Nearly 40% of African startup funding now comes from local investors
TechCabal | Muktar Oladunmade - Jan 26, 2026
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  • African investors accounted for nearly 40% of total startup funding in 2023, up from 25%.
  • Local fund managers have maintained a steady level of investment, indicating a maturing investment base.
  • Startups raised $3.6 billion in 2025, marking a 25% increase from the previous year.
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The increasing role of local investors in African startups is a positive development, fostering resilience and adaptability within the ecosystem. However, the ongoing challenges in securing growth-stage capital and achieving significant exits highlight the need for strategic interventions to enhance liquidity and support for scaling businesses.
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