Venture capital flows to Africa soared last year, the latest sign the continent’s economies are being shaped by investment, not aid. VC funds ploughed around $4 billion into African economies in 2025, up around fourfold from 2020 levels, helping to mint several new unicorns. T
he surge points to investor appetite to tap into the huge, largely underserved market, but also the sudden shift in foreign finance flows to Africa: Since the start of US President Donald Trump’s second term, Washington has replaced aid programs with co-investment deals. Investors hope the moves will unlock more capital: “If local capital invests, foreign capital follows,” a South African asset manager told The Economist.