Disclosed by Africa: The Big Deal, the amount raised was well below the $276 million recorded in January 2025 and also under the average monthly total of $263 million seen over the past 12 months. 

Still, it was higher than January figures from earlier years, including 2023 and 2024, when funding volumes were far lower.

What stood out in January was not just the money, but the number of deals. 

Only 26 startups across the continent announced funding of $100,000 or more. That figure is unusually low and the weakest monthly count since at least 2020. 

A small group of companies accounted for much of the funding announced during the month. In Egypt, fintech firm valU secured $64 million in debt from the National Bank. 

Nigeria-based mobility financing company MAX raised $24 million through a mix of equity and asset-backed debt.

Several other firms closed double-digit rounds. NowPay, another Egyptian fintech, raised $20 million in equity. Moroccan proptech start-up Yakeey announced a $15 million Series A round. 

Terra Industries raised $12 million, while Côte d’Ivoire fintech company Cauridor announced a round of more than $10 million.

There were also transactions that did not count towards the funding total. Flutterwave acquired Nigerian startup Mono in an all-stock deal valued at about $30 million. 

Tech talent company Savannah was acquired by Commit, and Izili Group took over off-grid solar firm Qotto.

January is usually a slow month for startup funding, both African and international, especially after a busy December, and similar dips were recorded at the start of 2023, 2024 and 2025, not just 2026. 

Even so, the thin deal flow this time has shown how tough investors have become.

Fintech continued to attract the largest share of capital, but deals in property technology, mobility and defence showed that interest was spread across sectors. 

Egypt and Nigeria led activity, while Morocco and Côte d’Ivoire featured through fewer but sizeable transactions.

This took up 29% of the total raised across Africa and topped the regional figures for East Africa, which as a whole, secured $725 million in funding, equivalent to one-third of Africa’s total startup investments. 

Being the second consecutive year the region maintained its top spot, even though there was an 18% year-over-year decline, Kenya received investments in sectors such as climate tech, including companies like d.light, SunCulture, and Basigo. 

Meanwhile, Tanzania and Uganda contributed $53 million and $19 million, respectively, making smaller but notable contributions to the region’s performance.

West Africa’s Recovery and Nigeria’s Steadfast Performance

West Africa ranked second in 2024, recording $587 million in funding—27% of the continent’s total. Nigeria led the region with over $400 million raised, maintaining parity with its 2023 performance and placing it among Africa’s top three startup markets. 

Major deals included Moove’s $110 million and Moniepoint’s $110 million, which helped boost the country’s startup sector despite economic challenges.

What further supported West Africa’s growth was its balanced contributions from other nations. Ghana raised $68 million, Benin $50 million, Côte d’Ivoire $33 million, and Senegal $22 million. 

This diversity strengthened the region’s place and mitigated the minor 3% decline in funding compared to the previous year.

North and Southern Africa Funding Declines

Northern and Southern Africa experienced funding contractions in 2024. North Africa raised $478 million, a 35% drop compared to 2023, primarily due to a 37% decline in Egypt, which accounted for 84% of the region’s funding. Morocco held steady with $70 million, but it was insufficient to offset Egypt’s steep decline.

In Southern Africa, funding fell by 36%, amounting to $397 million. South Africa, which accounted for 99.4% of the region’s funding, experienced a 34% drop. 

The region’s heavy reliance on South Africa continued to emphasize the limited contributions from neighbouring countries, further revealing its challenges in diversifying funding sources.

Central Africa Struggles to Gain Traction

Central Africa remained the least funded region, raising only $5 million in 2024—a sharp decline from its already low 2023 figures. The negligible contribution pointed to the region’s limited role in Africa’s startup industry.

Africa’s Big Four

Kenya, Nigeria, Egypt, and South Africa collectively accounted for 84% of all startup funding in Africa in 2024, maintaining a trend that started since 2019. These nations remain key in bolstering the continent’s investment sector.

He made this statement at the 10th Annual National Migration Dialogue in Abuja, themed “Beyond Borders: Celebrating Migrants’ Legacy, Protecting Their Rights.”

Shettima noted that Nigeria leads West Africa in diaspora remittances, with $21.9 billion recorded in 2022. This figure represents 64% of all remittances within the region, highlighting the economic value of Nigerian migrants. 

“Migration is not merely a movement across borders; it is a powerful force driving development at both global and national levels,” Shettima said.

Beyond financial contributions, Nigerian migrants do great in diverse fields such as technology, medicine, sports, and the creative arts. “Our migrants are global ambassadors, showcasing the transformative potential of Nigerians worldwide,” Shettima added.

Irregular Migration Remains a Challenge

The Vice President acknowledged that Nigeria serves as both a source and destination for migrants, with over 1.3 million international migrants residing in the country. 

However, irregular migration continues to bring challenges. In 2024 alone, Nigeria repatriated and reintegrated approximately 10,000 citizens detained for migration-related offences in Africa and Europe.

“These figures reveal the vulnerabilities associated with migration and emphasise the need for coordinated efforts to mitigate these challenges while harnessing migration’s potential for economic growth,” Shettima stated.

He assured that the Federal Government remains committed to addressing these issues through policies aimed at protecting the rights of migrants and maximising their economic contributions.

The Bigger Picture: Shifts in African Startup Funding

Nigeria’s place in migration-driven economic contributions contrasts with its recent decline in startup funding rankings within Africa. Once the leading destination for startup investments, Nigeria fell to fourth place in 2023, with Kenya taking the top spot by attracting $800 million.

Research by Africa: The Big Deal shows that African startups raised $2.9 billion in 2023, a 39% year-on-year decline. The “Big Four”—Kenya, Nigeria, South Africa, and Egypt—accounted for 87% of the total funding, with Kenya securing 28% of the continent’s share.

South Africa was the only country among the Big Four to experience growth in startup funding, with a 21% share of the total and a year-on-year increase of 8%. Conversely, Nigeria’s funding took a significant hit, reflecting broader economic challenges.

While Shettima celebrates the resilience and achievements of Nigerian migrants, the economy stresses the need for more solid strategies to maintain Nigeria’s competitiveness in key sectors.