How investors are structuring risk in Africa’s next funding cycle

In 2021, African startups raised capital largely through equity, and fintech absorbed a disproportionate share of it. Venture investors were underwriting scale first and asking hard questions later. By 2025, that posture had changed. More than $1 billion flowed through non-equity instruments last year, with debt financing alone reaching about $1.6 billion, the highest level recorded on the continent. At the same time, cleantech surpassed fintech in total capital raised, reflecting a growing preference for businesses tied to energy, logistics and other essential infrastructure.

That change points to something deeper than sector rotation. Investors are still deploying capital, but they are doing so with greater attention to structure, currency exposure, and cash flow durability.

Kanessa Muluneh, founder of the investment firm Nyle, operates within this adjusted landscape. Her approach to deploying capital offers a concrete example of how investors are navigating this cycle.

Pricing the convertibility risk

For an investor wiring capital into Nigeria or Egypt, the central risk is often not the startup’s burn rate but convertibility. While the legal framework guarantees the right to repatriate profits and capital, foreign exchange liquidity has at times made that process uneven. Aviation and manufacturing firms in Nigeria have reported sizable backlogs of unrepatriated earnings in recent years, underscoring how quickly access to dollars can tighten.

Last updated: April 24, 2026