African startups focused on artificial intelligence secured $1.25 billion in funding between January 2019 and the first quarter of 2025.
This is according to a report published on September 1, 2025, by Heirs Technologies, a Nigerian company dedicated to driving Africa’s digital transformation.
Unsurprisingly, the so-called “Big Four”—South Africa, Nigeria, Kenya, and Egypt—dominate the sector. They benefit from favorable public policies, quality digital infrastructure, a large pool of technical talent, and structured university research networks.
At the top, South Africa captured $495.5 million, thanks to young companies deploying AI in areas such as energy optimization, data analysis, and healthcare infrastructure.
Next came Nigeria ($226.1 million), Kenya ($197.1 million), and Egypt ($161.1 million).
Overall, these four tech ecosystems absorbed more than 86% of the funds raised ($1.08 billion). AI startups are developing applications in highly diverse sectors, including healthcare, logistics, finance, agriculture, and energy.
The report also highlights that the biggest African AI success story comes from Tunisia. In January 2023, InstaDeep was acquired by the German biotech firm BioNTech for over $550 million, the largest acquisition in the history of the continent.
Founded in 2014 by Karim Beguir and Zohra Slim, the startup stood out for its expertise in predicting Covid-19 variants and detection of their dangerous mutations.
Today, the company supports major projects such as supply chain optimization, drug development, and rail traffic optimization.
Headquartered in London, with offices in Africa and Europe, InstaDeep has expanded its AI Academy in Tunisia and announced the opening of an R&D center in Tunis in late 2025.
The report also recalled that the African AI market is estimated at $4.5 billion in 2025, representing just 1.8% of the global market.
However, it is expected to grow at an annual average of 30% over the next decade.
Despite this rapid growth, challenges remain: a lack of specialized talent, fewer than 20 advanced research labs across the continent, weak AI regulatory frameworks, and limited cooperation between governments and private players.
The African Union is currently working on a harmonized AI strategy to strengthen cooperation, governance, and common regulations.
