African Startups Raise $272 Million in February, But Morocco Records Zero Major Deals

After a slow start to 2026, African startups raised $272 million in February as 40 companies secured funding of at least $100,000 each, according to data from Africa the Big Deal. The rebound marked a recovery from January’s $174 million and slightly exceeded the past year’s monthly average of $254 million. Notably, Morocco recorded zero major deals in February, a gap experts warn could leave the country behind as neighbours accelerate their funding activity.

“The continent moves fast, and markets respond to opportunities,” said a North Africa venture analyst. “Morocco risks being left behind if it does not adapt its funding structures and support for startups.”

Context and details

• February’s recovery was driven by a small number of large rounds. Spiro in Benin attracted $57 million in debt financing, Breadfast in Egypt closed a $50 million pre-Series C, and GoCab in Côte d’Ivoire combined $45 million in equity and debt.
• South African ventures also featured among the top contributors: Terra Industries raised $22 million, Enko Education secured $22 million in debt, and Lula raised $21 million. Together these six companies accounted for roughly 80% of February’s total funding.
• Geographic distribution of February funding showed West Africa leading with 53% of the total, North Africa capturing 24%, and Southern Africa taking 21%. East Africa, which dominated funding in 2025, accounted for just 3% of February’s totals.
• Country-level tallies placed Egypt at the top with $64 million, followed by Benin ($57 million), Côte d’Ivoire ($45 million) and South Africa ($44 million).
• Across the continent, African startups raised $446 million in the first two months of 2026, surpassing the $417 million recorded in the same period in 2025.

The absence of Moroccan deals is particularly striking given the country’s previous presence among top performers. Morocco’s silence in February prompted voices within the region to flag a need for renewed engagement and reforms in funding structures. The North Africa venture analyst emphasised that market responsiveness and opportunity capture are central to keeping ecosystems competitive.

Outlook

February’s rebound restored confidence in Africa’s startup ecosystem and underscored how a handful of large rounds can reshape monthly totals. For Morocco, the month represents a critical juncture: without concrete steps to reconnect with continental investment flows and adapt local funding mechanisms, the country risks falling further behind neighbours who are already securing large, cross-border rounds. The early-year momentum across Africa — up year-on-year for the first two months — suggests investors remain active, but the distribution of capital highlights widening regional disparities that will shape the remainder of 2026.