Africa’s Tech Ecosystem: The Rise of Acquisitions and What It Means for 2026
Africa’s technology landscape underwent a significant transformation in 2025, shifting away from a reliance on fundraising and towards a strategic embrace of mergers and acquisitions (M&A). This trend, fueled by tougher fundraising conditions and limited public listing opportunities, is poised to define growth strategies across the continent in 2026 and beyond.
A Record Year for Deals
Data indicates a surge in acquisition activity, with 67 deals finalized in 2025, a substantial increase from the 39 recorded the previous year. This isn’t simply about survival; it’s about intentional consolidation, market entry, and product expansion. Companies are increasingly recognizing the benefits of acquiring existing businesses for quicker access to customers, licenses, and established infrastructure.
Beyond Fintech: Sector-Wide Consolidation
While fintech remains a key driver, the acquisition wave extends across multiple sectors. In Nigeria, Moniepoint expanded its reach by acquiring smaller financial software firms. Rank, formerly Moni, strategically acquired companies to strengthen its banking license and broaden its payment services. E-commerce and logistics also saw significant movement, with Twiga Foods securing its supply chain through acquisitions of local distributors and Logidoo expanding regionally by acquiring Kamtar.
The trend isn’t limited to these sectors. HearX acquired Eargo to consolidate hearing health solutions, and Adapt IT expanded its software portfolio with the acquisition of ResRequest. Even the telecom and media space saw activity, with AXIAN Telecom taking a strategic stake in Jumia.
Looking Beyond Borders
African tech companies aren’t solely focused on intra-continental deals. Several acquisitions extended into Europe and the Americas, with startups acquiring specialized service providers or establishing operations in the UK and the US. Uganda, Senegal, and Morocco also attracted cross-border acquisitions from African firms, providing access to new technologies, customers, and potential exit opportunities.
The Tools Powering Growth Through M&A
As companies grow through acquisition, the need for robust digital infrastructure becomes paramount. Project management platforms, shared storage systems, and customer support tools are essential for aligning teams and workflows post-merger. Secure remote access to internal systems is also increasingly important, particularly when expanding into new or less regulated markets, to protect sensitive data during integration.
Why Acquisitions are Now the Preferred Strategy
The shift towards acquisitions signals a maturing ecosystem. Acquisitions are no longer viewed as a last resort but as a viable and often preferable pathway to growth. For investors, this creates opportunities to back profitable, consolidation-ready companies or identify undervalued assets from overfunded startups. The era of “blitzscaling at all costs” is over; discipline and profitability are now key.
What to Expect in 2026
Analysts predict that the momentum from 2025 will continue into 2026. With funding rounds becoming more selective, acquisition-led growth is expected to remain central to expansion plans. Early movers will gain a competitive advantage through faster access to talent, market intelligence, and operational capacity.
Sectors like fintech, logistics, healthcare, and cloud services are already seeing follow-on deals, reinforcing the view that consolidation is becoming the dominant growth model for African technology companies.
FAQ
Q: What is driving the increase in acquisitions in the African tech ecosystem?
A: Tougher fundraising conditions, limited public listing opportunities, and a desire for quicker access to markets and infrastructure are key drivers.
Q: Which sectors are most active in M&A activity?
A: Fintech is a major player, but activity is expanding across e-commerce, logistics, healthcare, and telecom.
Q: Are African tech companies looking beyond the continent for acquisitions?
A: Yes, several deals are extending into Europe and the Americas, seeking access to new technologies and customers.
Q: What role does technology play in facilitating these acquisitions?
A: Digital tools like project management platforms and secure remote access systems are crucial for integrating teams and protecting data.
Did you know? Nearly three-quarters of exits in the African tech ecosystem in 2025 were strategic M&A deals.
Pro Tip: For founders considering an acquisition, focus on demonstrating a clear path to profitability and a defensible market position.
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