In SA the story was one of relative resilience. Total venture funding reached $459m in 2024. Though still below pre-2022 levels, SA avoided the sharp volatility seen in other markets. Much of this stability can be attributed to macroeconomic tailwinds. Inflation has moderated, energy availability has improved, and the peaceful conclusion of national elections has strengthened investor sentiment. TymeBank’s record-setting round further underscored the global appetite for bankable, scalable SA fintech.
In the rest of 2025 we expect the market to continue its slow, steady rebound. Globally, inflation is easing and interest rates are expected to trend downward. These shifts should unlock capital that has been sitting on the sidelines. However, unlike in 2021 investors are now more selective, strategic, and more focused on fundamentals.
Africa still awaits its AI boom, which was a key driver of venture capital flows globally in 2024. But the continent is undoubtedly ripe for a new wave of digital innovation. The core ingredients are in place: a young, entrepreneurial population; high rates of mobile penetration; and increasing demand for digital financial, health and enterprise services.
However, not all capital is created equal. Investors are increasingly seeking partners who offer not just funds but also strategic value and rigorous vetting. And challenges remain. Global capital markets are still recovering. Political and regulatory risks must be carefully managed. And founders will need to remain vigilant — extending runway, prioritising breakeven and being judicious in their fundraising strategies.
Yet the long-term fundamentals of African innovation remain undeniable. We are witnessing a generational rise in digital adoption, financial inclusion and youth-driven entrepreneurship. These bottom-up forces are reshaping markets and unlocking new opportunities for growth.
What we need now is patient capital and purpose-driven partnerships to sustain this momentum. The investors and institutions that understand Africa’s unique dynamics and are willing to invest in real businesses solving real problems, will be the ones who help shape, and benefit from, the continent’s next growth wave.
We remain deeply committed to supporting these entrepreneurs. By providing access to capital, markets and mentorship, we aim to help them navigate a complex environment while building the transformative companies of the future. The recovery may be measured, but the opportunity is immense.
• Collier is CEO of Endeavor SA.
