Africa’s technology ecosystem witnessed a clear strategic shift in 2025, as companies increasingly turned to mergers and acquisitions to drive growth, rather than relying on large funding rounds.
Industry data show that acquisition activity across the continent reached a record high last year, with 67 deals concluded, compared to 39 in the previous year. The surge reflects a growing preference among founders and investors to pursue scale through consolidation, market entry and product expansion, amid tougher fundraising conditions and subdued public listing opportunities.
Analysts say the trend highlights a maturing tech ecosystem, where acquisitions are now seen as a viable pathway to growth. For many companies, buying existing businesses offered quicker access to customers, operating licences and established infrastructure, while reducing exposure to volatile capital markets. As a result, consolidation is increasingly shaping long-term growth strategies across Africa’s tech landscape.
As firms expanded through acquisitions, many relied on digital tools to manage larger and more dispersed operations. Project management platforms, shared storage systems and customer support tools have become essential in aligning teams and workflows following mergers. Cross-border expansion has also increased the demand for secure remote access to internal systems, particularly in new or less regulated markets, as companies seek to protect sensitive data during integration phases.
Acquisition activity cut across multiple sectors in 2025, with fintech accounting for a significant share. In Nigeria, Moniepoint acquired smaller financial software firms, while Rank, formerly known as Moni, pursued acquisitions to strengthen its banking licence and broaden payment services. In e-commerce and logistics, Twiga Foods moved to secure its supply chain by acquiring local distributors, while logistics platform Logidoo expanded its regional footprint through the acquisition of Kamtar. The telecom and media space also saw activity, as AXIAN Telecom took a strategic stake in Jumia.
Healthcare and technology services featured prominently as well. HearX acquired Eargo to consolidate hearing health solutions, while Adapt IT expanded its software portfolio with the acquisition of ResRequest. These transactions underline the breadth of sectors embracing acquisition-led growth, beyond the traditionally dominant fintech space.
African tech companies also looked beyond the continent, with several deals extending into Europe and the Americas. Some startups acquired specialised service providers or established operations in the United Kingdom and the United States, while markets such as Uganda, Senegal and Morocco attracted cross-border acquisitions from African firms. These moves provided access to new technologies, customers and exit opportunities, especially where local capital was limited.
As 2026 unfolds, analysts say the momentum from last year is already influencing corporate strategies. With funding rounds becoming more selective and time-consuming, acquisition-led growth is expected to remain central to expansion plans. Early movers stand to gain faster access to talent, market intelligence and operational capacity, without the delays associated with building from scratch.
Sectors including fintech, logistics, healthcare and cloud services are already seeing follow-on deals, reinforcing the view that acquisitions are no longer peripheral. Instead, consolidation is fast becoming the dominant growth model for Africa’s technology companies.
