African startups raised $272 million in February 2026, marking a recovery. The figure represents a 56% increase from January’s $174 million.
Forty startups drove February’s numbers, according to Africa: The Big Deal. The figure exceeded the $254 million monthly average significantly.
The funding surge signals renewed investor confidence across the continent. Electric mobility emerged as the largest category, attracting $107 million. Climate technology and sustainable transport dominated investment flows.
Benin-based Spiro closed $57 million in debt funding from Afreximbank. The electric mobility company operates across six African countries. The company plans to build more battery swap stations.
Egyptian e-commerce startup Breadfast raised $50 million in funding. Mubadala Investment Co. and Saudi billionaire investors backed it. The company moves closer to its proposed IPO.
Ivorian mobility fintech GoCab closed a $45 million round. The round includes $15 million in equity and $30 million in debt. E3 Capital and JANNGO Capital co-led the investment.
Nigerian defense technology startup Terra Industries raised $22 million. This brings the company’s total funding to $34 million. Lux Capital led the latest funding round.
South African edtech Enko Education secured $22 million in financing. South African startup Lula secured $21 million from FMO.
Six startups accounted for about 80 percent of funding. This highlights how capital remains focused on larger ventures.
Equity investments accounted for 54 percent of capital raised. Debt financing made up about 45 percent of funding. Startups increasingly turn to alternative funding structures.
West Africa attracted the largest funding share with 53 percent. North Africa followed with 24 percent of investment. Southern Africa secured 21 percent of the allocation.
Egypt led the continent with $64 million in funding. Benin followed closely with $57 million raised in February. Côte d’Ivoire secured $45 million in investments.
South Africa raised $44 million across multiple deals. Kenya secured $68 million, driven primarily by Spiro’s funding. Nigeria raised $23.5 million from defense technology.
Renewable energy ranked second, raising $94 million in February. Solar Africa’s funding round dominated this category entirely. Climate-focused ventures continue attracting the largest investments.
Online grocery delivery followed with $50 million raised. Digital financial services combine fintech and neobank platforms. Defense technology attracted $22 million overall.
African startups have now raised $446 million in 2026. This exceeds the $417 million recorded during 2025. Therefore, 2026 started stronger than the previous year.
However, funding composition changed dramatically from previous years. Equity capital fell from $333 million to $209 million. Debt capital rose from $105 million to $278 million.
Series A rounds declined from 13 deals to four total. Series B rounds dropped from three to zero completely. This reflects a significant change in preferences toward established firms.
The US-based investor count dropped from 30 to 14 participants. High-profile venture capital names disappeared from deals completely. Development finance institutions increased participation notably across regions.