A TOTAL of $12m in equity and debt financing was secured by technology solutions firms in the country during the past year, a new report has affirmed.

The latest Partech Africa Tech Venture Capital Report has indicated that Tanzania’s technology landscape is asserting its place on the continental stage, securing a substantial rise in equity and debt-based investments, while the "big four" markets—Kenya, South Africa, Egypt and Nigeria— still took the lion's share of capital investments.

Tanzania has emerged as a steady player in the "Rest of Africa" (RoA) group, attracting $7m in equity funding and an additional $5m in debt financing, signalling a diversifying financial toolkit for local entrepreneurs.

One of the most significant trends highlighted in the report is the structural shift toward debt financing across the continent, reaching a record $1.6bn in 2025, a 63 percent increase year-on-year, it said.

The Partech Africa team, in its foreword, noted the importance of this shift for maturing markets, as more African startups are now reaching the scaling phase and building healthier, more resilient businesses. “This is a step forward in ecosystem maturity," the report underlined.

The rise of debt financing reflects a new level of operational stability as debt made up nearly half of total capital raised by African tech companies, reflecting the growing number of startups that have reached the level of operational maturity, cash flow visibility and governance required to access non-dilutive capital, they explained.

While global investors were preoccupied with artificial Intelligence, African tech initiatives followed a more grounded path, as investments accelerated in sectors critical to the local economy such as enterprise software, e-commerce, Cleantech and mobility, it stated.

African tech is charting its own distinct course, of steady digitization of African economies through practical, scalable business models and companies building infrastructure, productivity tools and essential services, the Partech experts observed.

In terms of equity, investors are becoming more disciplined, focusing on larger ticket sizes for proven models rather than a high volume of speculative deals, they affirmed, noting that despite the positive momentum, challenges remain for emerging hubs like Tanzania.

Funding remains highly concentrated in the top four markets, which captured 72 percent of total capital.

The Partech analysis warns of potential hurdles for the next generation of founders: "We see persistent pressure at the pre-seed and seed stages, raising questions about future pipeline formation…, the path to liquidity, for founders and investors alike, is an open and essential question to be addressed," they stated.

For Tanzania, 2025 was a year of cautious and more sustainable recovery, it said, elaborating that with 27 African countries now attracting tech capital, expansion of the geographic footprint suggests that the ‘Tanzanian silicon savannah’ is no longer just a dream, but a documented reality.

African tech startups raised $4.1bn last year, a 25 percent increase year on year, marking the ecosystem’s strongest year since 2022, as equity funding reached $2.4bn (+8 percent YoY) across 462 deals, while debt funding hit a record $1.6bn (+63 percent YoY), confirming debt’s growing role in African startup financing.

Deal activity grew to 570 transactions (+7 percent YoY), reflecting renewed momentum after two years of contraction, the report added.