Tech drives Africa’s private capital boom as Q3 deals surge to Sh646 billion
Within IT, application software (7 per cent of all transactions) and consumer digital services (6 per cent) were the dominant sub-sectors, together representing two-thirds of all IT deals.
Africa’s innovation momentum accelerated in the third quarter of 2025 as new disclosures show Information Technology (IT) overtook all other sectors to claim the largest share of private capital transactions.
According to the Stears’ Private Capital in Africa Activity Report covering the three months to September, IT led the continent’s deal flow for the first time.
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The sector accounted for 21 per cent of transactions, surpassing the long-dominant Consumer Goods and Services category.
Within IT, application software (7 per cent of all transactions) and consumer digital services (6 per cent) were the dominant sub-sectors, together representing two-thirds of all IT deals.
The Financial Services remained a steady pillar of capital deployment, taking second place with 20 per cent of transactions. The Energy and Utilities sector followed in third place with 13 per cent of deal activity.
Notably, the Consumer Goods and Services category ranked fifth, where education emerged as the leading focus area, accounting for 32 per cent of all deals.
“Investors increasingly targeted education assets serving Africa’s young and expanding population,” the report reads.
Agriculture also featured prominently, with crop production maintaining its top position and accounting for roughly a third of sector transactions.
Cold storage recorded the second-highest number of agricultural deals, signalling rising investments in food security, value-chain resilience and logistics infrastructure.
Regionally, Southern Africa remained the most concentrated market, with South Africa responsible for an overwhelming 87 per cent of the total private capital transactions.
West Africa follows in second, led strongly by Nigeria, which accounted for 70 per cent of regional transactions in the review period.
East Africa ranks third, with Kenya reinforcing its position as the region’s investment hub.
The country accounted for 65 per cent of transactions, roughly double the combined shares of Uganda (33 per cent) and Tanzania (27 per cent).
Northern and Central Africa rounded out the continental distribution, taking fourth and fifth place, respectively.
Generally, the report highlights an increase in private capital activity in Africa.
It says the transactions increased during the quarter, with 177 recorded transactions, up from 147 in Q2 2025.
In value terms, disclosed transaction value rose to $5.0 billion (Sh646.4 billion), a 60 per cent increase from the $3.0 billion (Sh387.8 billion) recorded in the previous quarter, even as the disclosure rate fell to 51 per cent, below the typical quarterly average.
Disclosures in Q2 averaged 63 per cent.
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