Logistics and Transport has overtaken Fintech as Africa’s leading startup sector by funding raised in the first nine months of 2026.
The findings form part of the third and final instalment of an analysis of Africa’s startup funding performance between January and September 2026, examining the sectors attracting investment, the countries receiving the largest share of funding, and the distribution of capital between male-led and female-led ventures.
According to Africa: The Big Deal, logistics and Transport raised $780 million in the first nine months of 2026, accounting for 36% of the total funding secured by African startups. This placed the sector ahead of Fintech, which attracted $760 million, representing 35% of the total.
Although Fintech retained its position as the sector with the highest number of funded startups, with 80 ventures raising at least $100,000, Logistics and Transport recorded an unprecedented share of overall funding.
The sector’s 36% contribution represents its highest share since tracking began, significantly exceeding the previous record of 17% recorded during the first nine months of 2019. In the corresponding period of 2025, Logistics and Transport accounted for only 7% of total startup funding.
However, much of the sector’s performance was driven by two companies: electric mobility startup Spiro, which raised $345 million, and mobility financing company Moove, which secured $250 million. Together, the two companies accounted for approximately three-quarters of the sector’s funding.
Excluding these two transactions, Logistics and Transport would have attracted approximately $185 million, broadly in line with its historical funding levels.
This suggests that the sector’s remarkable performance was driven largely by a small number of substantial transactions rather than a widespread increase in investment across the industry.
Energy and Healthcare Record Significant Funding Declines
While Logistics and Transport experienced a funding surge, Energy recorded one of the steepest declines among Africa’s startup sectors.
After raising $721 million in the first nine months of 2025, equivalent to 32% of total startup funding, the Energy sector attracted only $187 million during the same period in 2026. This represented a 74% year-on-year decline and reduced its share of total funding to 9%, its lowest level since 2021.
The decline was largely attributed to reduced debt financing, which had contributed significantly to the sector’s strong performance in the previous year.
Healthcare also experienced a substantial contraction. Startups in the sector raised just $21 million across 35 ventures, compared with $178 million in the corresponding period of 2025. The 88% decline marked the sector’s lowest first-nine-month funding total since tracking began in 2019.
Meanwhile, Climate Tech continued to account for a significant portion of investment across multiple sectors, representing 35% of total funding in the first nine months of 2026, compared with 39% in 2025.
Nigeria Reclaims Its Position as Africa’s Leading Startup Funding Destination
Nigeria emerged as the continent’s leading startup funding destination during the first nine months of 2026, with startups headquartered in the country raising $635 million.
The figure represented a 2.6-fold increase from the $247 million recorded during the corresponding period of 2025 and marked Nigeria’s strongest funding performance since 2022.
Several large transactions contributed to the increase, including Moove’s $250 million raise, Flutterwave’s $100 million transaction, Jumia’s $50 million raise and Yellow Card’s $40 million funding round.
However, Nigeria’s performance extended beyond these major transactions. A total of 77 Nigerian startups raised at least $100,000 during the period, up from 70 in the corresponding period of 2025. This was the highest number recorded by any African country.
Excluding pan-African startups, Nigeria accounted for 37% of total funding raised by country-specific ventures, representing its largest share since 2021.
The figures indicate that Nigeria’s recovery was supported by both substantial funding transactions and an increase in the number of startups securing investment.
While Nigeria recorded a strong rebound, the other members of Africa’s Big Four startup ecosystems experienced varying funding outcomes.
Egypt attracted $445 million during the first nine months of 2026, representing a 10% increase from the previous year. The country maintained a relatively stable funding position despite broader changes in the continent’s investment landscape.
Kenya, however, recorded a 73% decline in funding, with startups raising $201 million, their lowest first-nine-month total since 2020. South Africa also experienced a significant contraction, with funding falling 58% year-on-year to $182 million.
Part of Kenya’s decline reflects the reclassification of Spiro, a major electric mobility company operating extensively in the country, as a pan-African startup in the underlying database. Nevertheless, Kenya’s funding performance remained substantially below its level in 2025.
Despite the contrasting performances of the four major markets, their collective dominance remained largely unchanged. Nigeria, Egypt, Kenya and South Africa accounted for 85% of funding raised by country-specific startups, excluding ventures classified as pan-African. This compared with 83% in 2025 and remained within the 78% to 89% range recorded annually since 2019.
Nigeria Leads in Startup Activity as Other Major Markets Contract
Nigeria was also the only member of the Big Four to record an increase in the number of startups raising at least $100,000 during the period.
The country recorded 77 funded startups, representing a 10% increase year-on-year. In contrast, Kenya recorded 45 startups, down 32%; Egypt had 40, down 29%; and South Africa recorded 34, down 36%.
For Kenya and South Africa, the figures represented their lowest first-nine-month totals since tracking began in 2021.
The declines suggest that the slowdown in these markets extended beyond the total value of funding raised, affecting the number of ventures securing investment as well.
Outlook for Africa’s Startup Funding Market
The first nine months of 2026 presented a mixed picture for Africa’s startup ecosystem. Logistics and Transport emerged as the largest sector by funding, Nigeria reclaimed its position as the leading startup funding destination, and Egypt maintained modest growth.
However, the sharp declines in Energy, Healthcare, Kenya, South Africa and several smaller startup markets highlighted the uneven nature of the recovery. The strong performance of Logistics and Transport also depended heavily on two large funding transactions, underscoring the influence of individual deals on sector-wide statistics.
Beyond the geographic and sectoral shifts, the fact that women-founded and co-founded startups continue to receive less than 10% of total funding remains a significant concern for the continent’s investment ecosystem.
As the final quarter of 2026 approaches, the extent to which funding activity broadens beyond a handful of large transactions and dominant markets will be an important indicator of the sustainability of Africa’s startup investment recovery.
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