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
TCN Confirms Destruction of Six Transmission Towers in Nasarawa
By Adedapo Adesanya
The Transmission Company of Nigeria (TCN) has confirmed the destruction of six transmission towers along the Apir–Lafia 330kV line in Nasarawa State, causing significant disruption to electricity supply in parts of the country.
In a statement issued on Wednesday, TCN spokesperson, Mrs Ndidi Mbah, said the incident occurred on May 30 at about 1:15 a.m. during a heavy downpour.
She explained that the transmission line initially tripped, prompting operators to attempt a trial reclosure of Line II at about 2:08 a.m., but the effort failed.
A subsequent inspection of the transmission corridor, however, revealed extensive damage to key components of towers T125 to T130, confirming that the infrastructure had been vandalised.
“The tripping of the lines prompted a physical line trace to determine the fault, which revealed damage to critical components of towers T125 to T130, confirming vandalism on the affected sections of the transmission corridor,” Mbah said.
The incident has forced both Apir–Lafia 330kV Transmission Lines I and II out of service pending the reconstruction of the damaged towers.
TCN said its engineers have been deployed to the site to assess the extent of the damage and determine the materials required to restore normal transmission along the corridor.
As an interim measure, the Lafia 330kV Transmission Station is being supplied through an alternative line to minimise the impact on electricity consumers within the franchise areas of Abuja Electricity Distribution Company (AEDC) and Jos Electricity Distribution Company (JEDC).
The company condemned the persistent vandalism of power infrastructure, warning that such acts undermine investments in the electricity sector and threaten the stability of the national grid.
It also urged residents and host communities to remain vigilant and report suspicious activities around transmission installations to security agencies or the nearest TCN office.
TCN stressed that safeguarding critical national infrastructure requires collective responsibility to ensure a reliable and uninterrupted electricity supply nationwide.
General
IFC, NGX Group, LCCI Unveil Nigeria Gender Country Programme
By Aduragbemi Omiyale
A Nigeria Gender Country Programme (NGCP) to advance private sector action on gender equality and inclusive economic growth has been unveiled at a high-level virtual CEO Roundtable convened by the International Finance Corporation (IFC), Nigerian Exchange (NGX) Group Plc, and the Lagos Chamber of Commerce and Industry (LCCI).
The NGCP builds on the momentum of Nigeria2Equal and other initiatives that have advanced workplace inclusion, women’s leadership, entrepreneurship, and sustainable finance across Nigeria’s private sector.
Designed as a more integrated and collaborative platform, the programme seeks to scale impact through coordinated action among development institutions, business leaders, regulators, and the organised private sector.
Anchored on three strategic priorities, the programme aims to increase women’s representation in leadership, improve access to quality employment, and expand access to productive assets—including finance, technology, and markets—for women and women-led businesses.
The partners are expected to formally launch the Nigeria Gender Country Program at a physical event scheduled for July 9, 2026, where stakeholders will further advance implementation of the programme’s strategic priorities.
At the virtual event, the Director General of the Securities and Exchange Commission (SEC), Mr Emomotimi Agama, said, “Gender inclusion is fundamentally an economic growth imperative. Closing gender gaps can unlock billions of dollars in value for Nigeria while strengthening business performance and national competitiveness. We must therefore move beyond viewing inclusion as a corporate social responsibility initiative or compliance exercise, and instead recognise it as a strategic driver of productivity, innovation, and sustainable economic growth.”
Commenting on the initiative, the chief executive of NGX Group, Mr Temi Popoola, said the initiative “presents a significant opportunity to deepen impact and accelerate progress across corporate Nigeria. By expanding women’s access to leadership opportunities, quality employment, finance, technology, and markets, we can unlock substantial economic value while building a more competitive, inclusive, and resilient private sector. At NGX Group, we believe the capital market has a critical role to play in advancing these outcomes through stronger governance, transparency, and stakeholder engagement.”
On his part, the IFC Head of Office in Lagos, Mr Christian Mulamula, said, “Closing the gender gap is one of the most significant opportunities to strengthen competitiveness and productivity. Across Africa, gender inequality is estimated to cost up to $2.5 trillion. Through the Nigeria Gender Country Program, IFC is working with the private sector to expand women’s leadership, improve access to better jobs, and increase opportunities for women-led businesses. Building on Nigeria2Equal, this initiative focuses on practical, measurable solutions that help businesses grow while advancing inclusive growth.”
In her remarks, the DG of LCCI, Ms Chinyere Almona, noted that the programme’s success would depend on leadership accountability and sustained commitment from business leaders, particularly in embedding gender inclusion into organisational strategy and execution.
General
VDR, ECDIS Data Retrieved as NSIB Probes Maersk Vessel Collision at Bonny Anchorage
By Adedapo Adesanya
The Nigerian Safety Investigation Bureau (NSIB) has commenced a forensic investigation into the collision between the container vessel MV Maersk Valparaiso and the oil tanker MT Lady Martina at Bonny Anchorage in Rivers State, following the download of Voyage Data Recorder (VDR) and Electronic Chart Display and Information System (ECDIS) data from the vessel for navigational analysis.
The bureau’s Director of Public Affairs and Family Assistance, Mrs Funke Adebayo Arowojobe, explained that in line with the International Maritime Organisation (IMO) Casualty Investigation Code and international obligations, NSIB had formally notified the Transport Safety Investigation Bureau (TSIB) of Singapore as a substantially interested State.
The incident, which occurred on May 20, 2026, has been classified by the bureau as a Very Serious Marine Casualty (VSMC).
She also said that NSIB activated its marine occurrence response protocols immediately after receiving notification of the incident, noting that the investigation Go-Team was deployed to Onne and Bonny on May 22 to commence evidence preservation and preliminary investigative activities.
The bureau disclosed that investigators boarded both vessels and conducted interviews with their masters and key crew members, while operational records and navigational data linked to the incident were secured.
Also, the director stressed that the bureau had commenced collaborative engagement with relevant local and international stakeholders as part of the investigation process, assuring the public and maritime stakeholders that the investigation would be conducted with professionalism, independence and thoroughness, stressing that the objective was to determine the causal and contributory factors of the occurrence and enhance maritime safety.
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