Within the fast-evolving panorama of African tech, 2023 was a yr brimming with headline-making moments.
From intersections in excessive locations to the rise and fall of startups, the emergence of latest waves, and vital acquisitions, the yr has been a rollercoaster of innovation, setbacks, and pivotal shifts reshaping the continent’s tech ecosystem.
Charles Rapulu Udoh, a tech startup lawyer mentioned 2023 was eventful for Africa’s most populous nation tech. Including that “We witnessed an enormous realignment in your complete panorama. Extra notably, the yr was formed by substantial layoffs, a hard-hitting funding crunch that noticed startups sourcing funds in various markets like bonds and debt.”
“The demise of well-funded startups can also be notable, triggering panic throughout your complete ecosystem. Startups like Zazuu, Pivo, 54Gene, and a number of others had been consigned to oblivion. Notably, there was a significant funding decline for Nigerian startups, with Egypt overtaking Nigeria in startup funding within the first half of the yr,” he mentioned.
In keeping with WeeTracker, a enterprise, startup & tech publication in Africa,
the 13 most-talked-about occasions which have captured the essence of African tech’s dynamic trajectory previously yr embody.
The appointment of a tech minister in Nigeria
Information of the appointment of ‘Bosun Tijani, CcHUB founder and a well-recognized determine in Nigeria’s tech startup and digital innovation ecosystem, because the nation’s minister of communications, innovation, and digital financial system was acquired with cheers amongst business stakeholders.
The prevailing sentiment has the appointment of an business insider and achiever as a coup for the colourful Nigerian tech scene which has, at instances, been held again by hostile coverage championed by perceived outsider appointees.
The demise of 54gene
Reviews emerged in September 2023 that 54gene, a genomics analysis firm that had raised $45 million throughout three funding rounds, is asking it quits, to a lot shock from stakeholders and observers. The startup, which has had three CEOs within the final 12 months, mentioned it “couldn’t proceed to function financially.”
Ron Chiarello, the latest CEO on the much-changed 54gene, confirmed that the once-celebrated startup is shuttering. Its demise comes after a comparatively quick existence laden with highs that some counsel additionally yielded issues that in the end cratered the corporate.
Starlink’s Africa rollout
Starlink, a satellite tv for pc web constellation operated by SpaceX, one of many extra audacious initiatives of the considerably divisive billionaire, Elon Musk, grew to become operational in a number of African international locations this yr to a lot fanfare, regardless of preliminary worrisome first impressions and regulatory disputes.
In Africa, Starlink’s broadband providers promising excessive velocity and low latency web with a moveable plug-and-play equipment, can be found in Nigeria, Kenya, Mozambique, Rwanda, Malawi and Zambia, amongst others, with many extra international locations attributable to launch providers in 2024.
Crypto ban reversal
Nigeria’s crypto scene is buzzing with pleasure following the latest lifting of the ban on cryptocurrency imposed by the Central Financial institution of Nigeria (CBN) virtually three years in the past, citing safety and fraud considerations. This game-changing transfer has set the stage for native startups to broaden and innovate within the nation’s evolving fintech panorama.
The suspension of the ban has reopened doorways beforehand closed for crypto startups, a lot of which had been despatched reeling because the regulator yanked crypto corporations off formal banking rails and the business grappled with a downturn, exacerbated by the collapse of main crypto gamers, most notably FTX whose demise was a significant blow to the business.
A brand new African tech unicorn amid a drought
In February 2023, MNT-Halan—an Egyptian startup that mixes fintech and e-commerce choices raised $400 million in fairness and debt financing to understand a post-money valuation of $1 billion which earns it unicorn standing.
The feat ends a unicorn dry spell that has gripped Africa for over a yr; the continent final minted a billion-dollar startup in November 2021, when Nigeria’s Chipper Money soaked in a Sequence C extension of $150 million.
Nonetheless, the markets have taken a flip since then and information of valuation cuts at varied startups, together with Chipper Money, means the hunt for startup unicorns isn’t highly regarded in African tech as of late.
Deception at Sprint
Sprint, a Ghanaian fintech startup that raised $86 million in a number of quick-fire raises, solely to go bust a yr after it gave the look of meteoric progress because it closed a considerable seed spherical.
Sprint went beneath in early October amid proof of mismanagement and misappropriation of funds, falsification of information, and a tradition of profligacy that its Founder Prince Boampong allegedly orchestrated.
M-KOPA goes massive
Defying the subdued fundraising local weather, M-KOPA raised a complete of $255 million in new debt and fairness from Customary Financial institution and Sumitomo Company amongst others to fund its growth in Sub-Saharan Africa, M-KOPA revealed again in Could 2023.
Based in 2011, M-KOPA began its operations in Kenya and has expanded to Uganda, Nigeria, Ghana, and South Africa most not too long ago, and says it has, so far, helped 3 million clients to entry over $1 billion in credit score to purchase gadgets like smartphones, solar energy techniques and medical insurance.
Bitmama snaps up embattled Payday
Talks of acquisition between Bitmama Inc., a blockchain funds platform, and Payday, a digital card service supplier, which had been on the entrance burner in latest months, got here to fruition earlier in December, drawing contrasting reactions.
After prior talks with different potential suitors reportedly fell by way of, Payday agreed a cut-price deal to be snapped up by the fledgling crypto startup; giving Payday, a as soon as highly-rated, fast-rising fintech that seemingly flamed out as shortly because it had risen, a brand new dwelling.
Wasoko & MaxAB becoming a member of forces
Wasoko and MaxAB, amongst Africa’s distinguished retailer-facing e-commerce gamers from Kenya and Egypt, respectively, signed a preliminary merger settlement to create a mixed firm that they are saying goals to propel the transformation of Africa’s casual retail sector.
The merger, touted as the most important in African tech historical past, comes as a lift for the sector within the midst of what has been a torrid yr dotted with fundraising difficulties and upheavals at varied startups trying to digitise the provision of on a regular basis items to retailers throughout Africa.
Flutterwave IPO
Flutterwave, the African fintech specialising in fee options, superior with its ambitions for an preliminary public providing (IPO) after being cleared of allegations of monetary misconduct in Kenya. The corporate additionally did some inside reshuffling as its IPO inches nearer, seeing some executives step away whereas hiring six new executives drawn from prime world corporations like PayPal, Binance, CashApp, Western Union, and many others.
There was some worrying information, nonetheless. In 2023, Flutterwave was reported to have suffered a significant safety breach the place hackers stole N2.9 billion ($3.7 million) from its accounts. Though the corporate has issued public denials of the problem, courtroom paperwork revealed that Flutterwave’s authorized counsel sought police help to get well funds from 107 financial institution accounts in 27 banks that allegedly acquired cash from the unlawful transfers.
Journey-hailing car financing caught up in a jam
The rent-to-own mannequin for ride-hailing providers, spearheaded by firms like Moove and LagRide, heralded as a beacon of empowerment, got here beneath scrutiny and criticism in 2023.
With drivers defaulting on funds citing a troublesome setting exacerbated by gas shortage and subsequent pump worth hikes in Nigeria, Moove resorted to impounding autos of defaulters earlier this yr. This drew discontent amongst drivers grappling with taxing every day instalments and dealing situations that hardly depart them sufficient to outlive. The ire went so far as drivers happening strike in protest.
Disaster turns boon for Nigerian fintechs
In the beginning of 2023, a sudden forex redesign by the Central Financial institution of Nigeria triggered a four-month money crunch, leaving Nigerians grappling with restricted entry to funds. A number of months later, the return of money shortage has led to chaos at ATMs and lengthy queues at banks throughout this festive season.
PoS operators, Nigeria’s model of cell cash brokers that usually allow cash-in/cash-out transactions throughout just about each neighbourhood, are sometimes fingered as culprits colluding with banks to hoard and set off money shortage at ATMs and banking halls, and exploiting this by jacking up withdrawal charges at their posts.
To eschew the trouble, Nigerians are flocking to digital fee channels and fintech startups like Moniepoint, OPay, and PalmPay, amongst others, are a number of the largest winners.
The Tingo tales
The tech and finance world has been rocked by latest developments which have positioned a controversial Nigerian businessman and obscure Nigerian subsidiaries of a purported booming enterprise empire on the receiving finish of prison proceedings.
Deeper particulars of the allegations of misconduct and fraud reveal a sham as blatant as it’s baffling, shedding additional mild on discrepancies and findings of doubtful claims first uncovered by WT and subsequently uncovered by a US funding analysis agency that had gone quick on the Nigerian-born US-listed firm that went public through a reverse merger.
Final month, the US Securities and Trade Fee (SEC) introduced costs towards Mmobuosi Odogwu Banye ( Dozy Mmobuosi), the CEO on the helm of Tingo Group and its affiliated entities, standing accused of orchestrating ‘huge fraud’ artificially inflating revenues, belongings, and purported consumer numbers.
