Morocco and Tanzania each secured $40 million, helping ventures outside Nigeria, Kenya, Egypt and South Africa capture more than half of October’s $183 million funding, even as overall investment activity weakened.
African startups outside the continent’s traditional Big Four markets (Nigeria, Kenya, South Africa and Egypt), attracted 54 percent of disclosed funding in October, marking an unusual shift in investment distribution as Morocco and Tanzania emerged alongside Nigeria among the month’s biggest beneficiaries.
The 34 start-ups that announced funding rounds of at least $100,000 raised a combined $183 million during the month, excluding exits, according to data from Africa: The Big Deal.
Ventures based outside Nigeria, Kenya, Egypt and South Africa accounted for approximately $99 million, while the four dominant markets attracted the remaining $84 million.
The shift was driven largely by two $40 million equity transactions involving Moroccan healthcare company ABA Life and Tanzanian agritech venture East Africa Foods. Their combined $80 million represented nearly 44 percent of all funding announced during the month.
ABA Life secured $40 million from Admaius Capital Partners, while East Africa Foods raised a $40 million Series B from investors including InfraCo Africa, Oikocredit and FMO.
The transactions placed Morocco and Tanzania among Africa’s leading start-up funding destinations in October, challenging the concentration of investment that has historically favoured Nigeria, Kenya, Egypt and South Africa.
Nigeria nevertheless ranked first, attracting $42 million across nine start-ups, largely through debt financing for energy and mobility businesses. Morocco and Tanzania followed with $40 million each, while Egypt secured $19 million and Senegal attracted $13 million, in October 2026.
The figures suggest that investors are financing opportunities beyond the continent’s established technology hubs, particularly in healthcare, agriculture, renewable energy and other climate-related businesses.
However, October’s geographical shift should not yet be interpreted as a sustained redistribution of venture capital. The Big Four still accounted for 26 of the 34 start-ups that secured at least $100,000, indicating that the established markets continue to dominate the breadth of investment activity.
The month’s funding distribution was also heavily influenced by a small number of large transactions rather than a broad-based increase in investor participation across emerging markets.
This distinction is important because the number of funded ventures across Africa remains considerably below last year’s levels, despite the emergence of new funding destinations.
Overall, October’s $183 million was 24 percent below September’s $241 million and 29 percent below the average monthly funding of $259 million over the preceding 12 months. It was also 58 percent lower than the $435 million recorded in October 2025, when Nigerian payments company Moniepoint and electric mobility company Spiro raised $90 million and $100 million respectively.
The number of funded start-ups also declined to 34, against a 12-month monthly average of 43.
Climate financing drives investment mix
Climate technology businesses accounted for 55 percent of October’s funding, reflecting the importance of energy access, renewable infrastructure and agricultural resilience in the continent’s investment landscape.
Equity financing represented $110 million, or 60 percent of the total, while debt accounted for $71 million, representing 39 percent. Grants contributed approximately $2 million.
Beyond the two $40 million equity rounds, several debt transactions featured prominently.
ValU in Egypt raised $17 million through a bond issuance, while Senegal-based Afreenergy Solar secured $13 million. In Nigeria, Bisedge received an $11 million loan from Finnfund, while Beacon Power Services secured a $10 million loan from the European Bank for Reconstruction and Development.
The composition of these transactions points to a funding market in which capital is increasingly reaching businesses operating in sectors requiring substantial infrastructure investment, although the October figures alone cannot establish a long-term shift in investor preferences.
The strong showing of climate-related businesses also highlights the role of debt financing in supporting companies whose expansion requires significant capital expenditure and longer investment horizons.
Read also: Africa’s $3.08bn investment paradox: more fund capital, fewer startup deals
Africa’s funding market remains under pressure
Despite October’s geographical diversification, the broader African start-up funding market continues to face a difficult year.
Between January and October 2026, start-ups raised $2.4 billion, 12 percent below the $2.7 billion recorded during the corresponding period of 2025.
The decline has been driven primarily by weaker debt financing. Equity investment increased by five percent year-on-year to $1.6 billion, while debt financing fell by 33 percent to $740 million from $1.1 billion.
The number of start-ups securing at least $100,000 also dropped sharply. Only 343 ventures raised funding during the first 10 months of 2026, compared with 438 in the same period last year, representing a 22 percent decline.
This is the lowest January-to-October figure since Africa: The Big Deal began tracking funding rounds of at least $100,000 in 2021.
Investor participation has weakened as well, with the number of named active investors falling from more than 442 to more than 370, a decline of 16 percent.
The figures reveal a market where the headline value of equity financing remains relatively resilient, but fewer companies are accessing capital and the pool of active investors is narrowing.
For start-ups outside the Big Four, this creates both an opportunity and a challenge. The October transactions demonstrate that businesses in markets such as Morocco and Tanzania can attract substantial international capital, but the wider decline in deal activity suggests that access to funding remains selective.
Read also: African-owned gaming startup raises $1m to challenge global video game giants
2026 equity funding could outperform 2025
With two months remaining in the year, Africa’s start-up funding market is unlikely to match the $3.2 billion raised in 2025.
Start-ups would need to announce another $814 million in November and December to reach that level, compared with the $496 million raised during the corresponding two months last year.
However, equity financing could tell a different story.
An additional $338 million in equity deals would be sufficient to surpass the $1.9 billion recorded in 2025. That target is within reach at the average monthly equity funding pace of the preceding 12 months.
Consequently, 2026 could become Africa’s strongest year for start-up equity financing since 2022, even as total funding remains below last year’s level.
October’s performance offers an indication of how investment destinations could become more geographically diverse, with Morocco, Tanzania and Senegal attracting transactions that would previously have been overshadowed by the continent’s largest technology markets.
Whether this represents the beginning of a lasting shift will depend on whether smaller markets can sustain investor interest beyond a handful of large transactions and translate isolated funding successes into a broader pipeline of financed businesses.
Royal Ibeh is a senior journalist with years of experience reporting on Nigeria’s technology and health sectors. She currently covers the Technology and Health beats for BusinessDay newspaper, where she writes in-depth stories on digital innovation, telecom infrastructure, healthcare systems, and public health policies.
