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.
By Adedapo Adesanya
The Nigeria Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has sealed two fuel stations in Ogun State engaging in under-dispensing of petroleum products and non-compliance with the Petroleum Industry Act of 2021.
Leading the enforcement team around the Akute-Ajuwon axis of the state, the Head of Distribution Systems Storage and Retailing Infrastructure, Mr Olufemi Adebowale, said the move became imperative in view of repeated breaches of regulatory requirements by the affected stations and the need to protect the rights of consumers from sharp practices.
According to him, the development is part of its ongoing efforts to enforce compliance with industry regulations, protect consumers from sharp practices, and ensure that petroleum marketers dispense the correct quantity of products across the state.
He explained that records available to the authority showed that the fuel stations have consistently violated regulatory compliance by under-dispensing petroleum products, illegally breaking official seals placed on the facility, and resuming operations without authorisation.
According to him, such actions amount to a violation of the Petroleum Industry Act 2023 and undermine efforts to protect consumers from exploitation.
“The Nigerian Midstream and Downstream Petroleum Regulatory Authority is carrying out a lawful enforcement on this facility. Our records have consistently shown that this company has been violating regulatory compliance.”
“It is high time we made it clear that they cannot continue to under-dispense products, deliberately remove our seals, and believe that nothing will happen; that is why we are here to enforce the provisions of the Petroleum Industry Act 2023 he said.
“When it comes to under-dispensing, they are cheating members of the public by not selling the correct quantity of fuel. Also, once a station is sealed, it has no authorisation to operate. But this station deliberately removed our seal and continued operations, which is against the law.”
Mr Adebowale disclosed that the authority has been monitoring the station’s activities since 2025, describing the violations as persistent despite several enforcement actions.
He revealed that the affected station had been sealed no fewer than six times within the period, but continued to remove the authority’s seals and ignore invitations extended by the regulator.
“From our records, this has been happening since last year. The station has also refused to honour our invitations. It has been sealed not less than six times, yet it keeps removing our seals and resuming operations.”
On the sanctions awaiting the operators, Adebowale said the authority had served the stations with enforcement notices, while the facilities would remain shut until all stipulated conditions are met.
He added that the NMDPRA management would also consider suspending the operating licence of the affected stations, while also sending a strong warning to any fuel station intending to go against the rules of PIA.
“That is against the rules. They do not have any right to operate until we authorise them to do so. This is a clear deviation from regulatory compliance. According to the Petroleum Industry Act (PIA), when this happens, we must carry out enforcement, and that is why we are here today.
Beyond conducting this exercise, we are also using this opportunity to address the public through the media. As long as operators are doing the right thing, they have nothing to fear. However, for those going against compliance levels—whether through under-dispensing or direct violation of our seal—all necessary enforcement, penalties, and sanctions will be strictly applied against such offenders.”
“A letter has been served, the station has been completely shut down, and they must meet all the conditions, including payment of the applicable penalties. We are also looking at suspending the operating licence, subject to management’s approval,” he said, warning that any further attempt to tamper with the seals or resume operations illegally would attract criminal prosecution.
By Adedapo Adesanya
The Nigerian Ports Authority (NPA) says it has moved to reduce port gridlock by releasing trucks into Apapa and Tin Can ports in scheduled batches based on terminal demand, while enforcing strict rules against indiscriminate parking on port access roads.
The General Manager, Lagos Port Complex, Mr Debo Lawal, said the NPA management, led by Managing Director, Mr Abubakar Dantsoho, was committed to ending indiscriminate truck parking around the ports and aligning operations with global best practices.
He said the authority was working with Truck Transit Parks Limited (TTP) to regulate truck movement into terminals through a phased release system.
According to him, trucks will now be released in scheduled batches based on terminal demand, instead of allowing all approved trucks to enter the port corridor simultaneously.
“If a terminal requires 100 trucks, they will not all be released at once. They will come in batches to reduce pressure on the port access roads,” he said in an interview with the News Agency of Nigeria (NAN) on Monday in Lagos.
Mr Lawal said a joint task force had been clearing Apapa and Tin Can port access roads since June 26, 2026, operating until about 8 pm daily to prevent indiscriminate parking.
He added that another clearance exercise would soon be conducted to sustain the gains and prevent a return to the persistent gridlock that previously characterised the port corridors.
The port manager, however, urged truck operators to support the initiative by exiting the port environment immediately after loading or offloading cargo.
He noted that some truck drivers still parked along access roads after completing port operations, despite repeated engagements by the authority.
“We engage truckers and their leadership every day, but enforcement will continue alongside sensitisation to ensure compliance,” he said.
On infrastructure, Mr Lawal said the federal government, through the NPA, had begun payment of the five per cent counterpart funding required for the 726 million dollar port rehabilitation project.
He disclosed that preliminary activities, including borehole drilling and site investigations, had been completed, while contractors were expected to mobilise to the site before the end of July.
According to him, a technical stakeholders’ meeting was held on July 7, while a broader stakeholders’ review was scheduled for July 13 to assess progress and address implementation gaps.
Mr Lawal said the rehabilitation project, alongside ongoing reforms, was aimed at reducing cargo clearance time, eliminating documentation bottlenecks and improving operational efficiency at the nation’s seaports.
He added that the National Single Window project was about 80 per cent completed, with a dedicated office already established near the port to improve inter-agency coordination.
According to him, the digital platform will integrate banks, the Nigeria Customs Service, shipping companies and other government agencies to improve efficiency, plug revenue leakages and enhance revenue collection.
Mr Lawal expressed confidence that improved digitisation, reduced human interference and more efficient truck management would strengthen Nigeria’s trade competitiveness and enhance operations at the Apapa and Tin Can ports.
By Adedapo Adesanya
The Pension Transitional Arrangement Directorate (PTAD) has said the implementation of the Defined Benefit Scheme Pension Harmonisation is a reform meant to advance and enhance pension payment equity in the country.
The chief executive of PTAD, Mrs Tolulope Abiodun Odunaiya, said this initiative was a landmark reform designed to restore fairness, improve retirees’ welfare and strengthen confidence in the administration of the country’s legacy pension system.
The harmonisation exercise marks one of the most significant policy interventions in the Defined Benefit Scheme since PTAD was established in 2013 to take over the management of pensions under the old federal pension arrangement.
Unlike periodic pension increases that merely raise existing benefits by a percentage, she stressed that pension harmonisation was further than that by recomputing pensions using the latest approved salary structures that existed before the closure of the Defined Benefit Scheme.
She noted that the objective is to ensure that retirees who held similar positions and rendered comparable years of service receive equitable pension benefits regardless of their retirement dates.
The initiative comes against the backdrop of years of agitation by pensioners over historical disparities in pension computation.
She added that the PTAD’s harmonisation programme seeks to resolve that challenge by restoring parity within the system. According to her, pension harmonisation is the formal recomputation of pensions using approved salary structures applicable before the DBS cut-off date.
In practical terms, it ensures that pension outcomes are determined by rank, grade level and years of service rather than the year of retirement.
The Directorate believes the exercise will significantly improve social justice by correcting historical inequities that disadvantaged thousands of retirees.
The harmonisation applies primarily to pure Federal Government pensioners as well as eligible retirees under the Parastatals Pension Department (PaPD), Defunct and Transferred Agencies Pension Department (DTAPD), and the Education and Health Pension Department (TEHPD), particularly those who initially served under the Federal Government before their agencies were transferred to state governments.
