Funding for African Startups Reached $2 Billion in 2021, with a Paltry 10% Attributed to Businesses Led by Female Entrepreneurs
In the dynamic African startup ecosystem, top active investors like Visa, Mastercard Foundation, Google for Startups, UNICEF, and others have shown a strong focus on the fintech sector. Companies such as Nigerian digital banks Kuda and FairMoney, Kenyan insurtech Turaco, Nigerian paytech Flutterwave, and Senegalese mobile money provider Wave with a $1.7 billion valuation, have benefited from this investment. These investors prioritise funding fintech startups that aim to enhance financial inclusion, digital payments, and financial services accessibility across Africa.
However, a concerning trend has emerged when it comes to gender diversity in leadership and funding. In 2024, funding for female-led and female-founded ventures in Africa reached a five-year low, with male CEOs receiving $2.2 billion in contrast to the $48 million received by their female counterparts. This disparity is further highlighted by the fact that, over the past five years, male-led teams have, on average, captured nearly 90% of total funding in Africa.
The situation improved slightly in 2025, with gender-diverse teams receiving $123 million in funding. Yet, female CEOs still only managed to secure 2% of the total invested, according to 'Africa: The Big Deal'. Solo female founders or all-female founding teams received $21 million in 2025, a significant increase from the $48 million they received in 2024, but still a fraction of the funding received by male-led startups.
The Africa Venture Pulse report by Briter has highlighted the funding gap for female-led teams over the past five years. Despite the overall decrease in the number of deals in African startups since 2022, the deals that occurred in 2025 were larger, leading to a higher average amount of money raised per deal.
There is some positive news, though. The total funding announced so far in 2025 is double what it was at this time last year. Sectors such as health startups have received over $150 million in funding, and cleantech companies have received over $950 million.
While progress is being made in certain areas, it is clear that more needs to be done to address the gender funding gap in African startups. As the continent continues to grow and develop, it is essential that all entrepreneurs, regardless of gender, have equal opportunities to secure funding and build successful businesses.
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