In May 2026, 37 African startups announced a total of $135 million in funding through transactions exceeding $100,000, including equity, debt, and grants, excluding exits.
According to the latest monthly note from Africa: The Big Deal, a platform that tracks startup financing across the continent, cumulative fundraises from January to May 2026 reached $843 million across 160 deals (each over $100,000). The structure is now nearly balanced between equity and debt financing.
“Transaction volumes are recovering after March’s downturn, but the market’s engine remains the same — debt is playing a leading role in keeping volumes afloat,” the platform noted.
Activity picked up in May compared to April (32 deals), after a low point in March (22 deals). In dollar terms, May’s total improved from April ($110 million) but remained below March ($150 million) and well under the monthly average for the year, estimated at $255 million.
A gradual shift in financing models
The most striking trend was again the breakdown of funding instruments. In May, equity ($65 million) and debt ($68 million) were almost perfectly balanced, with an additional $2 million in grants.
Just 12 to 18 months ago, equity represented over 70% of total funding — signaling a strong reliance on venture capital. By number of deals, however, equity rounds still dominate: 22 startups raised equity in May, compared to 7 debt deals and 8 grant financings (typically small amounts).
Nigeria leads, fintech stays king
Geographically, West and East Africa accounted for nearly 85% of funds raised in May. Nigeria alone represented about 64% of all equity raised on the continent.
Sector-wise, fintech confirmed its dominant position, driven by deals from startups like Nala and LemFi. While a relatively diverse set of startups attracted funding, a large share of capital remained concentrated in a few major transactions.
‘New normal’ taking hold
Africa: The Big Deal concludes that May fits into a “new normal” taking shape for 2026: between 30 and 40 deals per month, for a monthly volume ranging from $100 million to $200 million.
