Africa's Startup Funding Surges 73% ......as Healthcare and EVs Attract Major Investment

African startups are heading towards a potentially record year for fundraising after investment in the continent's technology companies surged during the first half of 2026, signalling renewed investor confidence in Africa's rapidly developing innovation ecosystem.

According to research firm Briter, African-focused startups raised US$3.3 billion in the first six months of the year, representing a 73% increase from the same period last year and the strongest first-half performance in a decade.

The increase in funding came despite the number of deals falling by 10%, indicating that investors are committing larger amounts of capital to a smaller number of companies.

Healthcare emerged as one of the biggest beneficiaries, largely driven by the US$950 million raised by Zipline International, a California-based healthcare technology company that uses drones to deliver medical supplies to hospitals and clinics, including in Rwanda.

The electric mobility sector was another major winner, with EV company Spiro raising US$320 million, placing electric vehicles alongside healthcare among the sectors attracting the largest amounts of funding.

Fintech, meanwhile, continued to dominate deal activity, accounting for about a quarter of total funding raised during the period.

Investment remained concentrated in several key sectors, including fintech, agriculture, healthcare, education, clean technology and renewable energy, although African startups attracted interest across more than 40 sectors.

Rwanda recorded the largest share of funding, largely because of Zipline's major financing rounds. Kenya, South Africa, Egypt and Nigeria together accounted for 69% of funding activity on the continent.

However, the figures also highlight the international nature of Africa's startup ecosystem. About half of the capital raised went to entities primarily incorporated in the United States and the United Arab Emirates, raising questions about how much of the value generated by Africa's technology boom is retained on the continent.

The research firm said average deal sizes reached a decade high, driven by several funding rounds exceeding US$100 million. Median funding values also increased, suggesting that larger investments are increasingly reaching startups at early-to-mid stages of development.

Despite the impressive growth in fundraising, challenges remain around the ability of investors to realise returns.

Briter noted that actual market exits remain limited, with fintech the only sector showing significant exit activity, recording six acquisitions, while exits in other sectors remained very low.