African venture-backed exits hit record high in 2025 as local capital takes centre stage

Context The African Private Capital Association (AVCA) announced that venture-backed exits peaked in 2025, signalling a shift toward local capital as investors rethink funding models across the continent. At the opening of its Venture Capital Summit in Nairobi, AVCA chief executive Abi Mustapha-Maduakor said, “The centre of gravity is moving toward local capital, local expertise, and local conviction.” The summit, part of AVCA’s 22nd Annual Conference from April 27 to 30, brought together founders, investors, corporate venture arms, foundations, and policymakers to discuss capital flows and business growth.

Key Facts Annual venture investment in Africa grew from about $400 million a decade ago to roughly $4 billion in 2025, a tenfold increase that has expanded the pool of available capital for startups. This growth has been mirrored in public markets: shares of Naspers (NPN.JSE), a major backer of African internet firms, rose 2% to ZAR 3,450 after the summit, lifting its market cap to approximately ZAR 1.4 trillion. Meanwhile, Jumia (JMIA.N) reported a strategic sale of its logistics unit, pushing its share price up 5% to $12.40 and its market cap to about $1.1 billion. AVCA noted that exits are increasingly structured as mergers and acquisitions or strategic sales, reflecting limited traditional IPO routes.

What It Means The rise in local capital means that African investors are providing not only funding but also market expertise and conviction, which helps align investor expectations with startup realities. Alternative exit routes such as M&A allow founders to realize value while keeping businesses operational, addressing the liquidity challenge highlighted at the summit. Institutional players like pension funds are being urged to allocate more to venture assets; the National Social Security Fund warned that missing this shift could pose an existential threat to long‑term returns.

Watch for expanding private‑credit strategies and greater participation from local pension funds, which could further deepen the continent’s venture ecosystem and shape the next wave of exits.