Start-ups from Egypt, Kenya, Nigeria, South Africa, and other parts of the region have raised $600 million in the first quarter of 2026, a 27 per cent increase from $470 million in Q1 2025.
 
Statistics from Africa: The Big Deal, which revealed this yesterday, noted that the funding was largely debt.
 
The report disclosed that debt funding expanded sixfold from $50 million in Q1 of 2025 to $305 million in Q1 of 2026, while equity funding declined by 27 per cent from $400 million in Q1 of 2025 to $290 million in Q1 of 2026.
 
For the first time in recent quarters, debt has become a dominant force in Africa’s start-up funding landscape.
 
Co-founder of Africa: The Big Deal. Max Cuvellier Giacomelli said: “The numbers look decent at first glance, but the sharp decline in equity and the disappearance of smaller deals point to a more challenging environment for early-stage start-ups.”
 
According to the report, the deals dropped by 34 per cent from 140 in Q1 of 2025 to 92 in Q1 of 2026. Smaller $100,000–$500,000 rounds were particularly hard hit, falling from 73 to 32.
 
Meanwhile, $10 million-plus deals rose from 14 to 18 and now represent 82 per cent of total funding, up from 63 per cent. This concentration pushed the median deal size more than double, from $0.5 million to $1.3 million.
 
The report also showed that exits doubled from six to 12, providing much-needed liquidity.

Climate tech funding also grew strongly by 48 per cent to $184 million, increasing its share from 26 per cent to 31 per cent, even as energy deals declined. Fintech retained its position as the top sector.
 
Women founders and CEOs continued to face significant challenges. Funding for start-ups with at least a woman founder or CEO fell 56 per cent from $111 million in Q1 of 2025 to $49 million in Q1 of 2026, with the number of such deals dropping from 46 to 20.
 
Their share of total funding shrank from 24 per cent to just eight per cent. “Limited access to early-stage financing continues to constrain the pool of investable female founders,” said Director of Portfolio and Strategy at TLcom Capital, Daisy Liech.
 
Geographically, the Big Four markets (Nigeria, Kenya, South Africa, and Egypt) still dominated activity, though their relative share showed slight moderation.
 
The Q1 of 2026 data underscores a maturing African start-up ecosystem where more established companies are turning to debt to fuel growth without heavy dilution, while early-stage and smaller ventures, especially those led by women, struggle for equity capital.