African startups attracted USD 183 million in funding in October 2026, marking a 58% decline from the USD 435 million recorded during the same month last year, as investment activity across the continent continued to face challenges.
The latest figures revealed that 34 startups secured funding of at least USD 100,000 during the month. This total represented a 24% decrease from the USD 241 million raised in September and was 29% below the average monthly investment of USD 259 million recorded over the preceding 12 months.
Nigeria Leads Startup Funding in October
Nigeria maintained its position as the leading destination for startup funding in October, attracting USD 42 million across nine companies. A significant proportion of the country’s investment came through debt financing, particularly in the energy and mobility industries. Morocco and Tanzania followed with USD 40 million each, while Egypt secured USD 19 million and Senegal attracted USD 13 million.
The geographical distribution of investments revealed an important development in Africa’s technology ecosystem. Startups operating outside the continent’s traditional Big Four markets—Nigeria, Kenya, Egypt, and South Africa—accounted for 54% of the funding raised during the month. This left the Big Four with 46% of total investment, their lowest monthly share since November 2022.
African Startups: Key figures on Funding
- USD 183 million total funding in October 2026
- 34 startups secured funding of at least USD 100,000
- USD 2.4 billion raised between January and October 2026
Emerging Trends in Startup Investments
Despite receiving a smaller proportion of funding, the four countries still accounted for 26 of the 34 startups that announced investment rounds of at least USD 100,000. Two of October’s largest funding transactions involved companies operating outside Africa’s established startup investment centres. Moroccan healthcare company ABA Life secured USD 40 million in equity investment from Admaius Capital Partners, while Tanzania-based agricultural technology company East Africa Foods raised USD 40 million in a Series B funding round.
Investors participating in East Africa Foods’ financing included InfraCo Africa, Oikocredit, and FMO. Other notable transactions included a USD 17 million bond issuance by Egyptian fintech company ValU and USD 13 million in financing for Senegal-based Afreenergy Solar.
Future Outlook for African Startups
- Continued focus on climate technology investments
- Potential for growth in emerging markets like Morocco and Tanzania
- Challenges in securing external capital remain
Despite a decline in overall funding, significant investment opportunities continue to emerge across Africa’s startup landscape.
