African startups raised a combined $183 million in October 2026, with Morocco and Tanzania emerging as major funding destinations, signalling a shift in investment activity beyond the continent’s traditional Big Four markets.
According to report by Africa: The Big Deal, 34 African startups secured investments of at least $100,000 during the month, excluding exits.
The total represents a 24% decline from the $241 million raised in September and is 29% below the average monthly funding of $259 million recorded over the preceding 12 months.
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The October performance also marked a 58% year-on-year decline from the $435 million raised in October 2025, when mobility startup Spiro and Nigerian fintech Moniepoint secured $100 million and $90 million, respectively.
Deal activity weakened as well, with the 34 funded startups falling below the 12-month monthly average of 43. Equity financing accounted for $110 million, representing 60% of total funding, while debt contributed $71 million, or 39%. Grants accounted for approximately $2 million.
The two largest funding transactions were equity investments secured by startups outside Africa’s traditional Big Four markets. Moroccan healthcare company ABA Life raised $40 million from Admaius Capital Partners, while Tanzanian agritech company East Africa Foods secured a $40 million Series B round from investors including InfraCo Africa, Oikocredit and FMO.
Debt financing also featured prominently, with Egyptian fintech company ValU issuing a $17 million bond, Senegal-based Afreenergy Solar securing $13 million, and Finnfund extending an $11 million loan to Nigerian company Bisedge.
Beacon Power Services, also based in Nigeria, received a $10 million loan from the European Bank for Reconstruction and Development (EBRD).
Climate technology companies accounted for 55% of the total funding raised during the month, highlighting the sector’s growing significance in Africa’s investment landscape.
Morocco and Tanzania Challenge the Big Four’s Funding Dominance
October recorded an unusual geographical distribution of startup funding, with companies headquartered in Nigeria, Egypt, Kenya and South Africa collectively attracting just 46% of the total capital raised. This was their lowest combined monthly share since November 2022.
Despite the decline in funding value, the Big Four maintained their dominance in deal volume, accounting for 26 of the 34 startups that raised at least $100,000.
Nigeria led the continent in funding, attracting $42 million across nine startups, largely through debt transactions in the energy and mobility sectors. Morocco and Tanzania followed with $40 million each, while Egypt secured $19 million and Senegal attracted $13 million.
The performance of Morocco and Tanzania highlights the growing capacity of emerging African startup ecosystems to attract significant investment beyond the continent’s established technology markets.
Four Startup Exits Recorded in October
Africa’s startup ecosystem also recorded four notable exits during October.
Egyptian fintech company MNT-Halan completed its initial public offering (IPO) on the Egyptian Exchange, reaching a market capitalisation of approximately $1.4 billion at the time of reporting.
Other transactions included HealthPay’s acquisition of Egyptian payments company PeacePay, the completion of GiG Software’s acquisition of Mozambique-based 888Africa, and the sale of South African accommodation platform LekkeSlaap to local investors.
Meanwhile, the unexpected last-minute suspension of OPay’s planned New York listing emerged as a developing story.
With these transactions, Africa’s startup ecosystem recorded 38 exits in 2026, compared with 42 exits over the corresponding period in 2025.
African Startup Funding Reaches $2.4 Billion in First Ten Months
Between January and October 2026, African startups raised approximately $2.4 billion, representing a 12% decline from the $2.7 billion recorded during the same period in 2025.
The funding gap widened following October’s relatively weak performance, particularly when compared with October 2025, which benefited from several substantial investment transactions.
However, equity financing continued to demonstrate resilience, increasing by 5% year-on-year to $1.6 billion. Debt financing moved in the opposite direction, declining 33% from $1.1 billion to $740 million.
The number of startups attracting at least $100,000 also fell significantly. A total of 343 startups secured funding during the first ten months of 2026, compared with 438 in the corresponding period of 2025, representing a 22% decline.
This marks the lowest January-to-October funding participation since tracking of deals worth at least $100,000 began in 2021.
Investor participation also weakened, with the number of identified active investors declining 16%, from more than 442 in 2025 to over 370 in 2026.
Can African Startups Match 2025’s Funding Performance?
With November and December remaining, African startups would need to raise an additional $814 million to match the $3.2 billion recorded throughout 2025.
Achieving that target would require significantly stronger funding activity, considering that startups raised a combined $496 million during the final two months of 2025.
However, the outlook for equity financing appears more encouraging.
African startups need approximately $338 million in additional equity investments to surpass the $1.9 billion recorded in 2025. This target remains achievable, representing less than two months of funding at the average monthly pace recorded over the preceding year.
Consequently, although Africa’s overall startup funding performance is unlikely to match 2025 levels, 2026 could still emerge as the strongest year for equity financing since 2022.