Africa, in the last decade, has emerged as one of the fastest-growing tech markets, given its rapid tech and mobile adoption, underpinned by a youth population.
- Africa has become a rapidly growing hub for technology, driven by high mobile adoption and a youthful population.
- Significant investments exceeding $180 billion have been made by advanced economies, including Japan and Gulf states, into Africa’s tech sector.
- Japanese organizations and funds, along with institutions like JICA, have played a crucial role in reshaping Africa’s tech finance landscape.
- 2025 witnessed a 33% year-on-year rise in tech funding within Africa, indicating a robust recovery trend.
As a result, numerous advanced economies have committed substantial financial resources to tech investments within the region.
Japan and the Gulf states are a few of these external investors, having poured a substantial $180 billion in tech funding across Africa.
Briter Intelligence’s comprehensive 2025 analysis of Africa’s venture landscape depicts a maturing industry that is no longer dependent on the boom-bust cycles of European and American venture capital.
In 2025, African tech startups saw their total tech funding rise 33% year-on-year, marking a strong rebound following a 35% decline in 2023 and a further 25% drop in 2024.
Across the continent, 32 enterprises raised $100,000 or more, with 16 firms receiving $1 million or more.
These figures were achieved despite a dramatic dip in Western financing.
While North America (primarily the U.S.) and Europe (notably the UK and France) still have the highest number of headquartered funders, their involvement has decreased.
This decline reflects broader trends of global risk aversion, elevated interest rates, and the market correction that began after 2022.
Last year, Africa’s tech landscape was transformed by prospective, diverse investment from Asia and the Middle East, as well as fundamental backing from Development Finance Institutions (DFIs) and an expanding local African base.
With over 60 direct funders and more than 190 investments in approximately 30 sectors, Japan has quietly built one of the largest footprints in Africa’s changing tech ecosystem.
As seen on BusinessDay, Japanese organizations such as JICA, JBIC, JETRO, blue-chip corporations, including Mitsubishi, Mitsui, Sumitomo, Toyota Tsusho, Sony, big banks like MUFG, SMBC, SoftBank Vision Fund, and specialized venture capital firms comprising Samurai Incubate, Kepple Africa Ventures, UTEC, Global Brain, are now a part of Africa’s diverse funding pool.
“After years of learning, Japanese investors are now engaging more deliberately with both startups and funds. What is particularly exciting is the mix of public and private capital coming from Japan, bringing not only funding but also alternative financing structures, supply chain support, and pathways into new markets,” said Riki Yamauchi, director at Novastar Ventures.
Japan’s transition from aid to context-sensitive venture capital is in line with larger Asia-Africa corridors, strengthening strategic relationships that go beyond one-time transactions.
