Economy
Private Debt Booms in Africa’s Startup Ecosystem in 2025—Report
By Adedapo Adesanya
Debt has emerged as a fast-growing asset class for the startup funding landscape in Africa, according to a new report by the African Private Capital Association (AVCA).
The 2025 Private Capital Activity in Africa report showed that Africa emerged as the only global region to record growth in private capital deal volume in 2025, underscoring the continent’s resilience amid a challenging global investment climate.
For startups, raising funds signals validation of their business model, market potential, and growth trajectory, while also providing the financial runway needed to scale operations, invest in innovation, and compete effectively. This can be done via a number of means, including bootstrapping, venture capital, private equity, debt financing, crowdfunding, accelerators, grants, corporate investments, initial public offerings (IPOs), and revenue-based financing, among others.
The data showed that private debt emerged as a fast-growing asset class, with deal volumes surging by 57 per cent year-on-year.
The growth was driven largely by the rising use of venture debt, positioning private debt alongside private equity and venture capital as a key financing channel in Africa.
The report put total investment at $5.1 billion, reflecting a slight dip in value but sustained investor appetite across the continent. The data showed that deal activity rose by 8 per cent year-on-year to 530 transactions, even as global deal volumes declined by 7 per cent.
IPOs also saw modest growth, with four listings completed during the year.
Domestic investors played a critical role in driving liquidity, accounting for 68 per cent of private capital acquisitions.
International investors made up the remaining 32 per cent, led by Asian strategic buyers seeking to expand their footprint in African markets.
The report highlighted a shift in strategy among fund managers, who increasingly focused on smaller mid-market deals as global financial conditions tightened.
Transactions valued between $50 million and $99 million doubled during the year, signalling a move away from larger, capital-intensive investments.
Sectoral activity remained dominated by financial services, particularly fintech, which accounted for 82 per cent of transactions within the sector.
The information sector ranked as the second most active, supporting investments across finance, healthcare, retail and logistics.
Regionally, Southern Africa maintained its position as the most active investment hub, while East and North Africa recorded strong performances, buoyed by growth in energy and information technology investments.
Africa’s exit market also showed significant improvement, with 81 exits recorded in 2025, representing a 27 per cent increase from the previous year and the second-highest level on record.
This contrasted sharply with a 15 per cent decline in global exit activity over the same period.
Trade buyers remained the dominant exit route, accounting for 38 per cent of transactions, while sponsor-to-sponsor deals reached a record 26 per cent, reflecting increased depth in the secondary market.
Despite the strong deal and exit performance, fundraising declined by 34 per cent year-on-year to $2.7 billion, mirroring global liquidity pressures.
Development finance institutions remained central to the ecosystem, contributing 64 per cent of total commitments.
However, domestic capital continued to deepen, with African institutional investors accounting for 21 per cent of commitments.
Sovereign wealth funds and pension funds led this trend, reflecting a growing shift towards locally sourced capital.
Commenting on the findings, AVCA chief executive, Mrs Abi Mustapha-Maduakor, said the data reflects a continent increasingly decoupling from global investment headwinds.
“This year’s report tells a clear story: Africa is decoupling from the global slowdown. Stronger exit performance, deeper participation from domestic institutional capital, and sustained commitments from development finance institutions all point to a maturing ecosystem,” she said.
She added that the momentum is expected to build further as investors increase exposure to sectors driving Africa’s next phase of economic transformation.
By Dipo Olowookere
The key performance indices of the Nigerian Exchange (NGX) Limited tumbled by 0.55 per cent as a result of sell-offs across the major sectors of the market.
The bourse witnessed weak investor sentiment and low activity level during the trading day ahead of a two-day Sallah break on Wednesday and Thursday.
Analysis of the data showed that investors embarked on profit-taking yesterday, as traders liquidated their shares for holiday spending.
The banking space went down by 1.83 per cent, the insurance counter decreased by 1.41 per cent, the consumer goods index shed 0.77 per cent, the energy sector crashed by 0.14 per cent, and the industrial goods sector closed flat with an insignificant contraction.
Consequently, the All-Share Index (ASI) dropped 1,386.18 points to settle at 249,738.84 points compared with the previous day’s 251,125.02 points, and the market capitalisation crumbled by N889 billion to N160.094 trillion from N160.983 trillion.
There were 18 price gainers and 39 price losers on Customs Street at the close of transactions, representing a negative market breadth index.
Dangote Sugar depreciated by 10.00 per cent to N78.30, Transcorp Power lost 9.97 per cent to trade at N245.50, The Initiates slipped by 9.85 per cent to N27.45, Abbey Mortgage Bank dipped by 9.49 per cent to N6.20, and Fidelity Bank gave up 9.05 per cent to close at N21.60.
On the flip side, Austin Laz and McNichols gained 10.00 per cent each to sell for N4.40 and N7.92, respectively. International Energy Insurance chalked up 9.89 per cent to trade at N4.11, Learn Africa improved by 9.44 per cent to N12.75, and Haldane McCall jumped 8.06 per cent to N3.89.
The busiest stock for the day was Access Holdings with 80.6 million units worth N2.0 billion. Zenith Bank traded 33.8 million units valued at N4.5 billion, Mutual Benefits transacted 31.8 million units for N138.9 million, Neimeth exchanged 22.3 million units worth N233.0 million, and Sterling Holdings sold 22.2 million units valued at N172.4 million.
In all, market participants bought and sold 564.1 million units for N27.2 billion in 65,666 deals versus the 629.4 million units valued at N40.9 billion executed in 82,434 deals a day earlier. This showed that the trading volume, value, and number of deals went down by 10.38 per cent, 33.50 per cent, and 20.34 per cent, respectively.
By Adedapo Adesanya
Brent crude futures climbed 3.6 per cent or $3.44 to $99.58 per barrel on Tuesday after the US military carried out strikes in Iran, creating a fresh setback to hopes of a resolution, though the US West Texas Intermediate (WTI) crude fell by $2.71 or 2.8 per cent to $93.89 per barrel.
The US and Iran had signalled that they would reach an agreement to end the three-month war that would also reopen shipping through the crucial Strait of Hormuz. However, US forces struck Iranian-linked targets near the waterway while its government simultaneously pursued a ceasefire and shipping negotiations with Iran.
The US Central Command (CENTCOM) said the strikes were designed “to protect our troops from threats posed by Iranian forces.”
The strikes happened as Iran’s top negotiator and its foreign minister were in Doha for talks with Qatar’s prime minister aimed at reaching an agreement.
President Donald Trump had earlier confirmed that negotiations with Iran over an agreement to extend their ceasefire and reopen the strait were “proceeding nicely.”
The American President, in a Truth Social post on Monday, also urged Saudi Arabia, Qatar, and other countries to join the Abraham Accords and recognise Israel. In a later statement, he said Iran’s enriched uranium would either be handed over to the US or, preferably, destroyed in Iran.
Iran said the US had violated a ceasefire after it conducted what it called defensive strikes in southern Iran, while US Secretary of State Marco Rubio said negotiating a deal to halt the conflict could “take a few days.”
Both sides had previously signed a memorandum of understanding that could halt the war and restart shipping through the blockaded, while giving negotiators 60 days to negotiate more complex issues, including Iran’s nuclear programme.
Ship-tracking data showed three Liquefied Natural Gas (LNG) tankers passed through the Strait in recent days, bound for Pakistan, China and India, along with a supertanker carrying Iraqi crude to China that had been stranded for nearly three months.
Traders are trying to play the market on hopes of an agreement and largely ignoring the global energy crunch, with most supply from the Middle East still trapped behind the Strait of Hormuz.
By Adedapo Adesanya
The National Insurance Commission (NAICOM) has formally issued an operational licence to an insurance technology (insurtech) company, CBI Partnering Insurtech Limited.
It was the first issued by the regulator in Nigeria, and it is aimed at opening up the sub-sector of the underwriting industry to boost innovation and services.
This development underscores NAICOM’s regulatory leadership in fostering innovation within a structured and consumer-focused insurance ecosystem.
The licence was presented during a formal handover ceremony, where the commission reiterated its commitment to advancing innovation, regulatory reform, and policyholder protection across the insurance sector.
In his remarks, the Deputy Commissioner for Insurance, Finance and Administration, Mr Ekerete Ola Gam-Ikon, highlighted the agency’s ongoing efforts to align Nigeria’s insurance industry with global best practices.
He referenced the recent enactment of the Nigerian Insurance Industry Reform Act (NIIRA) 2025, alongside the Commission’s pioneering insurtech guidelines, as some of the key pillars driving this transformation.
He noted that fostering innovation within a robust and well-governed regulatory framework remains a core strategic priority for the commission.
Mr Ekerete further emphasised that the licence is granted subject to strict compliance with regulatory and ethical standards, reinforcing NAICOM’s dual mandate of enabling innovation while safeguarding policyholders’ interests.
He also pointed to the growing international recognition of Nigeria’s regulatory approach, particularly in leveraging technology to accelerate insurance sector development.
While formally presenting the licence, he stated, “This milestone reflects the commission’s commitment to responsibly nurturing innovation across the insurance value chain.
“We congratulate CBI Partnering Insurtech Ltd and expect full compliance with all applicable regulations. This licence carries an obligation to uphold the highest standards of governance and ethical conduct.
“NAICOM remains committed to supporting the growth of insurtech while protecting the interests of Nigerians.”
In response, the Managing Director of CBI, Mr Suleiman Olalekan Ajani, expressed appreciation to NAICOM for its guidance and rigorous licensing process, stating:
“We are honoured to receive this licence from NAICOM. The Commission’s robust regulatory framework provides the foundation for us to scale strategic partnerships and deliver technology-driven insurance solutions that prioritise consumer trust, transparency, and protection.”
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