Africa’s private capital market saw a big surge in the second quarter of 2025, nearly doubling from the previous three months. 

A new report by Stears and the East Africa Venture Capital Association (EAVCA) shows that disclosed deal value hit $3.0 billion in Q2 2025, up from $1.6 billion in Q1 2025 and almost matching last year’s $3.7 billion. 

Here’s a closer look at what drove this growth and which sectors and regions saw the most activity.

Transaction Volume Rises

Private capital activity also picked up speed. There were 147 transactions in Q2 2025, compared with 125 deals in Q1 2025 and 137 in Q2 2024.

This steady rise in deal count shows that more investors and entrepreneurs are finding opportunities across the continent.

Mega Deals Power Growth

The main reason for the jump in total deal value was a rebound in “mega deals”,those larger than $75 million. These big transactions made up 11 percent of all deals in Q2 2025, more than double the 5 percent share in Q1 2025.

Meanwhile, smaller deals (under $25 million) fell from 54 percent of transactions to 49 percent, and mid‑sized deals ($25 million – $75 million) slipped from 25 percent to 16 percent.

Debt Financing Remains Key

Debt continued to dominate how projects and companies raised money. Debt financing accounted for a large share of deals, especially in agriculture and energy. Together, these two sectors made up 40 percent of all debt‑based transactions.

In agriculture alone, 85 percent of deals used debt, reflecting farmers’ need for working capital. Energy projects also leaned heavily on loans because power plants and oil facilities require large upfront investment.

Top Sectors for Investment

Consumer Goods & Services led all sectors with 27 percent of total deals, overtaking Financial Services at 24 percent. Technology and Energy & Utilities followed with 18 percent and 14 percent of transactions, respectively.

Together, Consumer Goods & Services and Financial Services made up 52 percent of all deals,down slightly from 55 percent in Q1 2025 but well above the 41 percent share in Q4 2024.

In mergers and acquisitions, Financial Services stood out. Highlights included Access Bank’s $100 million purchase of National Bank of Kenya and Egypt’s first SPAC deal, when Catalyst Partners merged with the digital lender Qardy.

Regional Patterns Vary

Investment trends differed across Africa’s regions. Central Africa recorded the highest share of debt deals, with 64 percent of its transactions relying on loans,despite accounting for only 7 percent of the continent’s total deal flow.

That region alone contributed 13 percent of all debt financing on the continent. In East Africa, 46 percent of deals used debt, making up 40 percent of the total debt volume.

By contrast, West, North and Southern Africa saw equity financing remain more common, although Southern and West Africa also showed growing use of structured debt (project‑finance) at 15 percent and 13 percent of deals, respectively.