African startups raised $183 million in October 2026, a 58 per cent decline from the $435 million secured in the corresponding period of 2025, as investment activity across the continent continued to weaken.
The funding was raised by 34 startups that announced deals worth at least $100,000, excluding exits, according to data from Africa: The Big Deal, which tracks investment activity across the continent.
October’s performance also represented a 24 per cent drop from the $241 million raised in September and was 29 per cent below the average monthly funding of $259 million recorded over the preceding 12 months.
The number of startups attracting investment also fell below the recent average. Only 34 ventures announced qualifying funding deals in October, compared with a monthly average of 43 over the past year.
Nigeria emerged as Africa’s largest startup funding destination in October, attracting $42 million across nine companies, with much of the capital coming through debt financing in the energy and mobility sectors.
Morocco and Tanzania followed with $40 million each, while Egypt attracted $19 million and Senegal secured $13 million.
Notably, startups in Africa’s Big Four markets, Nigeria, Egypt, Kenya and South Africa, accounted for 46 per cent of October’s total funding, their lowest monthly share since November 2022. However, these markets remained dominant in deal volume, accounting for 26 of the 34 startups that raised at least $100,000.
The two largest funding transactions during the month came from outside the traditional Big Four markets.
Moroccan healthcare startup ABA Life raised $40 million from Admaius Capital Partners, while Tanzanian agritech company East Africa Foods secured a $40 million Series B investment from investors including InfraCo Africa, Oikocredit and FMO.
Other significant transactions included a $17 million bond issuance by Egyptian fintech company ValU, $13 million raised by Senegalese renewable energy company Afreenergy Solar, an $11 million loan from Finnfund to Bisedge, and a $10 million loan from the European Bank for Reconstruction and Development to Nigerian energy technology company Beacon Power Services.
Climate technology companies accounted for 55 per cent of the total funding raised during the month, highlighting the growing importance of energy transition and climate-related businesses in Africa’s investment landscape.
Equity remained the dominant funding instrument in October, accounting for $110 million, or 60 per cent of the total. Debt financing contributed $71 million, representing 39 per cent, while grants accounted for approximately $2 million.
The month also recorded four startup exits, including the initial public offering of Egyptian fintech company MNT-Halan on the Egyptian Exchange. The listing valued the company at a market capitalisation of $1.4 billion at the time of the report.
Other transactions included the acquisition of Egypt’s PeacePay by HealthPay, the completion of GiG Software’s acquisition of 888Africa in Mozambique, and the sale of South African accommodation platform LekkeSlaap to local investors.
The four transactions brought the total number of recorded exits in 2026 to 38, compared with 42 over the corresponding period of 2025.
