African Tech in 2024: Major Themes That Shaped the Year

From billion-dollar milestones to market shakeups, here are some of the biggest that emerged from Africa’s tech and VC landscape in 2024.

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2024 was one of contrasts for Africa’s tech ecosystem. Startups faced significant hurdles, from stricter regulatory scrutiny to reduced access to venture capital funding, a trend mirrored globally due to rising interest rates and economic uncertainty. However, these challenges also brought out the resilience and creativity of African entrepreneurs, who continued to push boundaries and create solutions for the continent’s unique problems.

This year saw groundbreaking funding rounds, major mergers, and an influx of local innovations that catered to underserved communities. While some startups thrived, others struggled to stay afloat in an increasingly competitive environment. The emergence of local alternatives to global giants, coupled with a steady stream of acquisitions, highlighted the maturing of Africa’s tech landscape.

In this article, we explore the biggest themes that shaped African tech in 2024, showcasing how the ecosystem navigated adversity and celebrated milestones. From new unicorns to innovative solutions in agritech and fintech, here’s what defined the year for African startups and investors.

1. Mercury Leaves African Startups in a Tough Spot

A major blow for startups came when Mercury, a U.S.-based digital bank, stopped offering its services in 13 African countries. Mercury had become a lifeline for many startups, providing access to U.S. dollar accounts for global transactions. This move disrupted operations for numerous businesses relying on cross-border payments.

Mercury’s decision was tied to compliance issues stemming from regulatory scrutiny in the U.S. and concerns about anti-money laundering laws in certain African countries. However, local fintechs like Raenest, Verto, and Leatherback stepped in to fill the gap. These homegrown solutions softened the blow and highlighted the potential for Africa-based financial services to meet local needs.

2. Crypto Crackdown in Nigeria

Nigeria’s regulatory environment for cryptocurrency became even more challenging this year. Binance, the world’s largest cryptocurrency exchange, was in the crosshairs of Nigerian authorities. Accusations of tax evasion and market manipulation led to significant scrutiny, and some of Binance’s executives were detained during investigations.

While some charges were dropped, the saga spotlighted the increasing regulatory pressures facing crypto companies operating in Africa. Despite these hurdles, Binance remained operational, and its challenges highlighted the need for crypto platforms to maintain strict compliance while navigating the region’s evolving regulatory landscape.

3. Moniepoint and TymeBank Join the Unicorn Club

Two fintech giants reached unicorn status this year, signaling continued growth in Africa’s financial technology sector. Moniepoint, a Nigerian fintech, raised $110 million in a Series C funding round, reaching a $1 billion valuation. The company processes $17 billion in monthly transactions, offering businesses tools for digital payments, banking, and credit.

Similarly, South Africa’s TymeBank secured $250 million in Series D funding, boosting its valuation to $1.5 billion. Known for its hybrid digital banking model that combines online services with physical touchpoints, TymeBank has expanded beyond Africa, operating in the Philippines and targeting other emerging markets.

4. Wasoko and MaxAB: A Landmark Merger

In one of the year’s biggest mergers, B2B e-commerce giants Wasoko and MaxAB joined forces. This consolidation created Africa’s largest B2B platform, serving over 450,000 merchants across East and North Africa. Wasoko, formerly Sokowatch, brought its expertise in East African markets, while MaxAB contributed its strong presence in North Africa.

The merger aimed to streamline supply chains, improve access to goods for informal retailers, and create efficiencies in logistics. While navigating regulatory challenges and internal restructuring, the newly combined entity emerged as a powerhouse in Africa’s e-commerce landscape.

5. Uber Makes First Investment in Africa via Partner Moove

In a significant milestone, Uber made its first investment in Africa by participating in Moove’s $100 million Series B round. Moove, a mobility fintech startup, provides vehicle financing for ride-hailing drivers and logistics operators. The partnership between Moove and Uber aligns with Uber’s sustainability goals, as Moove plans to introduce 20,000 electric vehicles (EVs) to Uber’s fleet.

This investment highlights how global companies are betting on African startups to address local challenges like access to affordable transportation. Moove’s innovative model, which uses alternative credit scoring, is helping drivers gain access to vehicles, creating economic opportunities across the continent.

6. Acquisitions Signal Ecosystem Maturity

2024 saw a surge in acquisitions across African tech, with over 25 recorded deals. Fintech companies like Paystack and Flutterwave remained at the forefront, attracting interest from larger players. Mobility and e-commerce sectors also saw significant consolidation.

These acquisitions not only provided startups with the resources to scale but also reflected the ecosystem’s growing maturity. By recycling capital and creating liquidity for investors, these deals are fostering a virtuous cycle of innovation and investment in African tech.

7. Not All Startups Survived

While there were many success stories, 2024 was also a challenging year for some startups. Companies like Gro Intelligence, despite their early promise, shut down operations due to financial mismanagement, lack of product-market fit, or internal conflicts.

These closures serve as a reminder of how difficult it is to build and sustain a startup, particularly in emerging markets. Failure is a natural part of any ecosystem, and the lessons from these closures will hopefully inspire better planning, execution, and resilience among future startups.

8. Local Innovation Tackles Africa’s Unique Challenges

African startups continued to stand out for their ability to create solutions tailored to local needs. Companies like SunCulture and Pula made significant strides in agritech, helping farmers deal with climate-related challenges.

SunCulture expanded its solar-powered irrigation systems, while Pula provided climate-smart insurance products to protect smallholder farmers from unpredictable weather. These innovations not only address critical issues but also attract global investors looking for impactful solutions. The success of such startups underscores the power of technology to drive meaningful change in African communities.

The Tech Scene Looks Ahead

As 2024 wraps up, the African tech sector is focused on building for the future. Startups are finding ways to adapt to tough economic conditions by doubling down on solving real problems. Investors are increasingly interested in businesses that show clear value, from financial inclusion to climate resilience.

The coming year holds promise as startups continue to innovate, collaborate, and scale. While challenges remain, the resilience and creativity of Africa’s tech ecosystem ensure that the continent will remain a key player in the global tech conversation.