General
The Coming of Age of the African Startup Ecosystem
While total disclosed funding fell to $2.2 billion – down 25% from the $2.9 billion raised in 2023 – the numbers alone don’t tell the full story. Beneath the slowdown lies a deeper transformation: a shift from chasing valuation milestones to building operationally resilient businesses that solve fundamental problems.
The funding contraction mirrored global trends, as higher interest rates and tighter capital allocation reshaped venture capital markets. Yet Africa’s downturn was not purely negative. In the second half of 2024, the ecosystem saw renewed momentum from large-scale rounds, notably from Moniepoint (Nigeria) and TymeBank (South Africa). Unlike earlier unicorns that focused on aggressive user acquisition, these companies built their success on hybrid business models, blending digital technology with physical infrastructure.
They were not alone. Fintech players like OPay (Nigeria), Wave Mobile Money (Senegal), and MNT-Halan (Egypt) have also demonstrated that control of both the digital layer and key offline touchpoints (agent networks, payment terminals, or physical kiosks) creates defensible advantages in African markets.

Why Operational-First Wins in Africa
The African market’s structural realities (fragmented infrastructure, cash-heavy economies, and regulatory complexity) make purely digital solutions difficult to scale sustainably.
In Kenya, Buupass tackled bus and rail ticketing by first digitising operators’ backend systems, eliminating paper-based inefficiencies and cash leakages before rolling out consumer-facing booking options.
To tackle this, they developed a Bus Management System (BMS) that digitised inventory, sales, and fleet tracking, enabling operators to modernize their backend systems. They also dealt with fragmented, offline-heavy travel ecosystems by forming partnerships with major players like Safaricom and M-Pesa, providing access to reliable hosting, digital payments, and trust validation, key to onboarding high-value clients like Kenya Railways.
Today, BuuPass processes approximately 12,000 transactions daily and has established partnerships with major transportation providers across Kenya, Uganda, Tanzania, Rwanda, and South Africa. Their growth came not from viral marketing or user acquisition funnels, but from solving fundamental operational challenges for transport operators.
In West Africa, Logidoo approached cross-border trade by introducing consolidated cargo solutions through their relationship, cutting average transit times by roughly 40% along key China–West Africa and Europe–West Africa corridors.
This improvement in shipping speed and cost-efficiency for clients demonstrated how operational excellence and better physical logistics design can unlock scale across cross-border trade.
Similar strategies are emerging in other sectors. These companies prove that solving operational bottlenecks can be more powerful than just building flashy products.
Funding Shifts by Sector and Geography
According to Africa: The Big Deal, fintech remained dominant in 2024, attracting about 47% of total startup funding, but the fastest-growing slices of investment went to logistics, mobility, and healthtech. Logistics startups, for instance, secured over $400 million across disclosed equity and debt rounds, reflecting investor appetite for infrastructure-heavy models.
Geographically, Nigeria maintained its lead in funding volume, followed by Kenya, Egypt, and South Africa. However, emerging hotspots like Morocco, Senegal, and Tanzania posted year-on-year increases despite the continent-wide slowdown, most of these driven by targeted sector plays in logistics, mobility, and energy.
The market correction exposed common weaknesses. Startups that scaled aggressively without building sustainable revenue streams struggled to survive the funding winter. A recurring failure pattern emerged: expanding to multiple markets before achieving operational stability in one, burning through capital on marketing rather than infrastructure, and relying on vanity metrics (downloads, active users) over unit economics.
According to Hiruy Amanuel, Managing Director at Gullit VC, the ecosystem has developed its own success indicators, “I’ve learnt to be wary when early-stage startups rush to scale without focus or financial discipline. That kind of premature expansion, often without the infrastructure to support it, can be fatal. We’ve seen too many founders chase growth metrics or investor hype, only to fall apart because the fundamentals weren’t there.”
Beyond Fintech
Transport and logistics players are building their own fleets. Healthcare startups are embedding themselves into pharmacy and clinic networks. Agri-tech companies are setting up physical aggregation centers to secure supply chains. Even e-commerce platforms are moving into warehousing and last-mile delivery.
This evolution signals something deeper: in African markets, technology works best when it complements, not replaces, the physical systems people already use.
Looking Ahead…
If 2015–2020 was Africa’s “unicorn era,” 2024–2027 is shaping up to be its “infrastructure era.” The next wave of winners will be companies that master operational execution while using technology to enhance reliability, transparency, and scale.
The result is an ecosystem that’s becoming less dependent on external validation and more focused on creating lasting value within African markets. These trends indicate a maturing landscape that prioritizes solving real problems over chasing global tech trends.
The success of companies like BuuPass, Logidoo, Moniepoint, and TymeBank provides a blueprint for the next generation of African startups. The winning formula combines technological sophistication with deep operational expertise, creating businesses that are both scalable and defensible.
For founders, this means longer timelines to profitability but stronger defensibility once scale is achieved. For investors, it means assessing physical assets, partnerships, and local execution capabilities with as much rigor as product and code.
Africa’s startup ecosystem is no longer solely defined by valuation milestones. Its coming of age is marked by companies that solve real problems, create lasting economic value, and build the scaffolding for future innovation.
And that, more than any unicorn headline, may prove to be the measure that matters most.
General
Court Grants N500m Bail To Malami, Wife, Son in Money Laundering Case
By Adedapo Adesanya
Justice Emeka Nwite of the Federal High Court in Abuja has granted the former Attorney General (AGF) and Minister of Justice, Abubakar Malami and two others, bail in the sum of N500 million with two sureties.
The sureties, according to the judge, must have landed property in Asokoro, Maitama, or Gwarinpa.
The documents of the properties are to be verified by the deputy chief registrar of the court while the sureties are also to depose to affidavit of means.
Mr Malami was also ordered to deposit his travelling documents with the court and must not travel out of the country without the permission of the court.
The former AGF and his sureties were also ordered to deposit their two recent passport photograph with the court.
Meanwhile, Mr Malami has been ordered to be remanded in Kuje prison pending his perfection of the bail conditions.
Justice Nwite subsequently fixed February 17 for commencement of trial of the corruption charges.
The same bail were extended to Mr Malami’s son, Mr Abdulaziz Malami, and a listed employee of Rahamaniyya Properties Limited, Mrs Asabe Bashir, who is also believed to be Mr Malami’s wife.
The Economic and Financial Crimes Commission (EFCC) filed a 16-count alleged money laundering charge against Malami, his son and his wife.
In one of the counts, the anti-graft agency alleged that Mr Malami and his son procured Metropolitan Auto Tech Limited to conceal the unlawful origin of the sum of N1,014,848,500.00 in a Sterling Bank Plc account, when they reasonably ought to have known that the sum constituted proceeds of unlawful activities, thereby committing an offence contrary to Section 21(c) of the Money Laundering (Prevention and Prohibition) Act, 2022, and punishable under Section 18(3) of the same Act.
It also said they conspired to disguise the unlawful origin of the aggregate sum of N1,049,173,926.13 paid through the Union Bank Plc account of Meethaq Hotels Limited, Jabi, between November 2022 and September 2024, contrary to Section 21 of the Money Laundering (Prevention and Prohibition) Act, 2022, and punishable under Sections 18(2)(a) and 18(3) of the same Act.
Another count alleged that between November 2022 and October 2025, the duo indirectly took control of the aggregate sum of N1,362,887,872.96 paid through the Union Bank Plc savings account of Meethaq Hotels Limited, when they reasonably ought to have known that the funds constituted proceeds of unlawful activities, contrary to Section 18(2)(d) and punishable under Section 18(3) of the Money Laundering (Prevention and Prohibition) Act, 2022.
General
NIMASA Launches Zero Tolerance Campaign for Nigeria’s Maritime Sector
By Adedapo Adesanya
The Nigerian Maritime Administration and Safety Agency (NIMASA) has commenced special operational enforcement code named Operation Zero Tolerance for Non-Compliance in the Nigerian maritime domain.
The directive was issued through a Marine Notice, pursuant to the agency’s statutory mandate under the NIMASA Act 2007, the Coastal and Inland Shipping (Cabotage) Act 2003, the Merchant Shipping Act 2007, and other applicable regulations.
Under this operation, all Ship/Vessel Owners, Operators, Managers, International and National Oil Companies, Masters and Officers of Merchant Ships, Shipping Companies, Shipping Agents, Charterers, Offshore Installations and Platforms Operators, Vessel Operators at the Free Trade Zones (FTZ), and Maritime Stakeholders operating or intending to operate within Nigerian waters are required to ensure full compliance with statutory requirements contained in existing maritime laws and regulations.
These include proper vessel registration, valid certifications, updated ownership documentation, adherence to Cabotage provisions relating to vessel ownership, registration, manning, and build.
The notice also emphasised the importance of timely payment and remittance of all statutory levies and fees as prescribed by law.
As part of the enforcement process, NIMASA will conduct random and targeted vessel inspections, verify documentation against its databases, and carry out physical and documentary compliance assessments at ports, terminals, and offshore locations. Operators will also be required to present proof of payment of all applicable levies and fees upon request.
To allow stakeholders the opportunity to regularize their operations, NIMASA has granted a thirty (30) day window from January 5, 2026 for a self-audit and voluntary compliance.
The agency warned that failure to comply after the expiration of the grace period will attract enforcement actions, including vessel detention, monetary penalties, withdrawal of waivers or operational licences, and denial of port clearance until full compliance is achieved.
The Director General of NIMASA, Mr Dayo Mobereola has assured all stakeholders of the Agency’s commitment to promoting indigenous shipping development, enhancing maritime safety and security, protecting the marine environment, and ensuring strict compliance with Nigeria’s maritime laws.
“We therefore urge all stakeholders to do their part so that together, we can build on the gains of previous regulatory achievements, which is enhanced safety, a secure maritime environment and sustainable utilisation of our marine resources,” the DG added.
General
US Drone Firm, Tompolo’s Tantita to Curb Oil Theft in Nigeria
By Adedapo Adesanya
Nigeria’s private security firm, Tantita Security Services Limited (TSSL), has entered into an agreement with a United States–based Textron Systems for the supply of unmanned aerial vehicles (drones) in a move aimed at curbing crude oil theft in the country.
Textron Systems said the drones would support security operations around Nigeria’s oil and gas infrastructure, which has continued to face threats from crude oil theft, vandalism and sabotage.
The deal also includes provisions for training and the possible acquisition of additional aircraft as Tantita expands its operations, building on a previous US Foreign Military Sales delivery of Aerosonde drone systems to Nigeria.
The Aerosonde Mk. 4.7 is designed to operate without a runway, using a hybrid quadrotor system for vertical takeoff and landing before transitioning to fixed-wing flight. The system can carry multiple payloads and conduct extended surveillance missions.
Speaking on the development, Executive Director, Operations and Technical, Mr Waredi Enisour, said Tantita officials were in the United States to inspect the drone operations and understudy the associated technical processes.
Mr Enisour added that with the latest technological acquisitions by Tantita, incidents of crude oil theft are expected to decline significantly, as the drones will provide extensive surveillance coverage across the Niger Delta region.
He disclosed that Tanttia is the first private security firm in Nigeria to acquire the Aerosonde UAV which hosts ISR capabilities.
Tantita is a company owned by a former militant leader, Mr Government Ekpemupolo, commonly known as Tompolo. Over the years, the federal government has collaborated with the former militant leader for the protection of critical oil and gas infrastructure and securing permanent peace in the oil-rich Niger Delta Region.
Oil and gas remains Nigeria’s economic mainstay, contributing nearly 90 per cent of forex earnings and 70 per cent of national revenue. However, constant oil theft over the years has made it impossible for the country to hit its peak production of 2.5 million barrels recorded in 2005, although improvement has occurred in recent years, there have been more hands-on approach.
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