Africa’s tech ecosystem saw renewed momentum in 2025, with startup fundraising rising 33 percent to US$3 billion as investors returned after two cautious years.

Deals were signed, acquisitions closed, and confidence crept back into the market.

Yet behind the headline growth was a quieter story: several high-profile deals never materialised.

According to Tecable, many negotiations collapsed late, while others faded after months of unproductive fundraising.

Read more: Techbytes: Morocco to invest $140 million in startup ecosystem under digital 2030 strategy (TechAfricanews)

A number of companies imploded publicly due to governance failures or regulatory action. Together, these failures revealed a tougher, more disciplined ecosystem—one less willing to rescue struggling startups or overlook weak fundamentals.

For some founders, acquisition talks became a last attempt at survival. Nigeria’s Medsaf entered discussions in late 2024 after running out of cash, but neither a sale nor fresh funding came through.

The pharmaceutical supply-chain startup shut down, highlighting how difficult it has become to sell companies once financial distress is obvious.

In Kenya, buy-now-pay-later firm Lipa Later unravelled in public view. Despite raising nearly US$10 million by 2024, the company struggled under the cost of acquiring Sky Garden.

By early 2025, investors declined to provide more capital, and the company was placed under administration in March.

Nigeria’s Edukoya followed a different path.

Although it raised US$3.5 million in a celebrated pre-seed round, its business model failed to gain traction.

Attempts at partnerships and mergers fell through, leading to its shutdown in February.

Other startups failed simply because funding never arrived.

Joovlin, a Nigerian e-commerce fintech, shut down in January after failing to raise beyond its seed round.

In South Africa, 54 Collective closed its venture studio after the Mastercard Foundation withdrew funding, exposing the vulnerability of ecosystem builders dependent on single backers.

Some collapses were driven by regulation and governance issues.
Nigerian open-finance startup Okra exited in July after slow adoption and regulatory pressure eroded investor patience.

South Africa’s Banxso was liquidated following a massive fraud penalty, while Bento Africa shut down amid tax and pension fraud allegations.

Despite these failures, 614 deals closed in 2025, signalling recovery. But the deals that didn’t happen were just as telling—evidence of a market learning to say no, prioritising sustainability, and drawing firmer lines around governance and trust.

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Zambia has reportedly attained over 92 percent population connectivity, supported by fibre links to neighbouring countries and satellite solutions, according to the government.

Technology and Science Minister, Felix Mutati, said the level of connectivity was the result of sustained investment in digital infrastructure.

Mutati was speaking during the launch of a new mobile money–linked virtual payment service by MTN in partnership with Mastercard at the InterContinental Hotel in Lusaka on Thursday.

He said the government was enabling systems and platforms to communicate seamlessly to support secure and efficient domestic and cross-border transactions.

“We are strengthening digital resilience through robust legal and regulatory frameworks, including data protection and cybersecurity reforms, to ensure users can transact safely,” Mutati said.

The minister further said the government had removed barriers to private sector investment by eliminating import duties on certain digital infrastructure and streamlining approval processes for network expansion.

Read More: Zambia records world’s highest rate of suspected digital fraud at account creation stage —Report

Mutati added that the government was leveraging partnerships among public institutions, mobile network operators, financial institutions, global payment platforms and technology providers to expand access to digital services.

He cited collaboration involving MTN, Mastercard, Network International, UBA and the Bank of Zambia as part of efforts to strengthen digital payments infrastructure.

“I wish to reaffirm the government’s commitment to policies that enable innovation, investment and growth in the digital economy,” Mutati said.

Meanwhile, company Chief Executive Officer, Komba Malukutila, said the newly launched MTN service was intended to enable farmers, small and medium enterprises, freelancers and digital service providers to make and receive payments, including across borders.

He acknowledged the role of partners, regulators and financial institutions in developing the service, saying collaboration remained central to secure and interoperable digital financial systems.

Malukutila said the launch marked a further step in the company’s efforts to expand digital financial services in Zambia.

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Morocco has announced plans to invest 1.3 billion Moroccan dirhams (about US$140 million) into its startup ecosystem as part of the Morocco Digital 2030 strategy, aimed at positioning the country as a leading digital and innovation hub in the region.

The announcement was made by Delegate Minister for Digital Transition and Administrative Reform, Amal El Fallah Seghrouchni, during the closing session of the fifth Digital Now Forum 2025, held in Casablanca, according TechAfricanews.

The funding will be distributed across the startup lifecycle, with MAD 750 million (US$81 million) earmarked for venture-building initiatives to support early-stage startup creation and growth.

Read more: Techbytes: Angolan Startup Anda raises $3.4 million to transform motorcycle taxi industry (TechAfrica)

An additional MAD 450 million (US$49 million) will be directed towards venture capital to attract increased private-sector investment, while MAD 70 million (US$7.6 million) will be used to expand and strengthen Morocco’s Technopark network.

Seghrouchni said the government is reinforcing the venture capital ecosystem through new financing instruments designed to boost private-sector participation and stimulate entrepreneurship across the country.

She said the measures are expected to support the creation of 1,000 startups by 2026, with a longer-term target of 3,000 startups by 2030.
Beyond funding, the strategy also focuses on inclusive digital growth.

The minister highlighted initiatives aimed at improving digital access in rural areas, as well as the rollout of Jazari Institutes, which are intended to foster regional innovation hubs and strengthen local entrepreneurial ecosystems.

The Morocco Digital 2030 strategy forms part of the government’s broader efforts to accelerate digital transformation, enhance innovation capacity and drive sustainable economic growth.

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Angolan mobility startup Anda has successfully secured US$3.4 million (€3 million) in seed funding, co-led by European venture capital firms Breega and Speedinvest.

Founded in 2022 by Sergio Tati and Joerg Nuehrmann, Anda is developing a cutting-edge technology platform aimed at formalizing Angola’s expansive and fragmented motorcycle taxi industry, according to Tech Africa

The company’s innovative approach combines a “drive-to-own” asset financing model for drivers with a ride-hailing and delivery service for customers, offering a holistic solution to the challenges facing this vital sector.

This investment marks a major milestone for the Luanda-based startup, which is working to address key issues in the local mobility market, including the lack of regulation and the credit gap that hinder many motorcycle taxi drivers.

Read More: Techbytes: EU commits €45 million to accelerate Nigeria’s digital transformation (TechAfrica)

Angola’s mobility sector is heavily reliant on an estimated 1.2 million motorcycle taxi drivers, with around 600,000 of them operating in the capital city, Luanda.

Despite the sheer size of the market, it remains almost entirely informal, with most drivers operating without licenses, proper training, insurance, or safety equipment.

A major barrier is that the majority of these drivers do not own their motorcycles, which severely limits their earning potential.

Without ownership, they are excluded from accessing formal financial services and are unable to scale their operations as micro-entrepreneurs.

Anda estimates that Angola’s motorcycle taxi market is worth approximately $5 billion, but this opportunity is part of a broader trend across sub-Saharan Africa.

A 2019 BBC report suggested that the entire motorcycle taxi market in the region could be worth up to $80 billion.

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Yango Zambia, part of the global tech company Yango Group, hosted a high-level Tech Day event in partnership with the Ministry of Technology and Science, bringing together senior government officials and technology leaders for a focused dialogue on how AI and digital systems can strengthen Zambia’s public services.

Held at the InterContinental Hotel in Lusaka on Monday, 8th December 2025,, the engagement focused on practical technology solutions that can be deployed within government institutions, including digital revenue management, transport systems, customs processes, healthcare, education, agriculture intelligence and data-driven planning.

The session was structured around real use cases, with an emphasis on systems that improve visibility, reduce leakages and support evidence-based decision-making across the public sector.

Hon. Felix Mutati, Minister of Technology and Science, emphasised the central role technology must play in improving oversight and national efficiency.

“No transaction in this economy should escape us. We must use technology to close leakages, strengthen regulation and ensure that every part of the economy is accounted for. When we seal the gaps, we unlock the revenue needed to support the President’s agenda for growth, investment and service delivery. This is why partnerships like this with Yango Zambia matter, because the right technology gives us visibility, control and the ability to move the country forward with confidence.”

Yango believes Zambia has the potential to leapfrog traditional barriers through AI-enabled infrastructure, and the company stands ready to work side-by-side with the government to unlock that future in a practical, responsible and sustainable way.

Addressing participants, Adeniyi Adebayo, Chief Business Officer of Yango Group, said the company’s focus is on solving concrete operational challenges rather than promoting abstract technology concepts.

Read more: Yango Group announces strategic investment in Gigmile to accelerate Africa’s last-mile delivery and logistics innovation

“Our goal is to be practical and useful in everyday public services. We do not approach governments with theory, but with systems that can be tested, measured and improved in real conditions. Artificial intelligence is already transforming how countries manage transport, revenue, logistics and service delivery. The question is how to apply it responsibly, in a way that reflects local realities and preserves national technological sovereignty.”

He added that Yango’s tools are designed to integrate across sectors while remaining modular and adaptable.

“From transport data and customs digitalisation to agriculture intelligence and revenue optimisation, we build systems around real problems institutions face daily. We work closely with local communities, test quickly and scale only what delivers results. Our ambition is to support Zambia with technology that strengthens public systems and delivers tangible outcomes for citizens.”

Throughout the session, government officials engaged directly with the company’s executives to explore opportunities for pilot projects, data-driven planning and long-term digital integration across key national sectors.

The Tech Day event forms part of Yango’s wider commitment to supporting Zambia with practical, AI-enabled systems that enhance public services, increase transparency and contribute to inclusive national development.

The Tech Day was attended by several high profile government officials including Hon Felix Mutati, The Minister of Technology and Science, Dr Schmidt Chintu Director General – Cyber Security Agency with representation from Industrial development Corporation, ZICTA, Ministry of Home Affairs, Ministry of Education, Presidential Delivery Unit and The Ministry of Commerce.

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Nigeria has received a major boost for its digital economy ambitions, with the European Commission pledging €45 million under the EU–Nigeria Digital Economy Package.

The announcement was made in Brussels during the EU–Nigeria Digital Open Day, which brought together EU officials, industry leaders, and Nigeria’s delegation led by Dr. ‘Bosun Tijani, Minister of Communications, Innovation and Digital Economy.

According to TechAfrica, the funding is set to accelerate Nigeria’s digital growth, supporting initiatives to build a more connected, innovative, and inclusive digital economy.

Key areas of collaboration discussed include:

Read more: Techbytes: Elon Musk’s X fined €120 million by EU in first major digital services act sanction

Secure Connectivity and Digital Infrastructure: Expansion of nationwide fibre networks, enhanced subsea cable capacity, deployment of 5G, and improved last-mile access for underserved communities.

E-Governance and Digital Public Infrastructure (DPI): Development of digital identity systems, interoperable frameworks, e-payment infrastructure, and digital public services to improve government efficiency and citizen experience.

Digital Skills and Talent Development: Support for Nigeria’s flagship 3MTT programme, which trains millions of technical talents, alongside partnerships for workforce development, innovation exchange, and talent mobility.

Tijani described the investment as a strong vote of confidence in Nigeria’s digital ambitions and aligned with President Bola Ahmed Tinubu’s vision of steering the country toward a US$1 trillion economy.

He thanked EU Commissioner, Jozef Síkela, and the European Union Delegation in Nigeria for their continued partnership in driving the nation’s digital transformation journey.

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Elon Musk’s social media platform, X, has been fined €120 million (about $140 million) by European Union regulators for violating online content rules—marking the first major enforcement action under the bloc’s landmark Digital Services Act (DSA).

According to Reuters, the ruling has sparked renewed criticism from the U.S. government.

X did not respond to emailed requests for comment, but Musk reacted sharply on the platform, replying “Bullshit” to an EU Commission post announcing the penalty.

He later reposted messages criticizing the decision, writing: “Freedom of speech is the bedrock of democracy. The only way to know what you are voting for.”

According to Reuters, Washington has repeatedly condemned Europe’s tougher stance on major technology firms.

Read more: Techbytes: Elon Musk smiles again, as Tesla sees 11.9% stock surge following announcement of full-self driving technology

The administration of U.S. President Donald Trump claims EU regulation disproportionately targets American companies and amounts to censorship of U.S. citizens.

The European Commission, however, rejected those accusations, insisting its digital rules apply equally to all companies regardless of nationality.

Officials said Europe is acting to safeguard its digital and democratic standards, which often set global precedents.

The fine against X follows a two-year investigation under the DSA, which compels large online platforms to take stronger measures to curb illegal and harmful content.

In a separate case, the EU charged ByteDance’s TikTok in May with failing to meet a DSA requirement to publish an advertising repository to help researchers and users detect scam ads.

EU tech chief Henna Virkkunen said X’s penalty was proportionate, based on the nature and seriousness of the infringements, the number of affected users, and the duration of the violations.

“We are not here to impose the highest fines. We are here to make sure that our digital legislation is enforced. If you comply with our rules, you don’t get the fine. It’s as simple as that,” she told reporters.

Virkkunen stressed that the DSA was not designed to censor content.

“It is very important to underline that the DSA has nothing to do with censorship,” she said.

She added that upcoming decisions on other companies accused of DSA violations should move faster than the X case.

“I’m really expecting that we will do the final decisions now more quickly,” she said.

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Google has announced a US$2.1 million (₦3 billion) commitment to fund programmes that will increase AI talent in Nigeria.

According to Techpoint Africa, the money would be channelled into five Nigerian organisations working across AI upskilling, innovation support, and cybersecurity.

FATE Foundation and the African Institute for Mathematical Sciences (AIMS) would embed an advanced AI curriculum into universities to deepen the country’s technical talent pipeline.

Read More: Techbytes: US govt commits $150 million to Zipline to rapidly expand access to life-saving drone delivery services in Africa (Africa TechInsights)

The African Technology Forum (ATF) would run an innovation challenge designed to help developers build real-world AI products.

On the digital safety front, Junior Achievement Africa would expand its online safety curriculum for young people, and the CyberSafe Foundation will build cybersecurity capacity for public institutions.

The Minister of Communications, Innovation and Digital Economy, Bosun Tijani, said the intervention comes at a critical moment as Nigeria looks to harness the projected $15 billion economic value AI could add to its GDP by 2030.

He described the initiative as an example of private-sector support needed to “nurture talent, strengthen infrastructure, and advance national AI priorities.”

This news follows the launch of Google’s AI Skilling Blueprint for Africa, which aims to help Africa close its critical skills gap.

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Backbone Connectivity Network (BCN), a wholesale open-access digital service provider, is reportedly partnering with Zadara in what is speculated to be launch of Africa’s first Neutral Multi-Tenant AI Factory powered by NVIDIA GPUs.

The new platform will enable cloud providers across the continent to deploy secure, scalable and cost-efficient AI-ready cloud services as demand for artificial intelligence accelerates, according to It News Africa.

“We congratulate BCN and Zadara on their partnership and wish them every success in developing state-of-the-art computing in West Africa,” said Yassin Bendjebbour, Team Lead of the Digital Investment Facility at the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ), speaking on behalf of DIF-AfIDA.

BCN is supported by the Digital Investment Facility–African Infrastructure Development Association Digital Catapult, which helps accelerate the growth of innovative digital infrastructure projects across the continent.

Read more: Techbytes: US govt commits $150 million to Zipline to rapidly expand access to life-saving drone delivery services in Africa (Africa TechInsights)

The Digital Investment Facility is part of the Team Europe Data Governance in Africa Initiative under the EU Global Gateway Strategy, funded by the European Commission, Finland and Germany, and implemented by GIZ and Haus Finland.

“Our partnership with Zadara enables us to deliver Africa’s first Neutral AI Factory. Cloud providers across Africa need a trusted partner to supply the AI cloud infrastructure that powers their services. With Zadara’s multi-tenant AI cloud software, we can provision secure, cost-effective and business-specific AI clouds from our Neutral AI Factory. Together, we are making that vision a reality,” BCN Chief Executive Officer, Ibrahim Dikko, said.

Zadara Chief Executive Officer, Yoram Novick added: “We’re excited to partner with BCN to launch Africa’s first Neutral Multi-Tenant AI Factory. By combining BCN’s Neutral Factory, Zadara’s advanced multi-tenancy software and NVIDIA’s industry-leading AI platform, we are helping cloud providers across Africa accelerate their transformation into the AI era. This collaboration delivers scalable, secure and cost-efficient AI that fosters innovation and drives digital growth throughout the continent.”

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The U.S. Department of State is awarding US$150 million in Zipline, the world’s largest autonomous logistics system, to support the expansion of its life-saving artificial intelligence and robotics infrastructure across Africa.

Under this pay-for-performance model – the first of its kind from the State Department – the funds will be released only when African governments sign expansion contracts and commit to ongoing operating costs, ensuring long term sustainability of the service in public health systems.

Zipline Founder, Keller Rinaudo Cliffton, said each participating African government already uses Zipline regionally, and this award enables them to scale the centralized, on-demand logistics infrastructure nationwide.

In a report by Africa TechInsights, Clifton stated that at scale, Zipline’s expanded services would reach more than 130 million Africans with on-demand delivery that reduces waste, equalizes health access, increases treatment rates, and improves health outcomes.

“It triples the number of health facilities Zipline serves to 15,000 and supports the creation of more than 800 high-skilled, high-paying jobs in Africa in logistics, health systems, and advanced engineering in robotics and artificial intelligence,” he said.

Clifton highlighted that it would also drive up to $1 billion in annual economic gains across Africa by resolving the logistics and credit bottlenecks that choke commerce in so many regions.

He said the deal ushered in a new, results-driven model of foreign aid that prioritises innovation, scales what works, and emphasizes long term sustainability and mutual economic growth.

“Zipline has been operating across Africa since 2016, partnering with national governments to deliver blood and medicines to over 5,000 hospitals and health facilities,” Clifton nodetd.

Read More: Techbytes: Paystack fires co-founder Ezra Olubi following misconduct allegations (Condia)

He said its work had been credited with helping cut maternal deaths by up to 56 percent, reducing zero-dose prevalence by 42 percent in a single year, and reducing missed opportunities to treat severe malaria by 66 percent.

Since its first delivery in 2016 in Rwanda, Zipline’s autonomous logistics system has flown more than 120 million commercial autonomous miles and completed over 1.7 million autonomous deliveries with zero safety incidents, proving it can rapidly deploy life-saving technology to expand access and improve health outcomes across Africa.

Rwanda is expected to be the first country to expand under this new award, building a third distribution center and doubling daily deliveries, expanding to urban communities with Zipline’s new short-range precision delivery drone, and building a first-of-its-kind flagship testing facility that hosts Zipline’s global hardware and software product testing.

Additional Zipline expansions are expected in additional countries, including Cote d’Ivoire, Kenya, and Nigeria.

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