African Startups Rebound
Startup funding in Africa rebounded to $272 million in February, driven by deals in EVs and green energy [https://www.techinafrica.com/african-startups-raised-272-million-in-february-2026/][https://businessday.ng/news/article/africa-startup-funding-rebounds-to-272m-in-february-but-big-deals-dominate-recovery/]. Is this a sign of a broader recovery in African tech?
While funding rebounded in February, six startups secured 80% of the total $272 million. Electric mobility startup Spiro was among the companies that received funding. Overall, African startups have raised $446 million in the first two months of 2026, exceeding the $417 million raised during the same period in 2025. Egypt led in February with $64 million in funding, followed by Benin ($57 million), Côte d'Ivoire ($45 million), and South Africa ($44 million). East Africa experienced a sharp decline, attracting only 3% of total funding compared to 34% in 2025. Fintech, cleantech and e-mobility are attracting the largest capital allocations. The African EV market is projected to reach $5.99 billion by 2031, with a CAGR of 53.9% from its 2026 value of $0.69 billion. Across the continent, 2.2 million fully electric vehicles are expected to be sold by 2027, a significant increase from 400 units in 2021. South Africa is offering EV manufacturers a 150% tax deduction on qualifying investments starting March 1, 2026. Looking ahead, growth is expected in fintech infrastructure, embedded finance, climate and energy solutions, AI-enabled software, and food-systems and trade-tech. Investors are favoring companies with demonstrable unit economics and clear paths to profitability. Venture debt is also on the rise, particularly in fintech and climate tech.
