Despite a challenging year for some, our tech ecosystem continues to demonstrate resilience and attract investment. Data released today, January 23, 2026, from Techloy indicates ongoing startup funding activity across Africa and the Middle East in Week 4 of the year. This positive signal arrives as we grapple with news of significant losses stemming from startup shutdowns, a trend highlighted by a recent Businessday NG report. The contrast underscores the dynamic nature of innovation on our continent.

Funding Trends in Early 2026

Techloy’s reporting shows continued investor interest in African and Middle Eastern startups, though specific details regarding the deals remain undisclosed. This suggests that despite global economic headwinds, opportunities for growth and disruption are still being recognized by venture capital firms. We’ve seen similar patterns in previous years, with investors like TLcom and Partech consistently backing promising ventures, particularly in fintech and agritech.

$52 Million Erased by 2025 Shutdowns

However, the picture isn’t entirely bright. Businessday NG reported a substantial jump in startup shutdowns throughout 2025, resulting in the loss of $52 million in investor capital. This figure represents a 50% increase in closures compared to the previous year, signaling increased pressure on young companies to achieve profitability and sustainable growth. The report doesn’t specify which sectors were most affected, but it highlights a critical need for stronger support systems for our entrepreneurs.

The Importance of Sustainable Models

The $52 million loss serves as a stark reminder that funding is only one piece of the puzzle. Building truly successful businesses requires robust business models, effective execution, and a deep understanding of the local market. We’ve seen examples like M-Pesa in Kenya, which achieved scale and sustainability through a focus on financial inclusion and a strong agent network. Similarly, Flutterwave’s pan-African payment infrastructure demonstrates the power of solving a continent-wide problem.

Building Africa's Tech Future Through Regional Collaboration

Despite the setbacks, the continued flow of funding, as indicated by Techloy, offers a reason for optimism. We anticipate increased collaboration between startups across different African nations, leveraging each other’s strengths and expanding their reach. Investors like Norrsken are increasingly focused on backing ventures with a strong social impact, aligning with the continent’s development goals. This focus, combined with a growing pool of local talent, positions Africa for continued tech innovation and economic growth in the years to come.