Egypt emerged as Africa’s top destination for startup funding in the first half (H1) of 2026, after start-ups across the continent raised close to $1.4 billion, pretty much on par with H1 2025.
The North African country, attracted a total of $327 million, followed by Nigeria with $254 million, Kenya with $126 million, and South Africa with $83 million.
According to report by Africa: The Big Deal, Egypt captured 27% of all African startup funding during the first half of the year, its highest share since tracking began, while Nigeria surpassed the $250 million mark for the first time since 2022, continuing a remarkably stable funding trajectory dating back to the second half of 2022.
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In contrast, Kenya recorded its weakest first-half funding performance since early 2021 following a strong second half of 2025.
Electric mobility startup Spiro, single-handedly raised as much as all Egyptian ventures ($270m equity + $57m debt), given their heavy operations in Kenya, which puts Kenya’s decline in a perspective a bit.
On the other hand, South Africa, which led the continent a year earlier, attracted less than $100 million during the period.
Collectively, the “Big Four” startup ecosystems, Egypt, Nigeria, Kenya, and South Africa, accounted for 58% of all funding raised across the continent during the period.
Excluding debt financing and focusing solely on equity investments, Nigeria ranked first, securing $214 million, ahead of Egypt’s $183 million, while South Africa and Kenya attracted $66 millionand $46 million, respectively.
The milestone underscores Nigeria’s continued appeal to venture capital investors despite macroeconomic challenges, currency volatility, and regulatory uncertainty.
The country remains home to some of Africa’s most mature startup ecosystems, particularly in fintech, logistics, e-commerce, healthtech, and enterprise software, supported by a large consumer market, increasing digital adoption, and a deep pipeline of entrepreneurial talent.
Nigeria’s first-place ranking in equity funding also highlights the resilience of its startup ecosystem. Notably, funding trends over recent periods show that both Egypt and Nigeria have maintained relatively consistent investment levels.
By the number of startups raising at least $100,000 (excluding grants), Nigeria reclaimed the top position after a subdued second half of 2025.
Within the Big Four, 110 out of 190 startups that raised at least $100,000 were based in these four markets, representing 58% of all qualifying deals. Nigeria led comfortably by deal count, while Egypt and Kenya recorded nearly identical numbers, with South Africa trailing behind.
Outside the Big Four, Tanzania, Côte d’Ivoire, and Morocco each attracted more than $25 million in startup funding during the first half of the year, reflecting growing investor interest in emerging African ecosystems.
Morocco also joined Tanzania and Ghana among the startup ecosystems that recorded at least 10 ventures raising $100,000 or more, despite Ghana ranking only 11th by total funding raised.
Meanwhile, declines across the other major ecosystems, both on a half-year and year-over-year basis, reinforce concerns about the growing concentration of capital in larger funding rounds and the persistent shortage of early-stage investment across Africa’s startup landscape.
Outlook
Looking ahead, Africa’s startup funding landscape is expected to remain selective, with investors continuing to prioritize companies that demonstrate clear revenue growth, strong unit economics, and a credible path to profitability.
While total funding has stabilized compared with the first half of 2025, capital is still concentrated in fewer, larger deals, making fundraising more challenging for early-stage startups.
Overall, the second half of 2026 will be closely watched to determine whether Africa’s venture capital recovery broadens beyond large funding rounds and extends to early-stage startups, which remain critical to sustaining long-term innovation and ecosystem growth.