Africa’s technology sector underwent a major strategic shift in 2025, with companies increasingly choosing mergers and acquisitions (M&A) over large fundraising rounds to drive growth, according to industry data.
Instead of relying on venture capital, many startups expanded by acquiring or merging with other firms to scale operations, enter new markets, or strengthen product offerings. Industry reports show that 67 M&A deals were completed in 2025, a sharp rise from 39 deals in 2024, marking the highest level of acquisition activity recorded on the continent.
Analysts say the trend reflects tougher funding conditions and subdued public listing opportunities, prompting founders and investors to view consolidation as a faster and more predictable growth path.
“Acquisitions allow companies to bypass long fundraising cycles and immediately gain customers, licences, and market presence,” one industry analyst noted.
Tools Power Post-Acquisition Integration
As African tech firms expand through acquisitions, operational efficiency has become critical. Companies are increasingly adopting project management platforms, cloud storage systems, and customer support tools to integrate teams and align workflows across multiple locations.
Cross-border expansion has also increased demand for secure remote access as companies operate in diverse regulatory environments. Encrypted browsing tools and virtual private networks (VPNs) are commonly used to protect sensitive data during post-merger integration and early-stage operations in new markets.
Industry insiders say testing such tools before long-term adoption helps companies manage risk and ensure smooth transitions, particularly during complex mergers.
Fintech, Logistics Lead Deal Activity
Acquisition activity in 2025 cut across multiple sectors, with fintech accounting for the largest share. In Nigeria, Moniepoint acquired smaller financial software firms, while Rank (formerly Moni) pursued deals to strengthen its banking licence and expand payment services.
In e-commerce and logistics, Twiga Foods moved to secure its supply chain through acquisitions of local distributors, while logistics platform Logidoo completed a cross-border acquisition of Kamtar, extending its regional footprint.
Telecoms and media also recorded notable activity, including AXIAN Telecom’s strategic stake in Jumia, while the healthtech and deep-tech sectors saw deals such as HearX’s acquisition of Eargo and Adapt IT’s purchase of ResRequest.
African Startups Go Global
African tech companies are no longer limiting their expansion to the continent. Several firms completed acquisitions or established operations in Europe and North America, particularly in the United Kingdom and the United States, often by acquiring specialised service providers to accelerate market entry.
Within Africa, countries such as Uganda, Senegal, and Morocco hosted acquisitions by firms based elsewhere on the continent, giving buyers access to new customers and technology while offering sellers viable exit options amid limited local investment.
Observers say the trend signals a growing confidence among African tech firms to compete globally.
Acquisition-Led Growth Set to Continue in 2026
As 2026 unfolds, analysts expect acquisition-driven growth to remain a dominant strategy for African tech companies. The surge in deals last year has reshaped how founders think about scale, market entry, and long-term sustainability.
By acquiring existing businesses, companies gain access to talent, infrastructure, and local expertise without starting from scratch—an advantage in increasingly competitive markets.
With fintech, logistics, healthcare, and cloud services already seeing follow-up deals this year, acquisitions are no longer a secondary option. For many African tech firms, consolidation has become the primary path to growth.
