Africa's startup ecosystem is writing an exciting new chapter, and the protagonists are closer to home than ever before. Between 2023 and 2025, the continent celebrated over 100 startup exits, with roughly half achieved through mergers and acquisitions. Rather than viewing this as a departure from earlier dreams, founders and investors are recognizing it as the maturation of a vibrant, self-sustaining tech economy.

The real story is who's stepping up to the plate. Regional banks, telecommunications operators, insurers, and private equity firms that understand the unique opportunities and challenges of African markets are becoming the continent's most enthusiastic supporters of innovation. These local champions are investing in digital transformation by acquiring startups with proven products, talented teams, and valuable licenses, choosing smart acquisitions over building from scratch.

This trend reflects something deeply positive: African institutions believe in African innovation. South Africa's Lesaka invested roughly $85.9 million in payments fintech Adumo to expand its merchant network. TymeBank acquired SME financier Retail Capital, transforming it into a powerful distribution engine. Nigerian fintech Moniepoint entered Kenya's credit market by acquiring Sumac Microfinance Bank, demonstrating cross-border confidence in the continent's potential.

Even more encouraging is the emergence of African startups acquiring other African startups. The merger of Kenya's Wasoko and Egypt's MaxAB created a cross-continental retail powerhouse. Flutterwave's all-share acquisition of Mono in January 2026 integrated open banking across its expansive network. These deals show that Africa is now producing scale-ups strong enough to drive consolidation themselves, recycling capital and expertise within the ecosystem.

While funding cooled from its $3.3 billion peak in 2022 to around $2 to $3 billion annually in 2024 and 2025, this recalibration has sparked a wave of strategic consolidation. The African Private Capital Activity Report recorded 63 exits in 2024, nearly 50% higher than the previous year. By mid-2025, African tech had posted its highest half-year merger and acquisition count ever, with fintech leading the charge.

The Ripple Effect

This shift toward local buyers is creating profound positive impacts across the continent. When African institutions acquire startups, they're not just buying technology but investing in local talent, keeping innovation capital within the ecosystem, and building long-term confidence in homegrown solutions. Regional buyers understand the markets intimately and can integrate acquired companies more effectively, creating jobs and advancing digital transformation that serves African customers.

The secondary market is flourishing too, with secondaries accounting for roughly a third of exits in 2023 and 2024. Private equity funds are creating a recycling loop that returns capital to investors while keeping successful businesses growing on African soil.

Even public markets are cautiously reopening. Late 2025 saw rare tech listings in Johannesburg and Casablanca, with South Africa-linked Optasia and Moroccan fintech Cash Plus going public after years of drought. While initial public offerings remain a small percentage of exits, their return signals growing confidence.

Global players like Stripe, Equinix, Deel, and BioNTech continue to recognize Africa's potential, acquiring infrastructure and high-conviction assets that offer double-digit growth opportunities.

As 2026 unfolds, Africa's startup ecosystem is proving that success doesn't require looking overseas. The continent is building its own sustainable exit pathways, powered by local champions who understand that investing in African innovation means investing in Africa's future.