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50:01
valuable, share with a colleague, founder in your
50:04
network or investor who needs to hear this conversation.
50:10
I'm Nissan Canali and this has been the tech transport cast.
50:14
Thank you for listening and until next time keep building,
50:18
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50:27
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