- Over 85% of African business angels favor impact-focused investing
- Agritech has emerged as a leading sector for angel investors across the continent
- Nigeria, Egypt, Kenya and South Africa still dominate deal activity
According to a report published on April 30, 2026 by the African Business Angel Network (ABAN) in partnership with research firm Britter Bridges, about 85.3% of business angels operating in Africa prefer to invest in startups that create economic and social impact.
Based on a survey of 62 business angels and business angel network executives, the report found that 70.6% prioritize investments that stimulate economic growth, while 14.7% focus on social impact areas such as youth and women empowerment.
report, title ABAN Angel Investment Survey 2025It also indicates that there are now more than 75 business angel networks and more than 5,000 individual business angels in Africa.
Over the past decade, these investors participated in more than 620 disclosed deals, accounting for approximately 7% of investment activity in innovative startups.
Individual business messengers are typically active in smaller ticket sizes, while networks focus on larger transactions.
Over 90% of individual business angels invest less than $25,000 per deal. By comparison, only 60% of angel networks operate at that level.
More than 25% of these networks report investments of more than $50,000 per transaction, while 8% invest more than $100,000.
Business angels primarily help bridge the financing gap faced by early-stage companies, whose untested business models often make them less attractive to risk-averse investors.
Apart from financing, they also provide operational support to entrepreneurs.
For individual business angels, the most common forms of support include business advice (34%), mentorship (26%), and access to business networks (25%).
Angel networks often provide founder mentorship (38%), networking opportunities (22%), and investor-readiness assistance (20%).
80% of activity is concentrated in four countries
About 32% of individual and network-based business angels target high-growth startups in multiple sectors.
Among investors with sector preferences, agritech is the top choice for networks (20%) and the second most preferred sector for individual investors (13%).
The growing interest in high-impact sectors has also led to the emergence of specialized investor groups such as the Climate Smart Agriculture Network.
The report further notes that business angel networks now operate in 37 African countries, with leading syndicates including HoaQ, AUC Angels, Alexandria Business Angel Network and Nairobi Business Angel Network (NaiBAN) helping to expand angel investment across the continent.
However, geographic concentration remains strong. About 80% of transactions are concentrated in Africa's four leading startup ecosystems – Nigeria, Egypt, Kenya and South Africa – commonly referred to as the “Big Four”.
These ecosystems benefit from strong structural and macroeconomic advantages, including a higher concentration of growth-stage companies, stronger private capital pools, and more mature entrepreneurial networks.
Nevertheless, business angel activity has expanded beyond the Big Four over the past five years, with investor interest increasing in countries such as Zambia, Senegal, Ghana, Uganda and Tanzania.
Business angels themselves come from diverse backgrounds. 37% of investors are women, while 33% are African expatriates.
About 94% of startups are founders, business executives or professional investors.
The report says this growing diversity broadens the funding sources, specialized expertise and global networks available to African startups.
Yet several external factors are impacting investment activity, including lack of liquidity, currency devaluation and media coverage about the difficulties faced by African startups.
About 29% of investors surveyed said they have either suspended or reduced investments, while 41% said they continue investing but with caution. Another 29% reported no impact on their investment decisions.
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