At GITEX Nigeria 2025—taking place across Abuja and Lagos in early September—venture capitalists around the continent delivered a sobering message to founders: the flashy era of growth-at-all-costs is over. Over the past few years, tech across Africa enjoyed unprecedented investment amounts and bold expansion plans. Between 2021 and 2025, however, capital has dried up, inflation and currency devaluation have taken a toll, and investors now insist that businesses prove they can stand on their own strengths. Founders are no longer just judged on traction, but on the durability of their business fundamentals.
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From Hype to Health at GITEX: Liquidity, Blended Capital, and Discipline
One of the most prominent themes from a high-profile fireside chat—aptly titled “Venture in 2025 – Liquidity scarcity, thesis realignment, and the rise of operator-led funds”—was how costlier capital has become, and how VCs are responding. Investors are leaning into blended capital structures—that is, combining venture funds with catalytic finance, such as co-investments from development finance institutions (DFIs) and foundations. This helps to de-risk investments in markets prone to economic shocks like inflation and frequent recessions.
Brian Waswani Odhiambo of Novastar Ventures explained that with funding retreating from the US and Europe, they sought capital from Japan—raising over US$50 million—to keep their fund strategy alive. He also pointed out that foreign pullback has created space for more grounded, local investing that offers more realistic valuations and terms.
The lesson emerging for founders is two-fold: yes, funding is harder to find—but the capital available today may come with more local understanding and strategic patience.
Unit Economics and Real Value-Add
Another unmistakable trend: metrics that matter have shifted. Gone are the days when growth at all costs trumped everything else. Nigerian and African VCs now demand razor-sharp unit economics, profit pathways, and financial discipline from day one. As Odhiambo put it, “It’s not growth at all costs—it’s unit economics at all costs.”
On the investor side, value after investment matters too. The days when investors offered grand promises without showing up are ending. More founders now ask: aside from writing a cheque, what do you bring to the table? Many funds that once dazzled with slides are being pressed to stay active—showing up on boards, guiding strategy, and sticking with crises.
No Soft Ladies, No Free Money: Hard Truths for Founders
At the end of the day, the conversation boiled down to candid advice for startup founders in Africa: know why you’re here, and don’t let outside influences derail you. Olajide reminded founders that while it’s smart to be open-minded, it’s even smarter to stay rooted in your business’s purpose and core economics.
Odhiambo offered a blunt warning: being a founder in Africa today is risky. Venture capital benefits only a small slice of entrepreneurs—maybe 1%. It’s not free money, and it comes with strings attached—discipline, accountability, and delivery expectations.
Key Kakeaway at GITEX 2025
GITEX Nigeria 2025 has drawn a clear line under a vaporous past and ushered in a grounded future for African venture. The real wants from Africa’s VCs today are clear:
- Capital with resilience—blended structures, de-risked funding, local sensibilities.
- Healthy unit economics over promotional hype.
- Operators, not just financiers—investors who build alongside founders.
- Clarity, discipline, and a refusal to overpromise.
The message at Landmark Centre in Lagos, and echoed in Abuja, is that this phase of the African tech journey will be defined not by dazzling growth curves, but by sober strategy, accountability, and a focus on what truly scales. Founders who embrace that will not just survive—they may even thrive.
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