Africa’s startup investment landscape in the first half (H1) of 2026 remained highly concentrated, with fintech and logistics & transport emerging as the dominant sectors.
According to a report by Africa: The Big Deal, the two industries together accounted for 76% of the $1.36 billion raised by startups across the continent, excluding exits, highlighting investors’ continued preference for a handful of high-growth sectors.
Fintech retained its position as the continent’s leading investment destination, attracting $556 million, representing 41% of total funding. Logistics & Transport followed closely with $472 million, or 35% of all capital raised.
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Much of the sector’s strong performance was driven by electric vehicle company Spiro, whose $327 million fundraising round alone accounted for nearly 24% of all startup funding secured in Africa during the period and approximately 70% of all investment flowing into the Logistics & Transport sector.
Outside the two dominant industries, Agri & Food ranked third with $93 million (7%), followed by Waste Management with $60 million (4%), while Energy & Water secured $50 million (4%), completing the top five sectors by funding.
Despite these figures, sector-level funding trends remain difficult to interpret over the long term because overall investment volumes are often skewed by a handful of exceptionally large funding rounds.
Nevertheless, Logistics & Transport’s performance in H1 2026 marked a significant milestone, as the sector captured 35% of total funding, far exceeding its previous annual peak of 13% recorded in 2024.
In contrast, the Energy sector experienced a notable decline. Its 4% share of total funding represented a sharp drop compared with the 20% to 27% share it consistently achieved between 2023 and 2025, making it one of the weakest-performing sectors during the period.
The dominance of electric vehicle investments also boosted the broader climate technology ecosystem. Since much of the Logistics & Transport funding, led by Spiro, was directed towards EV-related businesses, alongside strong performances from sectors such as Waste Management, Climate Tech startups collectively attracted 39% of all funding raised in H1 2026.
This surpassed the sector’s 34% share in 2024 and matched its 38% performance in 2025, underscoring sustained investor confidence in climate-focused innovation.
However, when sectors were ranked by the number of startups that successfully raised funding rather than by total investment value, a more balanced ecosystem emerged.
Fintech still led with 48 funded startups, representing 25% of all funded ventures during the semester. The competition for second place was much closer, with HealthTech recording 29 funded startups, Logistics & Transport 27, and Agri & Food 26.
This broader distribution suggests that while capital remains concentrated in a few sectors and large funding rounds, entrepreneurial activity across Africa is more diverse than funding totals alone indicate. At the same time, it highlights the challenges startups in several industries face in securing larger investment tickets.
Climate Tech also demonstrated healthy participation when measured by startup activity. The sector accounted for 30% of all startups that raised funding during H1 2026.
Although this was lower than its 39% share of total capital raised, it remained broadly consistent with previous years, following 28% in 2024 and 29% in 2025.
The figures reinforce Climate Tech’s growing importance within Africa’s innovation ecosystem, both in terms of investment value and the number of ventures attracting investor interest.
Outlook
Looking ahead, Africa’s startup funding landscape is likely to remain shaped by a combination of large fundraising rounds and investor preference for sectors with proven scalability.
Fintech is expected to maintain its leadership position, driven by growing demand for digital financial services, embedded finance, cross-border payments, and financial inclusion solutions across the continent.
Overall, while funding remains concentrated among a handful of sectors and high-profile deals, Africa’s startup ecosystem continues to broaden.
If macroeconomic conditions improve and investor confidence strengthens, the second half of 2026 could see a more diversified flow of capital across industries, supporting a wider range of startups beyond the traditional fintech stronghold.