Africa has emerged as one of the fastest-growing ICT markets in the previous decade, because to rising technological and mobile usage, which is fueled by a young population.
As a result, many industrialized economies have allocated significant financial resources to technology initiatives in the region.
External investors include Japan and the Gulf States, which have invested a total of $180 billion on technology across Africa.
According to various ecosystem studies, investor participation data, and deal trends, Briter Intelligence’s comprehensive 2025 analysis of Africa’s venture landscape shows a growing business that is no longer reliant on the boom-bust cycles of European and American venture capital.
African tech companies’ overall tech financing increased 33% year on year in 2025, signifying a strong return after a 35% reduction in 2023 and another 25% drop in 2024.
In November alone, entrepreneurs raised $162 million, with stock accounting for 79% of the total. While not a record month, it was the fifth-highest in 2025, about equivalent to November 2024 ($181 million) but lower than November 2023 ($267 million).
Across the continent, 32 businesses raised $100,000 or more, with 16 companies getting $1 million or more.
These statistics were obtained despite a sharp drop in Western financing.
While North America (mainly the United States) and Europe (particularly the United Kingdom and France) continue to have the most headquartered funders, their presence has diminished.
This fall reflects broader dynamics such as global risk aversion, rising interest rates, and the market correction that occurred after 2022.
Rather, last year, Africa’s digital scene was revolutionized by prospective, diverse investment from Asia and the Middle East, as well as critical support from Development Finance Institutions (DFIs) and an emerging local African base.
With over 60 direct funders and over 190 investments in about 30 industries, Japan has quietly established one of the most significant footprints in Africa’s evolving tech economy.
According to BusinessDay, Japanese organizations such as JICA, JBIC, and JETRO, blue-chip corporations such as Mitsubishi, Mitsui, Sumitomo, Toyota Tsusho, and Sony, major banks such as MUFG, SMBC, and SoftBank Vision Fund, and specialized venture capital firms such as Samurai Incubate, Kepple Africa Ventures, UTEC, and Global Brain are now part of Africa’s diverse funding pool.
“After years of learning, Japanese investors are now more deliberate in their interactions with both startups and funds.” What is also intriguing is the mix of public and private finance coming from Japan, which brings not just funding but also different financing structures, supply chain support, and entry points into new markets,” said Riki Yamauchi, director at Novastar Ventures.
Japan’s shift from aid to context-sensitive venture financing aligns with bigger Asia-Africa corridors, enhancing strategic partnerships that extend beyond one-time transactions.