African Tech has recorded its largest M&A with a 72 percent jump in 2025 as startups pivot to consolidation.
This marked a turning point for African tech as it is no longer just surviving a funding winter but is actively restructuring itself.
According to the State of Tech in Africa 2025 Year in Review by TechCabal Insights, the sharp rise in mergers and acquisitions marked 2025 as the continent’s clearest pivot yet toward maturity and consolidation.
African startups recorded 67 merger and acquisition deals in 2025, the highest annual total ever tracked. This represents a 72 percent jump from the 39 deals in 2024, and significantly surpasses the previous peak of 40 deals recorded in 2022.
The surge comes as global IPO markets remained subdued, reinforcing M&A as the primary exit and growth pathway for African tech companies.
Unlike earlier years, where acquisitions were often driven by distress, the report shows that most 2025 deals were strategic.
Well-capitalised startups and incumbents used acquisitions to enter new markets, secure regulatory licences, deepen infrastructure, and consolidate fragmented value chains.
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This shift reflects a decisive move away from ‘growth at all costs’ toward efficiency, defensibility, and long-term scale.
“Fintech emerged as the centre of this consolidation wave, accounting for nearly 46 percent of all M&A deals in 2025. Players such as Moniepoint, Stitch, and Rank (formerly Moni) executed multiple acquisitions to strengthen their banking, payments, and processing capabilities.
Traditional financial institutions also became more active buyers, revealing the growing convergence between banks and software-driven fintech platforms.
Beyond fintech, sectors such as e-commerce, logistics, telecoms, healthcare, and deeptech also recorded notable deal activity. Companies such as Twiga Foods pursued vertical integration by acquiring distributors, while telecom giants like AXIAN expanded regionally through high-profile purchases.
These moves point to a broader ecosystem-wide acceptance of M&A as a core growth strategy rather than an exception.
Geographically, acquisitions remained concentrated in Africa’s ‘Big Four’ markets, which are South Africa, Kenya, Egypt, and Nigeria, which accounted for about 75 percent of acquired startups.
The report also highlighted growing activity in emerging hubs such as Côte d’Ivoire, Zambia, Morocco, and Senegal, signalling a gradual widening of liquidity opportunities beyond the traditional centres.
There was also a growing confidence in African startups as global acquirers. Several 2025 deals involved African companies acquiring businesses outside the continent, particularly in Europe and the United States.
These cross-border transactions suggest that African tech firms are no longer just local champions but increasingly competitive global players.
As funding becomes more concentrated and investors prioritise proven models, the report noted that consolidation will likely accelerate into 2026.
