African startups raised $183 million in October 2026, with ventures outside the continent’s traditional investment hubs attracting more than half of the disclosed funding.
Data fromAfrica: The Big Dealshows that 34 startups secured at least $100,000 during the month, raising 24% less than September’s $241 million altogether.
The recent numbers for October also fell 29% below the previous 12-month monthly average of $259 million.
However, based on the geographical distribution of the funding, Egypt, Kenya, Nigeria and South Africa, collectively known as the Big Four, attracted just 46% of October’s total.
This is their lowest combined share since November 2022 and also differs sharply from 2025, when the four markets accounted for 82% of Africa’s total startup funding.
Morocco and Tanzania were responsible for much of the shift, with Healthcare company ABA Life securing $40 million from Admaius Capital Partners. Tanzanian agritech company East Africa Foods also raised $40 million in a Series B round.
East Africa Foods attracted investment from InfraCo Africa, Oikocredit and FMO, among other investors. Together, the two companies accounted for $80 million, representing almost 44% of October’s funding.
Nigeria still recorded the highest country total, with $42 million raised across nine startups. A large part of the money went to energy and mobility businesses through debt financing.
Egypt followed with $19 million, while Senegal recorded $13 million. Morocco and Tanzania each secured $40 million, putting both markets ahead of Egypt and Senegal.
The funding also showed how much African startups relied on different financing options during the month. Equity investments accounted for $110 million, or 60% of the total. Debt contributed $71 million, representing 39%, while grants accounted for approximately $2 million.
Two major equity rounds came from Morocco and Tanzania. However, several other sizeable transactions involved loans and debt instruments.
Egyptian fintech company ValU raised $17 million through a bond issuance. Senegal’s Afreenergy Solar secured $13 million, while Bisedge obtained an $11 million loan from Finnfund.
In Nigeria, Beacon Power Services received a $10 million loan from the European Bank for Reconstruction and Development (EBRD).
Climate technologycompanies also attracted a significant share of the money. The sector accounted for 55% of October’s total funding, sustaining its strong showing across the African startup market.
Briter’s research puts climate technology’s share of disclosed African venture funding at nearly 40% in 2025. The sector also overtook fintech as the continent’s largest funding category that year.
African startup funding still below 2025 levels
Despite October’s geographical spread, the funding figures reveal that African startups are still finding it difficult to match last year’s performance.
Between January and October 2026, startups raised $2.4 billion, compared with $2.7 billion during the same period in 2025. This represents a 12% decline.
On the difference between equity and debt financing, Equity funding increased by 5% year-on-year to $1.6 billion. Debt financing, however, dropped by 33%, falling from $1.1 billion to $740 million.
This follows a strong year for debt financing in 2025. Africa: The Big Deal reported that debt accounted for 37% of total startup funding that year, its highest proportion on record.
Partech’s 2025 Africa Tech Venture Capital Report also put debt financing at a record $1.6 billion, representing 41% of capital deployed.
The number of funded businesses has also declined. Only 343 startups raised at least $100,000 between January and October 2026. During the same period last year, 438 businesses reached that threshold, representing a 22% drop.
The number of active investors also fell, as Africa: The Big Deal identified more than 370 active investors this year, compared with over 442 in the corresponding period of 2025. That represents a decline of 16%.
The current figures come after African startup funding recovered in 2025. The continent raised $3.2 billion that year, recording a 40% increase after two years of contraction.
However, matching that annual total in 2026 will require a much stronger finish. Startups must announce another $814 million in November and December to equal last year’s figure.
For comparison, African startups raised $496 million across those two months in 2025. Reaching the same annual total would therefore require considerably more funding than last year’s closing months delivered.
Equity financing has a more achievable target. Another $338 million would take 2026 equity funding above the $1.9 billion recorded in 2025. This is still possible at the average monthly pace of the past year.
Four startup exits recorded in October
October also recorded four notable exits across Africa’s technology sector.
Egyptian fintech company MNT-Halan completed its initial public offering (IPO) on the Egyptian Exchange. Its market capitalisation stood at $1.4 billion at the time of reporting.
HealthPay also acquired PeacePay in Egypt, while GiG Software completed its acquisition of Mozambique-based 888Africa.
In South Africa, local investors acquired accommodation platform LekkeSlaap as its co-founders exited the business.
These transactions bring Africa’s recorded startup exits to 38 in 2026. The continent recorded 42 exits during the corresponding period in 2025.
Meanwhile, reports that OPay’s planned New York listing has been halted have added another development to the African fintech market. The circumstances surrounding the reported halt are a developing story.
Although October delivered a smaller funding total than previous months, Morocco and Tanzania’s performance offers a different picture of where investment is going.
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Tags:African startup funding, African startups, October 2026 startup funding, Morocco startup funding, Tanzania startup funding, Nigeria startup funding, African tech investment, climate tech funding, African venture capital
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