African startups are increasingly turning to debt as a mainstream funding option, marking a shift in how the continent’s tech ecosystem finances growth. In 2025, startups raised a record $1.64 billion in debt, pushing debt’s share of total venture funding to 40% for the first time, according to Partech Africa.
This rise reflects a maturing market, where more companies can demonstrate predictable revenues and steady cash flow. While equity funding is slowly recovering after a sharp post-pandemic correction, debt offers founders a way to fund operations without heavy dilution.
Development finance institutions remain key lenders, but commercial banks are also stepping in. Together, modest equity growth and surging debt suggest African tech has entered a more disciplined, normalized phase.
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The financing is designed to cushion energy costs while supporting Botswana’s private-sector and jobs reforms.