GDP growth remains steady in all five markets in 2025. We are seeing rising inflation in Nigeria and Kenya in the past two months but it is cooling in the other markets. All markets maintained their MPC rates in January. Unemployment rate is rising in Kenya and Egypt but dropping in Morocco and Nigeria as it remains flat in Ghana.
January recorded 6 times more VC amount raised than in December, with 14 startups raising capital compared to the 11 in December. South Africa led in the number of deals while Nigeria led in the total amount raised. Kenya is back to raising capital. Morocco and Ghana recorded zero VC raises.
Successfully implementing the $2.8 billion debt relief agreement and exercising prudent economic management will enhance Ghana’s creditworthiness, attract foreign investment and further bolster economic growth.
Egypt is expected to utilize the $1.2 billion IMF disbursement, along with any future funds, through a multi-faceted strategy to tackle its economic challenges. While monetary tightening measures are already implemented, these funds could support social programs designed to alleviate the effects of high inflation on vulnerable populations.
Donald Trump’s policy of deportations, particularly targeting undocumented immigrants, will potentially lead to a decline in the number of African immigrants in the U.S., directly reducing the volumes of remittances sent back home.
January saw more startup VC activity than in December, with the amount raised being 6 times more. ($121M vs 21M and 14 startups vs 11).
Nigeria continues to lead in the amount of capital raised, but South Africa led in the number of startups raising capital. Kenya is back to raising capital but Ghana and Morocco failed to record a single startup raising capital in January.
Fintech continued to dominate in the number of startups raising capital (5).
$121 million raised by African startups in January 2025 is a strong start to the year as it indicates sustained investor confidence in the African startup ecosystem. Despite global economic uncertainties, investors are still deploying significant capital into promising ventures on the continent. A strong January is expected to set a positive tone for the rest of the year, attracting more investment and encouraging further entrepreneurial activity. It creates a sense of momentum and excitement in the ecosystem.
