The tech sector in Africa changed noticeably in 2025. Instead of raising large rounds of funding, many companies chose to grow by buying or merging with others. Data from industry reports show that mergers and acquisitions reached a record high. A total of 67 deals were closed last year, up from 39 the year before.

This shift shows that many founders and investors now see acquisition as a way to gain scale, enter new markets, or add new products. In many cases, deals were done because markets for public listings remained quiet and funding rounds became harder to secure.

These deals helped companies avoid the uncertainty of public markets. They gave buyers the chance to take over existing customer bases and local licences. This change in strategy suggests that consolidation is now a part of how tech companies on the continent plan their growth.

Tools and Online Services in Acquisition Strategy

As more tech firms expand through acquisition, they often rely on practical tools to manage larger and more scattered operations. Common services include project management platforms, shared storage solutions, and customer support systems. These tools allow companies to merge teams, align workflows, and respond quickly to user needs after a deal is completed.

Cross-border operations also raise the need for secure remote access. Some firms use encrypted browsing tools to safely link with internal systems while operating in new or less-regulated markets. VPNs are one of the most common solutions for this purpose. They help ensure that sensitive data stays protected during transitions and early-stage integrations.

Some companies test such tools using a VPN free trial to determine whether they meet the technical requirements of new locations. This can help assess performance before investing in a long-term solution, especially during early stages of a merger where operations may still be shifting. Simple steps like this often make a difference in how smoothly the post-deal period unfolds.

How Acquisition Has Shaped Key Sectors

Acquisition activity in Africa’s technology scene was broad in 2025. Fintech accounted for a large share of the deals. Moniepoint picked up smaller financial software firms in Nigeria. Rank, which used to be called Moni, bought companies to improve its banking licence and expand payment options.

E-commerce and logistics saw changes, too. Twiga Foods made moves to secure its supply chain by buying local distributors. Logistics platform Logidoo acquired Kamtar in a cross-border deal that brought more regional reach. Telecom and media also saw activity when AXIAN Telecom added a strategic stake in Jumia.

Healthcare and tech services were part of the trend as well. HearX bought Eargo to bring new health solutions together. In deep tech, Adapt IT purchased ResRequest to add software tools to its portfolio. These examples show that buyers are looking across different sectors, not only in finance.

Cross-Border Expansion and Global Reach

African tech companies did not limit their acquisitions to the continent. Some deals took these firms into Europe and the Americas. A number of African startups made purchases or established operations in the United Kingdom and the United States. This included deals where tech firms acquired specialised service providers to enter new markets.

Countries such as Uganda, Senegal, and Morocco also hosted acquisitions by African companies from outside their borders. These moves gave buyers access to new customers and technology. They also helped sellers find exit options when local investors were limited.

This pattern of global expansion shows that African tech firms are no longer seen only as local players. They are active in a wider market and interact with international partners in ways that were rare a few years ago.

What This Means for the Future

Now in 2026, the pattern set in the previous year is already shaping how African tech companies approach growth. The record number of acquisitions in 2025 marked a new way forward. Many firms are choosing to buy their way into markets, licenses, and customer networks rather than rely on long fundraising cycles.

This year, analysts expect acquisition-led growth to remain a top strategy. Companies that move early can gain access to talent, local market knowledge, and operational infrastructure without having to build everything from the ground up.

Sectors like fintech, logistics, healthcare, and cloud services are already seeing follow-up deals. As 2026 continues, acquisition appears less like a side strategy and more like the main way tech companies in Africa plan to grow.

By Aduragbemi Omiyale

Applications for a 12-week AI First hybrid programme, designed for Series A startups based in Africa or building Africa-centric solutions with AI and machine learning, have opened at g.co/acceleratorafrica.

This is an initiative of Google and it reenforces the tech giant’s commitment to accelerating AI-driven scientific and technological breakthroughs across the continent.

The programme, known as the Google for Startups Accelerator Africa, is in its 10th edition in 2026 and it is targeted as AI-driven scientific breakthroughs.

Entries for the cohort began today, Thursday, February 5, 2026, and will close on Wednesday, March 18, 2026, with the hybrid programme starting in April 2026 for 12 weeks.

A statement from the organisers disclosed that participants will benefit from access to Google’s AI expertise and technical resources, alongside mentorship from seasoned AI professionals and invaluable networking opportunities.

Since its inception in 2018, the Google for Startups Accelerator: Africa program has supported 180+ startups from 17 African countries. Collectively, these startups have raised over $350 million in funding and created more than 3,700 direct job opportunities in the region.

“Africa’s tech landscape is seeing a vibrant shift toward deep-tech innovation. For Class 10, we are focusing on the potential of AI to drive health and societal benefits, providing the infrastructure and expertise to turn these startups into the research labs of the continent,” the Head of Startup Ecosystem for Africa, Folarin Aiyegbusi.

By Adedapo Adesanya

Redtech Limited, a Nigerian financial-technology company backed by Nigerian businessman, Mr Tony Elumelu, is considering to raise about $100 million in the next two years to expand its footprints across Africa.

This comes as it announced processing N30 trillion ($20.6 billion) in total transactions over the 2025 financial year, over 100 per cent more than the N12 trillion achieved in 2024, placing the company among the highest-volume processors in Nigeria.

The milestone was driven by strong growth across its payment platform, RedPay – including POS network, merchant collections, and digital payment channels.

According to the firm’s chief executive, Mr Emmanuel Ojo, the milestone marks a decisive shift from capability building to operating at national scale, reflecting sustained trust in Redtech’s infrastructure under high-volume conditions, alongside consistent adoption across sectors.

“This milestone reflects trust from businesses that rely on us to collect and move money at scale, and from partners who expect reliability every single day. We have built Redtech around durability, strong governance, and regularity alignment, so SMEs, enterprises, and regulated clients can grow on our rails without worrying about downtime or friction. With that foundation in place, we are ready to take this approach into more African markets,” he said.

According to a statement, the firm’s transaction volumes have been driven by a mix of SMEs, enterprise customers, and financial institutions across retail, hospitality, insurance, energy, public-sector-linked services, and banking. This highlights Redtech’s ability to support complex transaction flows, including batch processing, reconciliations, and always-on uptime across different sectors.

Redtech plans to expand beyond Nigeria into 29 African countries by January 2027, building towards an Africa-wide payments capability that can support businesses operating across borders, sectors, and payment types.

The company will then consider the Series A funding round, Mr Ojo told Bloomberg.

The startup has so far deployed more than 30,000 point of sale devices and started a payment gateway which helps businesses move money at scale through secure, reliable, and scalable systems that reduce payment failures, downtime, and reconciliation failures while meeting the compliance needs of enterprises and regulated sectors.