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State of African Tech in 2026: Funding, Trends and What's Next

6 min read

The 2025 and 2026 numbers on African tech funding, countries, sectors and exits, checked at the source, with what I expect for founders over the next year.

African tech in 2026 is raising bigger rounds for fewer startups. Africa: The Big Deal counted 311 startups raising US$100,000 or more from January to September 2026, down 18% on 2025, while deals of US$10 million or more took 83% of the money. Nigeria and Egypt lead so far this year, and Kenya has fallen back after a record 2025.

I co-founded Hackhouse, a builders' hub in Nairobi. This post sets out the picture from the main funding trackers, with every figure linked, followed by my own read of what comes next for founders. Treat that last part as opinion.

How did African tech funding end 2025?

The 2025 Partech Africa Tech VC Report counted US$4.1 billion raised by African tech startups in 2025, up 25%. Equity grew 8% to US$2.4 billion across 462 deals. Debt reached a record US$1.6 billion, 41% of all capital, up from 31% in 2024. Kenya ranked first with US$1.04 billion, helped by four of the year's nine megadeals.

Trackers count differently. Africa: The Big Deal, which tracks deals of US$100,000 or more, puts 2025 at US$3.2 billion. Use one tracker consistently when you compare years in a pitch.

What does African startup funding look like in 2026?

The first Q3 2026 report from Africa: The Big Deal shows a narrowing market:

  • 311 startups raised US$100,000 or more from January to September, against 381 in the same months of 2025.
  • Rounds between US$100,000 and US$1 million fell from 220 to 171, the steepest drop of any band.
  • 334+ named investors took part, down from 408+. Equity investors fell 26%.
  • Deals of US$10 million or more made up 83% of funding, up from 78% in 2025 and 69% in 2024.
  • Spiro (US$345 million) and Moove (US$250 million) together took 28% of all funding.
  • There were 34 exits, mostly acquisitions, against 38 a year earlier.

Which African countries lead in 2026?

According to the second Q3 2026 report, Nigeria raised US$635 million from January to September, 2.6 times its 2025 level, and led on deal count with 77 startups. Egypt raised US$445 million, up 10%. Kenya raised US$201 million, down 73%, and South Africa US$182 million, down 58%. The four together took 85% of country-specific funding. Tanzania, Cote d'Ivoire, Zambia, Morocco and Ghana led the rest.

Kenya's fall needs context. Its 2025 total leaned on large debt rounds and megadeals, which are lumpy from year to year. For an early-stage Kenyan founder, the drop in small rounds matters more than the headline.

Which sectors are growing in African tech?

  • Logistics and transport: US$780 million, 36% of funding and a record share. Spiro and Moove make up about three quarters of it, so without them the sector raised about US$185 million.
  • Fintech: US$760 million, 35% of funding, and still first by number of startups raising (80).
  • Energy: US$187 million, down 74% after a record 2025.
  • Healthcare: US$21 million across 35 ventures, down 88%.

The same report found that startups with a woman CEO raised 5.4% of funding, and about 2% without one large deal (Odyssey Energy Solutions).

What else is shaping African tech in 2026?

Mobile money keeps growing. The GSMA's 2026 mobile money report, covered by Connecting Africa, found US$1.4 trillion moved through mobile money in sub-Saharan Africa in 2025, 66% of the world total. Any product that touches payments can build on that.

Governments are writing AI plans. Kenya launched its National AI Strategy for 2025 to 2030 in March 2025, and Citizen Digital reported that it needs at least KES 152 billion to implement, half of it for digital infrastructure. Founders building AI products for local languages, credit or customer support should follow the regulation that comes with it.

Debt is now a normal part of the stack. Partech's 41% debt share shows that asset-heavy businesses such as electric mobility, solar and lending are funding growth with loans.

What should founders expect for the rest of 2026 and 2027?

This is my view from where I sit in Nairobi, so weigh it accordingly.

  1. Small rounds will stay hard to raise. The fall in US$100,000 to US$1 million deals and in repeat investors points that way. Plan to reach revenue on less money.
  2. Debt will keep growing for businesses with assets or receivables. If you finance phones, bikes, stock or solar kits, learn how lenders assess a loan book early.
  3. Fintech will keep the most deals, and other sectors will take more of the money. Logistics, mobility and energy rounds are larger and attract the big cheques.
  4. Exits will stay mostly acquisitions. Build something a larger company would want to own, and keep clean records so a buyer can check them.

The Big Deal itself notes that equity needs only about US$466 million more in the fourth quarter for 2026 to beat 2025's equity total, which could make it the best equity year since 2022.

What should you do with this data?

  • Use the current numbers in your pitch, and name the tracker you used.
  • Read what investors look for in African startups before you approach the funds active this year.
  • Get structure and feedback before you raise. The Hackhouse Residency runs for 12 weeks with no equity taken: Spark for idea-stage founders at KES 25,000 and Scale for growth-stage founders at KES 35,000. Applications for HH Gen 27.1 are open.
  • Come to our events. The Cohort 4 Demo Day is on Tuesday 17 November 2026 at 5pm.

Key facts

  • African startups raised US$4.1 billion in 2025, including a record US$1.6 billion in debt, 41% of the total (Partech).
  • 311 startups raised US$100,000 or more from January to September 2026, down 18% (Africa: The Big Deal).
  • Deals of US$10 million or more took 83% of 2026 funding to September.
  • Nigeria (US$635 million) and Egypt (US$445 million) lead 2026; Kenya is down 73% to US$201 million.
  • Logistics and transport (US$780 million) edged past fintech (US$760 million) on funding, driven by Spiro and Moove.
  • Sub-Saharan Africa moved US$1.4 trillion through mobile money in 2025.

Frequently asked questions

How much did African startups raise in 2025?

Partech counted US$4.1 billion in equity and debt, up 25%. Africa: The Big Deal, which uses a different method, counted US$3.2 billion.

Which African country gets the most startup funding in 2026?

Nigeria, with US$635 million from January to September 2026 according to Africa: The Big Deal, ahead of Egypt at US$445 million.

Why did Kenyan startup funding fall in 2026?

The Big Deal shows Kenya at US$201 million to September, down 73%. Partech says Kenya's 2025 total was driven by large debt rounds and megadeals, and totals built on a few big deals swing sharply from year to year.

Is fintech still the biggest sector in African tech?

By number of startups raising, yes. By money raised to September 2026, logistics and transport was slightly ahead because of two very large rounds.

Sources

Go deeper with us. Join the Hackhouse community for conversations that go beyond the surface, where builders share the hard-won lessons that never make it into press releases.

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