African startup funding plunges 80% as investors shift to loans

Funding for African startups has plunged by more than 80 per cent as investors tighten their purse strings and increasingly choose to lend money to businesses rather than take ownership stakes in them.
Data reported by Nairametrics showed that 47 African startups raised a combined $102.2 million in July 2026, representing an 80.2 per cent fall from the $515.6 million raised by 52 startups in June.
The July figure was also 81.6 per cent lower than the $554.3 million raised by African startups in July 2025.
The sharp decline highlights the difficult funding environment facing Africa’s young businesses, many of which depend on external investment to expand, hire workers and develop new...