Startup funding in Africa rebounded in February 2026 after a weak start to the year, but the recovery was driven largely by a handful of big deals, new data from Africa: The big deal shows.
Forty startups across the continent raised more than $272 million in funding last month through deals worth at least $100,000. The figure marks a clear rise from $174 million in January and is slightly above the $254 million monthly average recorded over the past year.
Despite the rebound, most of the money went to only a few companies. Six startups accounted for about 80 percent of the total funding raised in February, highlighting how capital in Africa’s tech sector remains concentrated in larger ventures.
Among the biggest deals was Spiro, a Benin-based electric mobility company, which secured $57 million in debt financing across two transactions. Egyptian online grocery platform Breadfast raised $50 million in a pre-Series C round, while ride-hailing platform GoCab in Côte d’Ivoire announced $45 million in combined debt and equity funding.
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Other significant deals included Terra Industries in Nigeria, which added $22 million to a previously announced funding round, education group Enko Education in South Africa with $22 million in debt, and South African fintech lender Lula, which secured $21 million from Dutch development finance institution FMO.
Equity investments accounted for 54 percent of the capital raised in February, while debt financing made up about 45 percent, showing that startups are increasingly turning to alternative funding structures as venture capital remains cautious.
From a regional perspective, West Africa attracted the largest share of funding, bringing in 53 percent of the total, followed by North Africa with 24 percent and Southern Africa with 21 percent.
Egypt led the continent with $64 million in funding, followed by Benin with $57 million, Côte d’Ivoire with $45 million, and South Africa with $44 million.
One notable shift was the sharp drop in East Africa’s share of funding, which fell to just three percent in February. The region had previously dominated Africa’s startup ecosystem, accounting for 34 percent of total funding in 2025.
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With February’s rebound, African startups have now raised more than $446 million in the first two months of 2026, slightly ahead of the $417 million recorded during the same period in 2025.
The figures suggest that while investor activity has stabilised after a slow January, the continent’s startup funding environment remains uneven and heavily dependent on a small number of large transactions.
