African startup funding reaches $705 million in first quarter

Venture capital investment in African startups totaled $705 million in the first quarter of 2026, according to data from Semafor, marking continued growth in the region's technology ecosystem. The figure represents sustained investor interest in African markets despite global economic headwinds. Fintech remains the dominant sector, though climate tech and logistics companies also attracted significant capital. Nigeria, Kenya, South Africa, and Egypt continue to lead in deal volume, though investors are increasingly looking at emerging hubs including Ghana, Morocco, and Senegal. The first-quarter numbers build on momentum from 2025, when African startups raised over $2.5 billion. Local venture capital funds and international investors have increased their presence, with several new funds closing in the past six months. However, challenges persist. Currency devaluation in key markets including Nigeria and Egypt has complicated operations for startups with international investors. Infrastructure gaps and regulatory uncertainty in some countries continue to create friction for entrepreneurs. The data suggests African tech remains resilient compared to other emerging markets that have seen sharper declines in venture funding.