Feature/OPED
Unlocking Growth: M&A Opportunities in African VC Space

By Philani Mzila
The past 12 months have seen a significant decline in venture capital (VC) funding in Africa. The total amount raised declined by almost 40% between July 2022 and June 2023 compared to the same period between 2021 and 2022. This sharp decline is particularly evident in the “Big Four” markets of Nigeria, Egypt, South Africa, and Kenya, with funding contracting by as much as 77% in some.
Due to these challenging market conditions, numerous startups are nearing the end of their financial runway and are struggling to secure further investment.
Founders in this situation usually face three paths:
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Survival strategy: This entails major cutbacks and slower growth. This is only feasible for some startups.
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Shutting down: This involves ending operations and returning any remaining funds to investors.
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M&A route: Opting for a merger or acquisition.
Against this backdrop, mergers and acquisitions (M&A) may present a growing opportunity for African venture-backed startups. As many companies face a contraction in funding, M&A can offer well-provisioned startups a way to enhance their offering, expand their reach, and achieve greater scale.
Key drivers of M&A activity in VC
Several strategic and financial considerations power M&A within the startup ecosystem:
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Technological or product enhancements: Businesses often use acquisitions to boost their technical prowess or enrich their product catalogue. By acquiring startups with innovative technologies or unique products, businesses enrich their product catalogue and elevate their technological capability. Strategically, this move provides companies with a twofold advantage. First, it accelerates the time-to-market for technology, sidestepping the lengthy and expensive in-house development process. Second, the acquisition grants companies a competitive edge by hopefully giving them rights to protected intellectual property. In essence, acquisitions serve as a strategic shortcut for businesses to improve their technological standing and product offerings, ensuring they remain ahead of the curve.
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Talent acquisition: By acquiring a company primarily for its talent, more mature startups can access proven capability and teams that are experienced at building a startup. This immediate integration of a proficient team with pertinent skills ensures they can seamlessly transition into projects, potentially cutting down product or business launch timelines by months. Strategically, this not only grants the acquiring company access to scarce technical expertise but also provides insight into the invaluable knowledge held by these operators.
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Expanding market share (locally and regionally): Horizontal integration allows startups to absorb competitors, amplifying the firm’s market presence and reach. Moreover, regional expansion through M&A allows startups to access new consumers, tap into local insights and leverage pre-existing distribution channels. On the other hand, through vertical integration, a startup can streamline its operations by acquiring control over its supply chain, including suppliers or distributors. Strategically, this crafts a holistic ecosystem of offerings with potential synergies and propels immediate growth in sales revenue and customer base, facilitating accelerated market penetration.
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Opportunistic or distressed asset acquisitions: These acquisitions offer valuable assets at lower costs, equipping the acquiring company with strategic leverage. This is particularly beneficial with more asset-heavy type models.
Navigating the M&A landscape
Before diving into the M&A process, founders need to conduct a thorough market mapping exercise to identify potential targets that align with their strategic or financial objectives. This involves assessing the competitive landscape, understanding the target’s value proposition, and evaluating growth potential.
Founders should consider the following factors during market mapping:
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Strategic fit and growth potential: A strong strategic fit ensures that the acquisition enhances the overall business and creates synergies. The growth trajectory and scalability of the target’s offering are also critical as they can enhance current growth by the acquirer.
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Market positioning: A startup with a unique selling proposition and a strong market presence may provide a significant advantage to the acquiring company.
The art of due diligence
Performing due diligence (DD) is critical to any M&A deal. This comprehensive review of the target company helps the acquiring company identify potential risks and opportunities linked to the transaction.
Some of the key due diligence areas are:
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Commercial DD: Founders should evaluate the target’s market position, customer base, and competitive advantage. Understand the target’s revenue streams and potential challenges in the market.
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Product DD (including growth strategies): Founders should assess the target’s products or services, their uniqueness, and how they fit into the acquirer’s product portfolio. In addition, it is important to assess the target’s growth metrics, customer acquisition strategies, and potential for future growth. Ultimately the point is to understand the factors driving or impeding growth.
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Legal and financial DD: Founders should review contracts, licences, intellectual property rights, and any legal issues that could impact the deal. In addition, it is critical to thoroughly examine the target’s financial statements, cash flow, profitability, and financial health, as well as identify any potential financial risks.
Structuring the deal
The deal structure plays a crucial role in M&A transactions. Founders should carefully consider how the deal is structured to ensure a successful outcome for both parties.
Common deal structures in the VC space include:
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Cash and/or shares: The consideration for the acquisition can be in the form of cash, equity, or a combination of both. An all-cash acquisition may result in a misalignment of long-term interests between the parties, whereas an all-share offer may be a challenge to get over the line.
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Upfront or earn-out: The payment can be made entirely upfront or partially upfront with deferred payments based on achieving certain milestones (earn-out). Earn-outs are particularly common when the target’s future performance is uncertain.
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Management incentives post-deal: To ensure a smooth integration, management teams of the acquired company may be offered incentives to stay and continue driving growth.
Bridging cultures, valuing teams
Following the deal’s closure, the integration phase involves merging two entities and aligning processes, teams, and cultures. Careful attention to cultural alignment, talent retention, communication, and synergy realisation is paramount for the success of this endeavour.
M&A can breathe fresh life into startup ecosystem
The shifting landscape of African venture capital, marked by a decline in funding, necessitates a fresh look at the role of M&A. As more startups grapple with limited resources and financial uncertainty, M&A emerges as a viable path for growth, expansion, and innovation. Whether the motivation is talent acquisition, technological enhancement, or market expansion, these deals can breathe new life into companies and fortify their position in a competitive market.
However, the path to a successful merger or acquisition is intricate and multifaceted. It’s not just about the numbers or assets — it’s about people, cultures, visions and. For startups in Africa’s “Big Four” and beyond, embracing M&A could be the transformative move that paves the way for more sustainable businesses. But as with any significant venture, the key lies in strategy, diligence, and a clear understanding of the mutual value on offer.
Philani Mzila is the Investment Manager at Founders Factory Africa
Feature/OPED
Of Mandate Group, Delta Unity Group and Delta 2027

By Jerome-Mario Utomi
The April 12, 2025, defection of members of the Delta Unity Group (DUG) to the All Progressive Congress (APC) signposts a major political shift in Delta’s politics.
Pundits believe that the Peoples Democratic Party (PDP) which presently controls the state needs a miracle to win Delta’s 2027 governorship election given the massive haemorrhage that has hit it. Essentially, the over 10,000 members of the DUG and their supporters who defected to the APC were made up of seasoned grassroots PDP chieftains.
The defectors were received by the National Chairman of the All-Progressive Congress (APC), Mr Abdullahi Umar Ganduje, Governor Monday Okpebholo of Edo State, and the Chairman of the Governing Board of the Niger Delta Development Commission (NDDC), Mr Chiedu Ebie, alongside other notable political figures in Delta State.
So far, Deltans are enamoured by the significant political shift with many describing the development as a political earthquake which was long overdue. Because of its grassroots orientation, political analysts have likened the DUG to the Mandate Group, an independent political pressure group that midwifed the election of Mr Bola Tinubu, now President, as Lagos State Governor in the late 1990s.
In the run up to the 2023 presidential election, among so many objectives, the group was primed and positioned to defend President Tinubu’s mandate and promote democracy, unity, justice, and liberty in Nigeria, mobilize support for him and Vice President Kashim Shettima’s administration, Promote Unity and Justice: Foster national unity, justice, and liberty for all Nigerians among others.
The Mandate Group which has established structures in all 36 states, with plans to launch state chapters and currently have 580,000 members in Lagos and aim to reach 40 million members nationwide within the next 12 months, targets various segments of society, including: Students, Workers, Artisans, Teachers, Fishermen, Farmers and Women.
In like manner, the DUG has emerged as a third force in Delta State politics. Although it is not a new body, it has, over the years, been quietly bestriding Delta’s political landscape for the good of the state. Call it a third force in the politics of Delta State, and you won’t be wrong because, from all ramifications, that is what DUG represents.
DUG is by no means a political party, but, as the name implies, it is a Delta State based political pressure group convened a few years ago by the selfless, foresighted and influential trio of Mr Olu-Tokunbo (Lulu) Enaboifo, Mr Chiedu Ebie and Sir Itiako (Malik) Ikpokpo.
Their aim and dream were to establish a political pressure group with an agenda to modernize Delta State and also serve as the brain box of the campaign platform of Olorogun David Edevbie, who was vying for the governorship candidate of PDP towards the 2023 gubernatorial election.
Even though the aspiration ended with the Supreme Court ruling in favour of Governor Sheriff Oborevwori of Delta State, the DUG remained a strong force that started building gradually on the dream of a modernized Delta State. DUG has an organizational structure of 17 National Executive Council members, a Board of Trustees, and Local Government Executives in all the 25 local governments in Delta State, with Ward Executives in all the wards across Delta State, DUG is deeply rooted in the grassroots of Delta State with its cell-like structures.
Prior to the 2023 election, a wing of DUG, at the Obinoba Declaration, crossed over to APC, where the APC governorship candidate, Mr Ovie Omo-Agege, described them as the intelligent wing of PDP.
The group significantly made a huge difference in the 2023 general elections in Delta State. The DUG members in the Delta North Senatorial District, at that point in time, remained with PDP and after full deliberation and strategizing, opted to support the candidature of the APC governorship candidate and all other candidates of APC, even though they had not formally left the PDP. Consequently, most of them were either suspended or cast away by PDP after the elections.
It was easy to blend and work harmoniously with the progressives due to the progressive mindset of DUG members. After the 2023 general elections in Delta State, DUG members of Ika Federal Constituency continued to align and work closely with the APC to strengthen the party and ensure that it is properly positioned to convert the Ika Federal Constituency to an APC constituency come 2027.
To the glory of God, President Tinubu found DUG’s co-founder/convener, Mr Ebie, fit to chair the Governing Board of the NDDC in 2023. This further gave the DUG more vigor to project the Renewed Hope Agenda of the progressive governance of Mr President. Following this appointment, Ika Federal Constituency became the heartbeat of DUG in Delta State, which has now radiated positively to Ndokwa/Ukwuani and Aniocha/Oshimili Federal Constituencies in Delta North.
This wave, which has led to the massive decamping of members of PDP and the Labour Party into DUG in preparation for absorption into the APC, has also witnessed the reactivation of some dormant APC ambers and the massive welcoming of previously non-partisan and newly retired civil servants into the APC, having witnessed the positive impact of the Renewed Hope Agenda of Mr. President.
Because the group was fully poised for the reconfiguration of Delta State in the progressive fold of the APC, it is therefore, not surprising to witness the humongous crowd that emptied into APC on 12th day of April, 2025 in Agbor, Ika Federal Constituency, Delta State.
Going by the above development, it is obvious that come 2027, Ika nation in particular and Deltans in general shall witness the dethronement of People’s Democratic Party, PDP, in the state and enthronement of a people focused leadership to be formed by the All Progressive Congress, APC, in line with President Bola Ahmed Tinubu’s Renewed Hope Agenda.
Utomi, a media specialist, writes from Lagos, Nigeria. He can be reached via Jeromeutomi@yahoo.com/
Feature/OPED
Piracy in Africa’s Creative Sector: How Creators Can Protect Their Content

Africa’s creative industries, from music and film to fashion, writing, and branding, are experiencing remarkable growth. However, as the sector flourishes, so do the threats posed by piracy and copyright infringement. Without proper protection, creators risk losing the value and recognition they deserve for their original work.
Copyright remains the first and most important line of defence. In many African countries, copyright protection begins automatically once a creative work, such as a song, logo, film, or design, is fixed in a tangible form. This protection can last for the creator’s lifetime, and in most cases, up to 70 years after. Yet, while automatic copyright provides a foundation, official registration strengthens legal standing and can be critical in resolving disputes.
When a creator’s work is used without permission, the violation must be addressed swiftly. Experts advise that the first step is to gather evidence—screenshots, URLS, timestamps, user details, and even data showing engagement or financial gain from the misused content. Proof of ownership, such as original files with timestamps, draft versions, or social media records of earlier uploads, is equally vital.
“Creators should always have proof of ownership ready,” says Frikkie Jonker, Director of Anti-Piracy at MultiChoice. “That could be anything from original project files to old emails or posts. It’s one of the most effective tools in enforcing your rights.”
Once evidence is collected, creators can issue takedown requests through social platforms or send formal cease-and-desist letters to website owners or hosts. Although enforcement processes differ by country, most African nations have copyright laws aligned with global standards like the U.S. DMCA. In many cases, showing credible ownership is enough to have infringing content removed.
If infringement continues or is being done at scale, such as by piracy rings or repeat offenders, creators may need to escalate the issue by reporting it to national copyright commissions or law enforcement. Efforts are also being bolstered across the continent through cooperation under agreements like the African Continental Free Trade Area (AfCFTA), with international bodies like Interpol, Afripol, and WIPO supporting cross-border enforcement.
Preventative measures are just as important. Creators are encouraged to use tools like digital watermarking and content fingerprinting to protect their work from unauthorised use online. Furthermore, smart monetisation strategies, such as YouTube’s Content ID syste,m can allow creators to earn revenue even when their content is reused without prior permission.
By understanding their rights, taking proactive steps to protect their creations, and using available technologies, African creatives can safeguard their work while continuing to build sustainable, long-term careers.
Feature/OPED
A Journey Through Policy: My Personal Experience

By Saifullahi Attahir
If there was ever anything that gave me goosebumps and immense pleasure, it was being surrounded by intellectuals and mature minds absorbing facts and figures about governance, economics, public health, policymaking, national security, and international relations. In such situations I easily lose myself, forgetting almost all other things.
Even at medical school, my best lectures were those with frequent digressions, whereby the lecturer would discuss the pathogenesis of diseases for 30 minutes and later sidetrack into discussing politics, governance, or other life issues. I always enjoyed classes led by Prof. Sagir Gumel, Dr. Murtala Abubakar, Dr. Rasheed Wemimo, Dr. Aliyu Mai Goro, and co.
During such lectures, I often observed some of my colleagues disappointment for such deviation. I rather casually show indifference, for I was eternally grateful for such discussions due to the stimulatory effect they had on my mind.
After such classes, I sometimes followed up with the lecturer, not to ask about a medical concept I did not grasp, but to ask for further explanation on policy making, project execution, budgetary expenditures, why African countries are left behind, and similar pressing issues.
In situations where I can’t catch up with the lecturer, I jotted down the questions for further deliberation.
One of the manifest feature I know about my greediness was at reading books. I can open five different books in a day. I lack such discipline to finish up one before another. I can start reading ‘Mein Kampf’ by Adolf Hitler, and halfway through 300 pages, I would pick up ‘My Life’ by Sir Ahmadu Bello, and would have to concurrently read both until the end.
I often scolded myself for such an attitude, but I can’t help myself. The only way to practice such discipline was to at least read two different books in a day. Such was a triumph in my practice of self-discipline. This was apart from my conventional medical textbooks.
To some of my friends, I was called an accidental medical doctor, but actually it was a perfect fate guided by the merciful Lord that I’m studying medicine.
For it was only medicine that makes reading books easier for you. Although time is precious in this profession, but one finds it easier to do anything you are passionate about. The daily interaction we have with people at their most vulnerable state was another psychostimulant. Seeing humans suffering from disease conditions is heartache. Some of the causes are mere ignorance, poverty, superstitions, and limited resources.
The contribution one can give couldn’t be limited to just prescribing drugs or surgical procedures that end up affecting one person. It’s much better to involve one self in to position that may bring possible change to the whole society even in form of orientation.
What also motivated me more was how I wasn’t the first to traverse this similar path. Bibliophiles were common among medical students and medical professionals.
At international level, the former Prime Minister of Malaysia, Dr. Mahathir Muhammad, was a physician.
Most of the current economic development of Malaysia was attributed to him. The South American revolutionary figure Che Guevara was a physician. Atul Gawande was an endocrinologist, health policy analyst, adviser to former President Obama, campaign volunteer to former President Bill Clinton, and adviser to USAID/WHO on health policies.
Frantz Fanon was another physician, psychiatrist, racial discrimination activist, and political writer. Dr. Zakir Naik was a renowned Islamic scholar, comparative religion expert, and physician.
At the national level, Prof. Usman Yusuf is a haematologist, former NHIS DG, and currently a political activist. Dr. Aminu Abdullahi Taura was a psychiatrist and former SSG to the Jigawa state government. Dr. Nuraddeen Muhammad was a psychiatrist and former cabinet minister to President Goodluck Jonathan.
During ward rounds and clinics, my mind often wanders to enquire not just about the diagnosis but the actual cause of the disease condition; why would a 17-year-old multiparous young lady develop peripartum cardiomyopathy (PPCM)? Why would a 5-year-old child develop severe anaemia from a mosquito bite? Why would a 25-year-old friend of mine develop chronic kidney disease, and his family would have to sell all their belongings for his treatment? Why are our Accident and Emergency units filled with road traffic accident cases? Was it bad road conditions or lack of adherence to traffic laws and orders?
Why are African countries still battling with 19th century diseases like Tuberculosis, filariasis, and malarial infections? Why issues of fighting cervical cancer and vaccination campaigns are treated with contempt in our societies? Why access to basic primary healthcare in Nigeria was still a luxury 50 years after Alma Ata declaration?
The questions are never-ending…
Answers to these questions could be found not in the conventional medical textbooks like Robbins/Cotrand, Davidson, or Sabiston. Answers to these questions are there on our faces. Answers to these questions are tied to the very fabric of our social life, our public institutions, our culture, and our life perspectives.
In order to make any significant contribution towards the betterment of this kind of society, it would be quite easier as an insider rather than an outsider. You can’t bring any positive outcome by just talking or commenting. It was rightly stated that a cat in gloves catches no mice.
The real players in a game are always better than the spectators. A player deserves accolades despite his shortcomings, frequent falls, and inability to deliver as planned theoretically. For the player has seen it all, because so many things in public life are not as they appear. It’s only when you are there that the reality becomes visible. This is the reason why many leaders who have goodwill and enjoy public support appear to have lost track or contributed insignificantly when elected or appointed into office.
But despite all these challenges, one can’t decline to do something good just because something bad might happen. The risk is worth it….
Attahir wrote from Federal University Dutse
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