Startups in Nigeria and indeed, Africa have raised $2.2 billion between January and September 2026, a slight dip of four per cent compared to the same period last year.

Africa: The Big Deal, however, in the September analysis, observed that beneath the flat headline number lies a striking shift: equity funding surged by 23 per cent year-on-year, while debt financing fell sharply by 33 per cent.

According to it, equity financing has reclaimed its dominance in Africa’s start-up ecosystem. In the first nine months of 2026, equity deals totaled $1.5 billion, marking the strongest January–September performance since 2022. This figure outpaces 2023 ($1.4 billion), 2024 ($1 billion), and 2025 ($1.2 billion), and is more than double the pre-“funding heatwave” levels of 2019 and 2020.

According to it, Q3 alone was a standout quarter, with $580 million in equity raised, 2.5 times more than Q3 2025. The headline deal was Moove’s $250 million Series C in August, but even without it, equity funding would still be up 40 per cent year-on-year. Other notable raises included Jumia ($50m), Yellow Card ($40 million), Paymob ($35 million), Odyssey Energy Solutions ($27 million), and Moment ($22 million Series A).

Debt financing, which had been one of the defining trends of the past three years, slowed significantly in 2026. Start-ups raised $669 million in debt so far, down from $1 billion in the same period last year. Debt now accounts for 31 per cent of total funding, compared to 45 per cent in 2025.

The slowdown, according to Africa: The Big Deal, is partly explained by the absence of mega-deals like d.light’s $300 million and Sun King’s $156 million in 2025. Energy start-ups, traditionally the largest debt raisers, have been quieter this year, securing just $93 million compared to $585 million last year. The biggest debt deals in 2026—ValU ($64 million), Sistema.bio ($53 million), Spiro and NALA ($50 million each), and Odyssey ($47 million), were smaller and spread across different sectors.

Looking at rolling 12-month periods, the report noted that total funding has remained stable at around $3 billion, but equity and debt are moving in opposite directions. Equity reached $2.2 billion in the year to September 2026, its highest level in three years, while debt fell back to $840 million after peaking at $1.4 billion in March.

While one large debt facility in Q4 could still shift the balance, the trend is clear: equity is regaining strength. After years of debt-driven growth, 2026 is shaping up to be an equity year, signaling renewed investor confidence in Africa’s start-up ecosystem.

This shift, the report observed, underscores a broader narrative, which is that African start-ups are increasingly leaning on equity to fuel growth, while debt, though still significant, has lost some of its shine.

According to the report, with Q4 still ahead, the question is whether equity’s dominance will hold or if debt will stage a comeback. “For now, though, equity is firmly in the driver’s seat,” it stated.