This Week in African Tech 🌍

Hey 👋🏽, 

African tech funding took a nosedive in 2024—down over 50% to just $1.1B. Turns out, the global capital crunch isn’t just a Wall Street problem.

Startups are feeling the squeeze, investors are pulling back, and M&A deals? Let’s just say they’re moving slower than Lagos traffic on a Monday morning. 😬

But it’s not all doom and gloom—there’s still action in fintech, AI, and even some unexpected courtroom drama (looking at you, Domino’s 🍕).

We’ll get to the roundup in a sec.

But before we do, we have an announcement.

Now, on to this week’s roundup….

Tech Roundup

• Funding for African tech startups dropped over 50% to $1.1B in 2024 as the global capital crunch hit the continent. Just 200 startups raised funding—down from 406 in 2023—while investor activity fell 35%, and M&A deals slowed.

• Nigerian logistics startup Chowdeck is cutting 86 contract staff after rapid expansion made its operations team unsustainable. The startup grew from 20 to 120 staff in a year and now aims to scale fivefold in 2025 with a leaner structure.

• South African startups Agrilogiq and Locstat have become NEC XON vendors after completing South Africa’s first Japan International Cooperation Agency (JICA) NINJA Accelerator. The program fosters collaboration between SA startups and Japanese companies.

• A Federal High Court in Abuja has ordered Eat'n'Go, the franchise owner of Domino’s Pizza and Cold Stone Creamery in Africa, to pay $1,997 to a customer for sending unsolicited marketing messages.

• Canal+ has extended its bid for MultiChoice by six months due to South Africa’s Electronic Communications Act, which restricts foreign ownership in broadcasting licenses.

• Namibia’s telecom sector generated over $43M in data revenue in Q3 2024, with data services now making up 70% of total mobile revenue—up from 46% in 2018. The shift, driven by rising smartphone adoption and affordable data plans, has seen data surpass voice as the primary revenue stream.

• Ride-hailing company Bolt has confirmed that it fully covers passenger discounts, ensuring drivers receive the full fare before commission. This comes amid tensions, with drivers claiming discounts cut into their earnings and passengers reporting being pressured to pay full fares despite platform promotions.

Deal Roundup

• SA agri-tech startup Khula has raised $6.8M in a still-open Series A round backed by Absa Bank and PepsiCo. It plans to extend the round later this year to fuel further growth.

• Egyptian fintech Fawry has invested $1.6M for majority stakes in Dirac Systems, Virtual CFO, and Code Zone. The move strengthens Fawry’s ecosystem and supports Egypt’s digital transformation.

• LoftyInc Capital has closed the first round of its third fund to back seed-stage tech startups across Africa. At least 30% of the fund will target East, North, and Francophone Africa. LoftyInc will remain sector-agnostic, with a focus on healthtech, retail, deep tech, and AI.

• Kenyan “re-commerce” startup Badili has raised $400K in debt funding from Proparco to expand its refurbished smartphone offering, reduce e-waste and improving device affordability.

• Egyptian online car marketplace Hatla2ee has been acquired by UAE-based Dubizzle Group for an undisclosed amount. The deal will enhance Hatla2ee’s platform with Dubizzle’s tech and resources.

• Egypt’s Widebot has raised $3M in pre-Series A funding to build an Arabic large language model (LLM). The round was led by Keheilan Asset Management II.

 Other Events and Opportunities

• Talent Safari, a community for Africa’s top mid-level startup professionals, is now helping companies hire from its exceptional talent pool. Employers looking to recruit the best talent can fill out this form to get started. Haven’t joined Talent Safari yet? There’s still time to sign up!

• On the 15th of March, Founders Connect is hosting its Live in Nairobi event for founders, tech workers, and investors. Register here for an exclusive day of conversation about innovation, impact, and scaling businesses across Africa. There’s also up to $12,000 in funding and resources up for grabs.

• If you’re an early-stage or experienced professional looking to break into VC, you can now apply to the Dream VC 2025 Cohort. The fellowship reskills professionals into VC roles over 4 - 5 months. Apply here before March 31st.

• The second edition of Payd Founders Game Night is happening on Friday, March 28th, at Antler, ABC Place Nairobi, starting at 7 PM. Get ready for Maverick vibes, high-stakes fun, and an unforgettable night. Secure your spot here.

• Applications are open for the sixth edition of the OceanHub Africa accelerator, a 12-month program supporting up to 24 high-impact, for-profit startups dedicated to ocean conservation. The program will run in two intakes, March and July, with applications reviewed on a rolling basis. Applications are open here.

And that's a wrap!

That’s it for this week. See you on Wednesday 😃 

Cheers,

The Tech Safari Team

PS. refer five readers and you’ll get access to our private community. 👇🏾

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