Africa’s Startups Attract US$1.88 Billion in German-Backed Deals -Report

Africa’s startup ecosystem has drawn significant German investor participation over the past decade, with founders across 19 countries securing deals worth $1.88 billion through German-backed syndicates.

 

This is according to a landmark report launched Friday at the Friedrich Naumann Foundation East Africa in Nairobi.

 

The Germany-Africa Investment Report: A Decade of Capital Flows & Ecosystem Growth (2015- 2025), released by the Africa Investment Bridge initiative, documents how African founders particularly in AgTech, Fintech, and HealthTech have built compelling businesses that attracted 784% growth in German deal participation between the foundation phase (2015-2019) and scale phase (2020-2025).

The Nairobi launch underscores Kenya’s position at the heart of this investment corridor: the country leads all African markets with 50 German-backed deals over the decade, cementing its role as East Africa’s premier innovation hub.

 

The report comes at a decisive moment for the continent. Africa is the fastest-growing region globally, with GDP growth projected at around 4% annually. The African Continental Free Trade Area (AfCFTA) is connecting 1.3 billion people in the world’s largest free trade zone by population, and by 2030, one in five people globally will be African.

 

Yet African startups received just 0.6% of global venture capital in 2024 a gap that represents both a market inefficiency and an untapped opportunity for international investors willing to engage through structured partnerships with local fund managers and ecosystems.

 

“The data tells a clear story: African founders are building solutions that work in agriculture, financial services, health, and climate adaptation,” said Sebastian Gentry, Head of Programs at the Westerwelle Foundation.

“This report is designed to reduce the information asymmetry that keeps international capital on the sidelines. When investors engage through trusted local partners and  proven structures, they access not just returns, but participation in one of the most significant economic transformations of our time.”

Kenya emerged as the leading destination with 50 deals, reflecting Nairobi’s position as East Africa’s
innovation hub. Nigeria followed with 34 deals, while Tanzania’s growing ecosystem attracted 24 deals—a notable signal of German investors’ willingness to look beyond the traditional “Big Four” markets.

 

South Africa (19 deals) and Ghana (17 deals) rounded out the core corridor, collectively representing 77% of all transactions.

 

African founders in AgTech and Fintech captured 51% of German-backed deals, reflecting the continent’s leadership in mobile money innovation and agricultural technology. Health and Education emerged as growing priorities in the 2020-2025 period, aligning with Africa’s structural development needs and demographic dividend.

 

The report identifies that German syndicate exposure peaked at $565.5 million in 2023 before
declining sharply—a pattern the authors attribute to mega-deal concentration rather than
ecosystem weakness. African startup funding rebounded to $3.8 billion in 2025, with volumes up
32% and deal counts rising 8%, pointing to a market that is maturing and becoming more globally
connected.

 

For African fund managers and ecosystem builders, the report offers strategic recommendations on
strengthening LP communications, improving reporting transparency, and building co-investment
networks that can channel more international capital to the continent’s founders.

 

The Africa Investment Bridge is implemented by the Westerwelle Foundation in partnership with
GIZ SPARK, commissioned by the German Federal Ministry for Economic Cooperation and
Development (BMZ), and co-financed by the European Union