African startups raised a combined $183 million in October 2026, with businesses outside the continent’s traditional leading investment markets accounting for 54% of the funding, according to data from Africa: The Big Deal.
The funding was secured by 34 startups across the continent, marking a 24% decline from the $241 million raised in September and coming in 29% below the average monthly funding of $259 million recorded over the preceding 12 months.
Despite the decline in total investment, October’s figures highlighted a shift in funding distribution, with Morocco and Tanzania emerging as two of the month’s largest destinations for startup capital.
The report showed that startups outside Nigeria, Kenya, Egypt and South Africa, commonly referred to as Africa’s Big Four markets, attracted more than half of the funding raised during the month.
It was the highest share recorded by smaller African startup markets since November 2022.
Morocco and Tanzania lead major deals
Morocco and Tanzania each attracted approximately $40 million in October, placing them among the continent’s leading destinations for startup investment during the month.
Moroccan healthcare company ABA Life raised $40 million in equity financing from Admaius Capital Partners.
Tanzania-based agritech company East Africa Foods also secured a $40 million Series B funding round, with investors including InfraCo Africa, Oikocredit and FMO.
Other major transactions included funding for companies in Egypt, Senegal and Nigeria.
Nigerian startups attracted approximately $42 million across nine ventures, with much of the funding coming through debt transactions in the energy and mobility sectors.
Egyptian startups raised about $19 million, while Senegal secured approximately $13 million.
The figures show that investment activity was distributed across several markets, rather than being concentrated entirely in the continent’s largest startup ecosystems.
Equity accounts for most of October’s funding
The October funding breakdown showed that equity investments accounted for approximately $110 million, representing 60% of the total.
Debt financing contributed about $71 million, or 39%, while grants accounted for approximately $2 million.
Equity financing gives investors ownership stakes in companies, while debt financing provides businesses with loans that must be repaid.
The distribution indicates that equity remained the largest source of startup funding during the month, although debt continued to play an important role in sectors such as energy and mobility.
October’s performance was also significantly lower than the same month in 2025, when African startups raised $435 million.
The previous year’s figure was boosted by major transactions, including $100 million raised by electric mobility company Spiro and $90 million secured by Nigerian fintech company Moniepoint.
Funding remains below 2025 levels
Between January and October 2026, African startups raised approximately $2.4 billion, down 12% from the $2.7 billion recorded during the same period in 2025.
Equity funding increased by 5% to $1.6 billion, while debt financing declined by 33% to $740 million.
The number of startups raising at least $100,000 also fell. Africa: The Big Deal recorded 343 startups securing funding during the first 10 months of 2026, compared with 438 during the corresponding period in 2025.
The number of identified active investors also declined, suggesting that fewer companies and investors participated in the market.
The report noted that African startups would need to raise another $814 million in November and December to match the $3.2 billion raised throughout 2025.
Although matching the previous year’s overall funding total appears challenging, the report said 2026 could still become the strongest year for equity funding since 2022.
October’s figures suggest that investment opportunities are becoming more geographically diverse, even as the overall funding environment remains difficult.
For startups outside the traditional Big Four markets, the increased share of funding could signal growing investor interest in less-established ecosystems. However, sustaining that momentum will depend on whether these businesses can attract repeat investment and demonstrate their ability to scale.
