DFI Venture Funding Plummets 87% as Africa Shifts to Domestic Capital

Africa-focused venture capital fundraising fell 87% year-on-year in 2025, with Development Finance Institutions (DFIs) accounting for just 27% of commitments compared to 45% historically. The $107 million raised marks the first $100M+ close since 2021. This decline reflects global macroeconomic pressures and DFIs prioritizing climate finance over high-risk venture exposure. Domestic investors and African corporates now dominate fundraising, requiring startups to adapt pitches for strategic partnerships and commercial viability.

SOURCE: https://techcabal.com/2026/02/23/development-capital-financed-africas-venture-boom-its-now-slowing/