The African ecosystem is currently a study in contradictions. While the total capital flowing into the continent remains resilient, the volume of deals is hitting record lows.

March 2026 saw $151 million raised across 22 startups, a massive triple jump from the doldrums of March 2025, yet still 43 per cent below the rolling 12-month average of $266 million.

According to Africa: The Big Deal’s latest analysis, March was defined by credit, noting that of the $151 million, $96 million (64 per cent) was debt, leaving equity at a modest $55 million. This trend isn’t just a monthly blip; Q1 2026 finished with a nearly even split.

For instance, total funding for Q1, 2025, was $469 million, but in Q1, 2016, the figure rose to $600 million. Further, in Q1 2025, equity was 89 per cent as against 49 per cent in the same period in 2026. But debt was 11 per cent in Q1 last year, but went up this year to 51 per cent.

The month was dominated by three key players, accounting for the vast majority of the capital. They are Sistema.bio, which secured a massive $53 million debt facility. There was also MNT-Halan, which continued its dominance with over $40 million in bond issuance. There was also Zeno, which provided a rare equity highlight with a $25 million Series A.

On the M&A front, the ecosystem remains active but opaque. Five undisclosed exits were recorded, headlined by Moniepoint’s acquisition of Orda.

Beneath the billion-dollar rolling totals ($3.3 billion for the last 12 months) lies a sobering reality: the funnel is narrowing. Here, fewer than 22 startups raised in March, the lowest monthly count since tracking began in 2021.

The most alarming metric is at the “pre-seed to seed” level. According to the analysis, only 130 ventures raised between $100k and $500k in equity over the last 12 months. This is a significant drop from the over 150 a year ago and represents a historical low.