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
Alleged Wiretapping: El-Rufai to File No-Case Submission as DSS Closes Case
By Adedapo Adesanya
The Department of State Services (DSS) has closed its case against former Kaduna State Governor, Mr Nasir El-Rufai, in the ongoing alleged wiretapping trial before the Federal High Court in Abuja.
At the resumed sitting on Tuesday, prosecuting counsel, Mr Oluwole Aladedoye, informed the court that the prosecution would not be calling further witnesses in the matter, prompting the formal closure of the DSS case.
Following the development, defence counsel, Mr Paul Erokoro, told the court that the defence intends to file a no-case submission, arguing that the prosecution has failed to establish sufficient evidence against the former governor.
The defence subsequently sought two weeks to file the application, while the prosecution requested two weeks to respond.
The defence also applied for a variation of some of the bail conditions earlier granted to El-Rufai, describing them as stringent and difficult to meet.
They argued that the bail terms were too stringent, particularly the requirements for level 17 civil servants with properties in Maitama or Asokoro, as well as verification and attestation letters from the Kaduna state traditional council.
However, the prosecution opposed the request, insisting that qualified public officers who meet the conditions exist and urging the court to refuse the application.
Delivering the ruling, Justice Joyce Abdulmalik declined the request to vary the bail conditions, ruling that there are civil servants who own properties at the said location.
The court, however, adjourned to September 22 for the filing of the no-case submission and continuation of the trial.
In February, the federal government filed a three-count charge against the former governor of Kaduna State over an alleged interception of communications belonging to Nigeria’s National Security Adviser (NSA), Mr Nuhu Ribadu.
In a television interview, he confessed that he and other unnamed individuals listened to conversations from Mr Ribadu’s phone after it was tapped by a third party. While acknowledging that such interception is technically unlawful, he argued that illegal surveillance was not unusual.
However, the FG, through the secret police, filed charges against Mr El-Rufai at the Federal High Court in Abuja.
General
LSWMO Seals Lekki Peninsula I-Fitness Gym Centre
By Modupe Gbadeyanka
The I-Fitness Gym centre around Jakande Roundabout, Lekki Peninsula, Eti-Osa, Lagos, has been sealed by the Lagos State government.
The facility was closed on Tuesday, June 23, 2026, by officials of the Lagos State Wastewater Management Office (LSWMO).
The gym centre was accused of indiscriminately discharging raw sewage into public drains via a pipe, thereby causing public nuisance and environmental pollution as well as endangering human health.
Announcing the closure of the premises of the organisation, the Lagos Commissioner for Environment and Water Resources, Mr Tokunbo Wahab, reiterated the need for the public to adhere strictly to proper wastewater management practices.
He emphasised that any individual or organisation found contravening environmental regulations will be meted out with appropriate sanctions and possible prosecution in accordance with the enabling laws.
The Commissioner has come under fire lately because of the poor waste management system in the metropolis, causing the state to look dirty.
A chief of the African Democratic Congress (ADC), Mr Gbadebo Rhodes-Vivour, called for his resignation over the issue.
In a related development, Mr Wahab has clarified that the state government has given members of the National Union of Road Transport Workers (NURTW) the authority to arrest environmental violators.
In a statement, he explained that contrary to the misinformation being circulated by some bloggers and commentators, the recent engagement between the Lagos State Government and transport unions across the State is not intended to replace the statutory responsibilities of the Lagos State Environmental Sanitation Corps (LAGESC). LAGESC, in collaboration with the Lagos State Environmental and Special Offences Task Force, remains the duly empowered environmental enforcement arm of the Lagos State Ministry of the Environment and Water Resources.
“As we are all aware, several environmental challenges persist within parks, garages, and the public transportation ecosystem, including illegal trading activities and the indiscriminate disposal of refuse on road medians and within transport facilities. The State Government’s engagement with transport unions is aimed at fostering collaboration, promoting shared responsibility, and ensuring improved cleanliness and proper waste management within their respective parks and garages.
“This partnership does not in any way diminish, transfer, or replace the enforcement responsibilities of LAGESC and the Task Force. Rather, it is a complementary initiative designed to strengthen environmental compliance, sanitation standards, and stakeholder participation in maintaining a cleaner environment across the State.
“We therefore wish to reassure all Lagosians that environmental cleanliness remains a top priority of the Lagos State Government. We will continue to engage relevant stakeholders and partners in our collective effort to build a cleaner, healthier, and more sustainable Lagos,” he stated.
General
Nigeria’s Mobile Subscribers Grow 15.1 million Year-on-Year
By Adedapo Adesanya
Active mobile subscriptions in Nigeria increased by 15.1 million or 8.7 per cent year-on-year to 188.0 million in April 2026 from 172.9 million in April 2025, according to the latest data from the Nigerian Communications Commission (NCC).
On a month-on-month (MoM) basis, subscriptions grew by 2.3 million or 1.2 per cent from 185.7 million in March 2026, reflecting continued momentum in subscriber acquisition across the telecommunications sector.
The sustained growth in mobile subscriptions is largely attributable to the easing of key regulatory and operational challenges that previously constrained industry expansion.
Notably, improved compliance with SIM registration and National Identification Number (NIN) linkage requirements has facilitated the reactivation of previously deactivated SIM cards, contributing significantly to the increase in active subscriptions.
Furthermore, enhanced customer onboarding processes and more efficient SIM reactivation procedures implemented by network operators have further supported subscriber growth.
MTN Nigeria maintained its market leadership position, recording a net subscriber addition of 632,209, bringing its total to 96.4 million in April 2026, up from 95.8 million in March.
Trailing was Airtel Nigeria, which delivered the strongest growth among the major operators, adding approximately 1.0 million subscribers, bringing its customer base to 64.7 million from 63.6 million in the preceding month.
Globacom also sustained its recovery momentum, with its subscriber base expanding by 538,704 to 23.2 million from 22.6 million. Meanwhile, 9mobile (T2) recorded modest growth, increasing its subscriber base to 3.54 million from 3.48 million.
There are expectations that subscriber growth will continue as more Nigerians seek favourable rates when it comes to data and voice, while higher smartphone penetration, ongoing investments in 4G and 5G network infrastructure, and expanding broadband coverage continue.
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