Article
Grants are a quarter of African startup deals but about 1% of the money
Debt makes up 12% of African startup deals but a third of the money raised since 2024, as founders mix grants, debt and equity.
By Propel Africa · 2026-10-19
Grants make up nearly a quarter of African startup deals but only about 1% of the money raised, according to Propel Africa's records of 1,490 deals from January 2024 to August 2026, worth $6.9 billion in announced funding.
Debt is a third of the money
About 64% of deals were equity rounds, 24% were grants and 12% were debt. By value, equity made up 64% of the money and debt 34%.
The median debt deal was about $4 million, against $1.5 million for equity rounds and about $100,000 for grants. Fintech, energy, logistics and agriculture companies took the most debt, often to finance assets such as electric motorbikes and solar systems, or loans to customers.
Mixing the four
Many companies combine them. GoCab in Côte d'Ivoire raised $15 million in seed equity alongside $30 million in debt in February, and Rana Energy in Nigeria paired $500,000 of equity with a $2.5 million local-currency debt facility.
Learn more
How does each kind of funding work, and which fits your company? Our guide to grants, debt, equity and mezzanine explains what each one costs you and when it makes sense.