The first three months of 2026 are in the books. At TechCabal Insights, we’ve been busy tracking every dollar and deal moving through the continent.
Here is your high-level briefing on the state of the market.
The Big Number: $711 Million
In Q1 2026, we tracked over 80 deals across the African tech ecosystem.
While 18% of these deals remained undisclosed, the disclosed transactions added up to a solid $711 million.
This capital flowed through a healthy mix of equity, debt, and grant funding.
Where is the Money Going?
Egypt and South Africa are currently leading the race for capital in 2026.
Egypt secured $154M, followed closely by South Africa at $134M, with Kenya and Nigeria rounding out the top four.
Fintech and Energy Remain King
Investors are still doubling down on financial services and sustainable infrastructure.
Fintech attracted $221M, while the Energy & Water sector secured $141M to solve the continent’s power gaps.
Logistics and Transport followed closely behind with $149M in total investment.
Hot: A Wave of M&A Activity
The “exit” story is heating up with over 30 M&A deals tracked this quarter.
Notable moves include Flutterwave acquiring Mono and Moniepoint’s aggressive expansion into Kenya via Sumac Microfinance Bank.
These deals show that larger players are now buying their way into new markets and product lines.
Not: The Graveyard and the Pink Slips
Growth has come with a heavy cost for many workforces this quarter.
We saw over 1,300 layoffs, with Kenyan climatetech firm KOKO letting go of its entire 700-person team after a carbon credit dispute.
Startups like Zap Africa and Kuda also cut staff as they shifted focus toward AI and core business units.
The Shutdown Signal
Capital is drying up for those who can’t find a path to profit.
Jumia exited Algeria, and Uber ceased operations in Tanzania as competition and costs mounted.
Even long-standing names like Showmax and City Press (after 44 years) announced closures to cut costs.
We tracked over 18 expansions in Q1 2026
Africa’s startups are no longer staying local; they are going global.
Lemfi expanded its payment services into Australia and Canada, while MoneyHash entered Iraq.
Closer to home, Auto24 and Payaza are deepening their footprints in Rwanda and Uganda.
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