African agtech funding drops nearly 20% in 2025 to under $170 million

Investment into African agtech fell sharply in 2025, with total funding down nearly 20% to under $170 million and the number of deals declining by around 10%, according to the State of Agtech Investment in Africa 2025, Briter and AgBase’s flagship report published via Business Insider Africa. The analysis covered more than 490 funded ventures and over 600 active funders between 2016 and 2025, and signals a continuing correction from the sector’s 2022 peak.

"For the first time, equity accounted for less than half of total agtech funding, falling from $328 million in 2022 to roughly $80 million in 2025," the report said, underscoring a marked shift in the composition of capital flowing to the sector.

That shift has been dramatic. Equity rounds all but evaporated relative to earlier years, while debt, hybrid instruments and grants moved to the forefront of financing. Mid-sized equity rounds — typically in the $1 million to $10 million band — have become rarer, representing only about 20% of total deals in 2025. At the same time, nearly 80% of rounds were sub-$1 million, a far higher share than in Africa’s broader startup ecosystem, and deals above $10 million increased only slightly.

Concentration, deal sizes and geography

Investment remained highly concentrated: just 11 companies captured more than half of all agtech funding in 2025. The report also highlights persistent gaps in the growth capital corridor, noting a dearth of mid-stage funding in the roughly $250,000 to $2 million range that many scaling startups depend on.

• Total agtech funding in 2025: under $170 million (down nearly 20%).
• Equity funding: roughly $80 million in 2025, down from $328 million in 2022.
• Sub-$1 million rounds: nearly 80% of deals.
• $1M–$10M rounds: about 20% of deals; deals above $10M rose slightly.
• Data set: 490+ funded ventures and 600+ active funders analysed.

Geographically, the centre of gravity is broadening. Kenya — long the dominant hub for agtech capital — saw its share fall from more than 50% in 2023 and 2024 to around a quarter of total funding in 2025, as investors diversified across Egypt, Nigeria, South Africa, Tunisia and Ghana.

Gender dynamics showed modest progress but continued imbalance: women were involved in approximately 7% of agtech deals, a higher rate than in fintech and healthtech, yet funding outcomes still favoured larger downstream models where women’s representation drops sharply.

The report frames the downturn as more than a short-term dip. It describes the pattern as "highlighting a structural reset rather than a temporary dip," suggesting that funders and founders will need to adjust strategies for a landscape where debt, hybrids and smaller early-stage cheques predominate and mid-stage capital remains scarce.