African agtech funding drops to $170M in 2025 as debt overtakes equity for first time
- Startups in Africa's agtech ecosystem raised less than $170 million in 2025, with equity accounting for less than half of total funding for the first time.
- Equity funding in African agtech fell from approximately $328 million in 2022 to roughly $80 million in 2025.
- Non-equity instruments, including debt and blended finance, now make up the majority of capital deployed in the sector.
The transition from equity to a more diverse funding landscape in African agtech is a positive development that reflects the sector's maturation. This shift not only addresses the unique operational needs of agtech businesses but also encourages sustainable practices. However, it poses challenges for founders and investors alike, necessitating a deeper understanding of the sector and more flexible financing strategies.
