African startups raised $2.16 billion between January and September 2026, excluding exits. That’s 4% below the $2.24 billion raised in the same period of 2025. The headline number hides a bigger shift; the mix of money changed.
Equity funding totaled $1.5 billion, up 23% year on year. Debt fell 33% to $669 million from over $1 billion. Debt’s percentage of total funding fell to about 31%, down from 45% a year ago.
Few expected this in July. That month, 44 businesses raised $102 million, with only $25 million in equity, the lowest monthly amount since April 2019. Debt accounted for 74% of July’s finance. M-KOPA lead with a $30 million senior financing facility from the Dutch development bank FMO to finance electric motorcycles in Kenya, followed by Bridgement with $20 million.
A few very substantial equity rounds turned the year around. In May, Paymentology secured $175 million in a round headed by Apis Partners and Aspirity Partners. Spiro raised $215 million in equity from Impact Fund Denmark and Equitane, plus $55 million from Chinese growth fund NewTrails Capital.
August was the year’s biggest month, at $438 million. Moove closed a $250 million Series C at a $2.1 billion valuation, led by Mubadala and co-led by Toyota’s growth fund Woven Capital and Ion Pacific. Jumia raised $50 million, anchored by $25 million from the IFC, with existing shareholder Axian also taking part. Yellow Card closed $40 million from SC Ventures by Standard Chartered, Sony Innovation Fund, Polychain Capital and Blockchain Capital.
Concentration is important. The majority of the equity went to a few late-stage enterprises, while early-stage founders relied on government grants, fellowships, and modest Web3 cheques.
The longer view provides a more stable perspective. Startups raised approximately $3.1 billion in the year ending September 30, up marginally from $3 billion the previous year. Rolling equity rose to almost $2.2 billion, up from $1.8 billion and the highest amount in three years. Debt is lower this year, but it still has a considerably greater impact on the ecosystem than it did before 2023.
The full-year target is now $3 billion. Funding could be close if the fourth quarter follows prior trends, and one late mega-round would put it within reach.
