Finance

African Tech Startup M&A Activity Grows 34% in 2024 (Report)

African Tech Startup M&A Activity Grows 34% in 2024 (Report)
Monday, 17 February 2025 13:17

The report highlights that, in today’s climate of a cooling venture capital market and economic challenges across the continent, mergers and acquisitions, along with geographic expansion, have become key strategies for African startups to sustain their growth and remain viable.

Africa’s tech sector saw a wave of mergers and acquisitions (M&A) in 2024 as startups struggled to secure funding, pushing them to join forces for survival and growth. A report by TechCabal Insights, released on February 13, highlights this trend, showing that 39 M&A deals took place last year—a 34% jump from 2023.

Image 1 M

Startups in Africa often find it easier to raise seed funding, but scaling—reaching revenues of $10 million to $50 million—requires more than just capital. With investors pulling back and foreign funds focusing on their home markets, many African startups opted to merge, shortening the path to sustainable growth.

By region, Southern Africa saw the highest number of acquisitions, with 16 startups absorbed by competitors, followed by West Africa (10), East Africa (7), and North Africa (4). Two African startups based outside the continent were also acquired.

The biggest deal of the year was finalized in August 2024, when Kenyan startup Wasoko merged with Egypt’s MaxAB, creating a major player in Africa’s B2B e-commerce market.

Sector-wise, fintech dominated with 13 M&A deals, followed by Software as a Service (SaaS) with 7, and e-commerce with 3.

Image 2 M

Beyond M&A, startups also expanded their footprint across Africa and beyond. The report recorded 38 geographic expansion moves in 2024, more than double the 16 seen in 2023. Nigerian startups led this trend, with 16 expanding internationally to counter economic challenges such as currency devaluation, inflation, and weakened purchasing power.

East Africa was the top target for expansion (13 moves), followed by Southern Africa (5) and North Africa (4). Nine African startups expanded beyond the continent, while three entered multiple African regions.

Image 3 M

Despite these growth efforts, African startups faced financial pressure. In 2024, 1,819 employees lost their jobs due to bankruptcies or cost-cutting measures. The closure of 12 startups, including Kenya’s Copia Global (which alone laid off 1,060 workers), accounted for most of these job losses.

Funding also declined. African startups raised $2.21 billion across 488 deals in 2024, down from $2.86 billion in 2023. While startups in 25 African countries secured investments, Nigeria, Kenya, Egypt, and South Africa accounted for 83.27% of total funding.

Looking ahead, TechCabal Insights expects M&A activity and international expansion to accelerate in 2025, alongside a rebound in funding. However, global economic uncertainty—especially with Donald Trump’s return to the White House—could influence investment trends.

On the same topic
EBRD, EU, GCF, and Canada plan €65 mln ($77 mln) green loan for Crédit du Maroc. Funds to support clean energy, water treatment, and sustainable...
World Bank projects Ivory Coast could achieve 7-8% average annual growth with fiscal mobilization above 15% of GDP. Ivory Coast's tax revenue...
• NSIF denies rumors of interest in buying Chococam, saying it is focused on other projects.• Cadyst Invest, linked to Célestin Tawamba, is rumored to...
• AXA sells 80% of AXA Crédit Morocco to Stellantis’ Fidis arm• Stellantis to offer bundled car sales, financing, and insurance• Move aligns with...
Most Read
01

From Dakar to Nairobi, Kampala to Abidjan, mobile money has become a lifeline for millions of Africa...

Africa's Boundless Future: How a simple mobile phone became a pocket bank for millions
02

• WAEMU posts 0.9% deflation in July, second month in a row• Food, hospitality prices drop; alcohol,...

WAEMU Region Records Second Straight Month of Deflation, at -0.9% in July 
03

Airtel Gabon, Moov sign deal to share telecom infrastructure Agreement aims to cut costs, boo...

Gabon’s Airtel, Moov to Share Towers Under Govt-Brokered Deal
04

Vision Invest invests $700m in Arise IIP, Africa’s largest private infrastructure deal in 202...

Saudi Arabia’s 2025 Shopping List Now Includes Industrial Parks in Africa — With a $700 Million Entry Ticket
05

Even though it remains the smallest "crypto-economy" in the world, sub-Saharan Africa shows that vir...

Sub-Saharan Africa Crypto Transactions Up 52% to $205B on Inflation, Inclusion Push
Enter your email to receive our newsletter

Ecofin Agency provides daily coverage of nine key African economic sectors: public management, finance, telecoms, agribusiness, mining, energy, transport, communication, and education.
It also designs and manages specialized media, both online and print, for African institutions and publishers.

SALES & ADVERTISING

regie@agenceecofin.com 
Tél: +41 22 301 96 11 
Mob: +41 78 699 13 72


EDITORIAL
redaction@agenceecofin.com

More information
Team
Publisher

ECOFIN AGENCY

Mediamania Sarl
Rue du Léman, 6
1201 Geneva
Switzerland

 

Ecofin Agency is a sector-focused economic news agency, founded in December 2010. Its web platform was launched in June 2011. ©Mediamania.

 
 

Please publish modules in offcanvas position.