Africa’s startup ecosystem raised approximately $3.1 billion in 2025, a 41% increase from 2024, marking a fundamental shift from hype-driven growth to building essential infrastructure. Clean energy overtook fintech as the top-funded sector, accounting for 53% of total investment. In 2026, the most compelling startups aren’t chasing unicorn valuations; they’re solving problems that matter at scale.
Clean Energy Revolution
Sun King announced one of the most ambitious plans in African tech: deploying 50 million solar kits across the continent between 2026 and 2030. This $5.6 billion initiative will expand clean energy access to 200 million people and add 3.8 gigawatts of solar capacity. Beyond distribution, Sun King is moving into manufacturing with plans to produce in Nigeria in partnership with the Nigerian Rural Electrification Agency, aiming to substitute $150 million in annual imports. This positions them as a cornerstone of West African industrialisation.
Koolboks addresses a devastating reality: up to one-third of all food produced in Africa rots due to a lack of cold storage. The startup provides solar-powered refrigeration as a service, allowing off-grid market vendors to keep produce fresh while paying in small daily instalments. After securing an $11 million Series A in September 2025, Koolboks announced plans for a local assembly plant in Nigeria. They’re building critical infrastructure for agricultural preservation.
Spiro raised $100 million in 2025 to expand its electric motorcycle financing and battery-swapping network across West Africa. As fuel prices fluctuate, Spiro offers a cost-effective alternative for commercial drivers while addressing climate goals, a rare alignment of impact and returns.
Fintech Meets Borderless Commerce
Moniepoint evolved from a payment processor to a critical financial infrastructure for small businesses. The Nigerian fintech closed 2024 as Africa’s newest unicorn with valuations above $1 billion, secured new licenses in markets like Kenya, and is making a massive push into remittance corridors between the US, UK, and Africa. A potential NASDAQ listing looms.
NALA has expanded from Tanzania to 11 African countries, plus the Philippines and Pakistan. Beyond consumer remittances processing transfers in minutes, NALA is building Rafiki, a B2B payment platform serving as infrastructure for other businesses. Backing from DST Global Partners, which funded WhatsApp and Spotify, signals serious growth ambitions.
Supply Chain Intelligence
Remedial Health is tackling pharmaceutical supply chain challenges in Nigeria, where global pharmaceutical giants are scaling back direct operations. The startup ensures reliable, affordable generic medications reach pharmacies while combating counterfeit drugs. As multinationals retreat, Remedial is positioned to become the trusted generic standard for the continent.
Ridelink serves as “air traffic control” for heavy goods transport in East Africa, using AI to match businesses with trusted hauliers for cement, steel, and timber. While asset-heavy logistics players like Sendy collapsed under debt, Ridelink closed a $1.1 million pre-seed round in November 2025 and is expanding across the East African Community.
Insurance Infrastructure Reimagined
Turaco has transitioned from an insurtech bet to a continental insurance infrastructure company. Its embedded microinsurance model has covered over 5 million people, with plans to reach 10 million by 2026 across Kenya, Uganda, Ghana, and Nigeria. The company broke even in multiple markets and funds expansion with its own revenues. Same-day claims processing via WhatsApp or mobile money contrasts starkly with legacy insurance processes that take weeks.
Pan-African HR Tech
Workpay serves over 1,000 businesses across more than 20 countries, with plans to cover 35 African markets. What started as a payroll tool has evolved into an HR, compliance, and Employer of Record platform, helping companies hire talent anywhere on the continent without establishing local entities. With $5 million in Series A funding backed by Visa, YC, and Norrsken22, Workpay integrates financial services directly into payroll while using AI to enhance workforce analytics.
Niche but Notable
Skeepy is Nigeria’s first pet HMO, pioneering premium collection for pet well-being. Founded in May 2025, the startup offers subscriptions covering routine care and emergency procedures. While nascent, Skeepy’s ability to educate the market while building a proprietary veterinary database could make it the default infrastructure for pet care.
Storipod partnered with crypto-exchange Busha to enable instant stablecoin payouts for African creators, solving cross-border payment headaches. In 2026, the platform aims to evolve from a writing tool to a full-fledged media ecosystem connecting creators with global audiences.
What’s Driving 2026
Several trends define the investment landscape. Debt financing now accounts for 45% of total startup funding, with companies that have predictable cash flows accessing non-dilutive capital at scale. Kenya’s clean energy sector exemplified this with 89% of July 2025’s $550 million investment structured as debt.
Local investors now comprise 31% of active venture capital participants, up from 19% a decade ago, while Middle Eastern investors from the UAE and Saudi Arabia are diversifying into African portfolios. Exit activity resumed in 2025 with over 50 startup acquisitions, predominantly by African banks, telecommunications groups, and corporates.
