Grace Ashiru
African startups attracted $183 million in funding in October 2026, marking a 58% decline from the $435 million recorded during the same month last year, as investment activity across the continent continued to face challenges.
The latest figures, published by Africa: The Big Deal, a platform that tracks startup investments across Africa, revealed that 34 startups secured funding of at least $100,000 during the month.
The total represented a 24% decrease from the $241 million raised in September and was 29% below the average monthly investment of $259 million recorded over the preceding 12 months.
The report also showed a decline in the number of businesses attracting capital, with October’s 34 funded startups falling below the monthly average of 43 recorded over the past year.
Nigeria maintained its position as the leading destination for startup funding in October, attracting $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 $40 million each, while Egypt secured $19 million and Senegal attracted $13 million.
However, 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.
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 $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 $40 million in equity investment from Admaius Capital Partners, while Tanzania-based agricultural technology company East Africa Foods raised $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 $17 million bond issuance by Egyptian fintech company ValU and $13 million in financing for Senegal-based Afreenergy Solar.
In Nigeria, Bisedge secured an $11 million loan from Finnfund, while Beacon Power Services obtained a $10 million loan from the European Bank for Reconstruction and Development.
Climate technology emerged as a major investment destination, accounting for 55% of the total funding recorded in October.
Equity financing contributed approximately $110 million, representing 60% of total investments, while debt financing accounted for $71 million, or 39%.
Grants made up the remaining $2 million.
The figures suggest that investors continued to support businesses addressing energy, agriculture and climate-related challenges despite the wider slowdown in startup financing.
According to the October funding analysis published by Africa: The Big Deal, African startups raised approximately $2.4 billion between January and October 2026, compared with $2.7 billion during the corresponding period in 2025.
This represents a 12% year-on-year decline.
While equity investment increased by 5% to approximately $1.6 billion, debt financing dropped by 33% to $740 million.
The number of startups securing investments of at least $100,000 also fell by 22%, from 438 during the first ten months of 2025 to 343 in 2026.
Meanwhile, the number of identified active investors declined by 16%, from at least 442 to 370.
With two months remaining in the year, the funding data highlights the challenges facing African startups seeking external capital.
Nevertheless, the growing contribution of markets such as Morocco and Tanzania demonstrates that significant investment opportunities continue to emerge beyond the continent’s established technology hubs.
