Delegates at the annual conference of the African Private Capital Association heard that the continent’s private capital market is entering a more pragmatic phase, marked by record venture backed exits in 2025 despite continued fundraising challenges. The development was highlighted at the association’s 22nd Venture Capital Summit held in Nairobi, where investors, founders, and policymakers gathered to assess the evolving investment landscape across Africa.
Speaking at the opening session, AVCA Chief Executive Abi Mustapha Maduakor pointed to a notable shift in the structure of capital flows, with increasing emphasis on local funding sources, expertise, and investor confidence.
While venture funding across Africa has slowed from previous highs in line with a broader global pullback in risk capital, the continent still recorded a 25 per cent rebound in 2025, reaching 3.4 billion dollars. Participants noted that the slowdown is prompting a necessary recalibration in how capital is deployed and managed within African markets.
Industry experts argued that Africa’s venture capital ecosystem is still in its formative stage, with Tidjane Deme of Partech Partners stressing that comparisons with more mature markets such as the United States may be misleading.
Data presented by Mohamed Eissa of the International Finance Corporation showed that annual venture deals have expanded significantly over the past decade, rising from about 30 transactions to over 500 in 2025, while total investment surged from roughly 400 million dollars to about 4 billion dollars. However, stakeholders acknowledged that regulatory complexities and fragmented demand continue to shape investment outcomes and timelines.
The issue of exits remains central to investor concerns, with initial public offerings still limited across the continent. As a result, mergers and acquisitions have gained traction, rising by 72 per cent in 2025 and emerging as the most viable pathway to liquidity.
Industry leaders including Patricia Rinke of AfricInvest and Andreata Muforo of TLcom Capital called for stronger collaboration among investment funds to support this trend. Meanwhile, calls intensified for domestic institutional investors to increase participation, with Alex Rumanyika of the National Social Security Fund Uganda urging pension managers to diversify beyond government securities.
Alongside this, private credit is emerging as a complementary financing option, with firms such as Ninety One and BluePeak Private Capital highlighting the need for resilient investment strategies that can deliver consistent returns in a maturing but still complex market environment.