According to Disrupt Africa, the number of active investors in African tech startups fell again in 2025, a worrying trend that could slow the continent's digital growth. This decline happened alongside record-low investments in African tech startups. Nairametrics reported that in January 2026, African startups raised only $174 million, down from previous years. Meanwhile, The Guardian Nigeria News highlighted the persistent gender funding gap in the sector.
The Decline in Investor Numbers
Last year, active investors in African tech startups decreased, as per Disrupt Africa. This slowdown in investment could have far-reaching implications for our continent's startup ecosystem. African entrepreneurs need capital to grow and compete globally, and a decline in investors will only make it harder for them to access much-needed funding.
Record-Low Investments in January 2026
Following the decline in active investors, Nairametrics reported that in January 2026, African startups secured a meager $174 million in funding, a record low. This reduction in investment is concerning, especially considering the potential and innovation within the African startup landscape. If investments continue to decline, it could hinder the growth of our continent's digital economy.
The Widening Gender Funding Gap
Furthermore, The Guardian Nigeria News shed light on the widening gender funding gap in the sector. As our continent's startup ecosystem grows, it is essential that we ensure equal access to funding for all entrepreneurs, regardless of gender. African women face numerous challenges when seeking funding, and this discrepancy must be addressed to ensure our digital economy remains inclusive and vibrant.
Ranking Africa's Most Active Tech Startup Investors
Launch Base Africa recently ranked the 100 most active tech startup investors in Africa, highlighting the efforts of investors like TLcom and Partech, which continue to support our continent's entrepreneurs. However, given the decline in investor numbers and investments, it is crucial that we encourage more investors to join the ranks and support African startups.
Building Africa's Tech Future
Despite these challenges, our continent's tech sector remains full of promise. To overcome these hurdles, we must work together to create a more inclusive and vibrant ecosystem. With the right support, African entrepreneurs can continue to innovate and drive the continent's digital economy forward, creating jobs, opportunities, and a brighter future for generations to come.
