In January 2026, start-ups across Africa raised a total of $174 million through funding deals valued at $100,000 and higher, despite experiencing a marked decrease in deal activity. This data was provided by Africa: The Big Deal, a platform that tracks developments within the African start-up ecosystem. When compared to previous years, this amount represents a decline from January 2025's $276 million and falls below the monthly average of $263 million documented over the last year. However, it does show an increase when contrasted with the funding levels from January 2023 ($106 million) and January 2024 ($85 million).

A worrying trend is highlighted in the report, noting that only 26 start-ups secured funding of at least $100,000 in January 2026, marking a concern for the funding environment. This number is slightly above half of the monthly average from the previous year and reflects a significant downturn compared to January 2024. This reduction in the number of deals represents the lowest monthly tally on record since at least 2020, signaling potential challenges for entrepreneurs seeking investment in the region.

The report indicates a broader understanding of the African start-up ecosystem's current challenges amidst fluctuating funding landscapes. Stakeholders in the industry may need to explore innovative approaches and partnerships to rejuvenate interest and investment in African start-ups, especially as the sharp decline in deal count may hinder growth prospects and could impact the entrepreneurial landscape for years to come.