Africa’s startup ecosystem is getting through 2026 without a setback, but without a real rebound either. According to data compiled by TechCabal, the continent’s young companies raised $2.10 billion between January and August across 275 tracked deals, compared with $2.07 billion over the same period last year. The 1.4% year-on-year increase points above all to stabilization. Of these transactions, 255 had publicly disclosed amounts and 20 remained confidential.
The country ranking holds a surprise. Nigeria keeps the top spot with $528.6 million, but Benin comes next with $327.1 million, ahead of Egypt’s $322 million. Benin’s performance rests largely on a single deal: the $215 million debt and equity round closed in June by Spiro, the electric mobility specialist. South Africa and Kenya round out the top five.
August was the strongest month of the year, with $438 million raised. Three deals accounted for most of that volume: Moove’s $250 million Series C, Jumia’s $50 million round and Yellow Card’s $40 million raise. Investors are favoring solid, established companies operating in mobility, e-commerce and clean energy.
This overall picture hides a more uneven reality. Early-stage founders face a noticeably tougher environment and are increasingly relying on government grants, fellowship programs and small Web3 investments. In August, for instance, CcHUB and the Mastercard Foundation awarded $100,000 each to twelve edtech startups. For many entrepreneurs, the priority is now to build profitable businesses rather than to line up the next funding round.
Figures do vary depending on how deals are counted. The Briter Africa Venture Pulse report, released in August, cites $3.3 billion raised in the first half alone, up 73% year on year. Whichever source one relies on, the conclusion holds: capital is flowing, but it is concentrated in a handful of countries and well-established champions.