The 23 Most Significant Moments In African Tech In 2023
In the fast-evolving landscape of African tech, 2023 proved to be a year brimming with headline-making moments. From intersections in high places to the rise and fall of startups, the emergence of new waves, and significant acquisitions, the year has been a rollercoaster of innovation, setbacks, and pivotal shifts reshaping the continent’s tech ecosystem.
In no particular order, here’s a curated glimpse into the 23 most-talked-about events that have captured the essence of African tech’s dynamic trajectory in the past year.
News of the appointment of ‘Bosun Tijani, CcHUB founder and a familiar figure in Nigeria’s tech startup and digital innovation ecosystem, as the country’s minister of communications, innovation, and digital economy was received with cheers among industry stakeholders. The prevailing sentiment has the appointment of an industry insider and achiever as a coup for the vibrant Nigerian tech scene which has, at times, been held back by hostile policy championed by perceived outsider appointees.
Reports emerged in September that 54gene, a genomics research company that had raised USD 45 M across three funding rounds, is calling it quits, to much shock from stakeholders and observers. The startup, which has had three CEOs in the last 12 months, said it “could not continue to operate financially.”
Ron Chiarello, the most recent CEO at the much-changed 54gene, confirmed that the once-celebrated startup is shuttering. Its demise comes after a relatively short existence laden with highs that some suggest also yielded problems that ultimately cratered the company.
Starlink, a satellite internet constellation operated by SpaceX, one of the more audacious projects of the somewhat divisive billionaire, Elon Musk, became operational in multiple African countries this year to much fanfare, despite initial worrisome first impressions and regulatory disputes.
In Africa, Starlink’s broadband services promising high speed and low latency internet with a moveable plug-and-play kit, are available in Nigeria, Kenya, Mozambique, Rwanda, Malawi and Zambia, among others, with many more countries due to launch services in 2024.
Nigeria’s crypto scene is buzzing with excitement following the recent lifting of the ban on cryptocurrency imposed by the Central Bank of Nigeria (CBN) almost three years ago, citing security and fraud concerns. This game-changing move has set the stage for local startups to expand and innovate in the country’s evolving fintech landscape.
The suspension of the ban has reopened doors previously closed for crypto startups, many of which were sent reeling as the regulator yanked crypto firms off formal banking rails and the industry grappled with a downturn, exacerbated by the collapse of major crypto players, most notably FTX whose demise was a major blow to the industry.
In a feat that got the year off to a bright start and set the tone for a year where AI startups have become highly coveted, Tunisia-born enterprise artificial intelligence startup InstaDeep was acquired by Nasdaq-listed German biotech company BioNTech in a deal that could eventually be worth USD 684 M to its shareholders.
The Rwanda-based Norrsken22 drew excitement with the announcement of the close of its debut fund, the African technology growth fund at USD 205 M, eclipsing its target. The foundation launched operations in Kigali, Rwanda, in 2019 which it plans to use as a base for investing across the East and Central African region, across fintech, ed-tech, e-health, and market-enabling solutions.
The Norrsken Foundation also inaugurated Norrsken House Kigali, a 12,000-square-meter campus aimed at fostering innovation in the country and across the continent.
In February, MNT-Halan—an Egyptian startup that combines fintech and e-commerce offerings— raised USD 400 M in equity and debt financing to realize a post-money valuation of USD 1 B which earns it unicorn status.
The feat ends a unicorn dry spell that has gripped Africa for over a year; the continent last minted a billion-dollar startup in November 2021, when Nigeria’s Chipper Cash soaked in a Series C extension of USD 150 M. Nevertheless, the markets have taken a turn since then and news of valuation cuts at various startups, including Chipper Cash, means the quest for startup unicorns isn’t very popular in African tech these days.
We at WT broke perhaps the most talked-about story in African tech this year, authored by yours truly, publishing findings from investigations into the fall of Dash, a Ghanaian fintech startup that raised ~USD 86 M in multiple quick-fire raises, only to go bust a year after it gave the impression of meteoric growth as it closed a substantial seed round.
In what proved to be consequential reporting from us, Dash went under in early October amid evidence of mismanagement and misappropriation of funds, falsification of data, and a culture of profligacy that its Founder Prince Boampong allegedly orchestrated. The revelations we uncovered sparked calls for a reset and a reckoning in African tech over how startups are run and how investors approach deals.
Defying the subdued fundraising climate, M-KOPA raised a total of USD 255 M in new debt and equity from Standard Bank and Sumitomo Corporation among others to fund its expansion in Sub-Saharan Africa, M-KOPA revealed back in May..
Founded in 2011, M-KOPA started its operations in Kenya and has expanded to Uganda, Nigeria, Ghana, and South Africa most recently, and says it has, to date, helped 3 million customers to access over USD 1 B in credit to buy items like smartphones, solar power systems and health insurance.
Talks of acquisition between Bitmama Inc., a blockchain payments platform, and Payday, a virtual card service provider, which had been on the front burner in recent months, came to fruition earlier this month, drawing contrasting reactions.
After prior talks with other potential suitors reportedly fell through, Payday agreed a cut-price deal to be snapped up by the fledgling crypto startup; giving Payday, a once highly-rated, fast-rising fintech that seemingly flamed out as quickly as it had risen, a new home.
In February, Partech, the global technology investment firm, announced the first closing of its Partech Africa II fund at ~USD 262 M, already above the target fund size, signalling loads of dry powder remains available for African innovators despite the venture capital downturn..
Partech Africa is headquartered in Dakar, Senegal, and focuses on Series A and B equity rounds in startups which are using technology to transform areas such as financial services, commerce, education, mobility, and healthcare.
One of the most prominent names in the so-called Silicon Savannah went out of business back in August. Sendy, a Kenyan logistics startup that enabled retailers to purchase FMCGs directly from manufacturers, among other services, shut down after failing to find a buyer as struggles mounted.
The company ran out of funds two months prior, per reports, and had been scrambling to cut costs for the past year to remain afloat.
Last year, Techstars launched its Accelerator Program in Lagos with ARM Labs Lagos, investing in 12 startups like alphabloQ, peppa.io, CDCare, and Keza Africa. This year, just a couple of weeks ago, the global accelerator, now considered among the most active investors in African tech, backed another 12 African startups for the program’s second cohort. Africa now represents 40 percent of Techstars’ investments, highlighting their increased commitment to the continent with a base in Lagos.
Wasoko and MaxAB, among Africa’s prominent retailer-facing e-commerce players from Kenya and Egypt, respectively, signed a preliminary merger agreement to create a combined company which they say aims to propel the transformation of Africa’s informal retail sector.
The merger, touted as the largest in African tech history, comes as a boost for the sector in the midst of what has been a torrid year dotted with fundraising difficulties and upheavals at various startups looking to digitise the supply of everyday goods to retailers across Africa.
Flutterwave, the poster child of African fintech specializing in payment solutions, advanced with its ambitions for an initial public offering (IPO) after being cleared of allegations of financial misconduct in Kenya. The company also did some internal reshuffling as its IPO inches closer, seeing some executives step away while hiring six new executives drawn from top global firms like PayPal, Binance, CashApp, Western Union etc.
There was some worrying news, however. Earlier this year, Flutterwave was reported to have suffered a major security breach where hackers stole NGN 2.9 B (USD 3.7 M) from its accounts. Although the company has issued public denials of the issue, court documents revealed that Flutterwave’s legal counsel sought police assistance to recover funds from 107 bank accounts in 27 banks that allegedly received money from the illegal transfers.
Founders Factory Africa secured an additional USD 114 M back in August from Mastercard Foundation and Johnson & Johnson to scale its model to better serve founders across the African tech ecosystem. Founders Factory, which originally launched in London in 2015 and has already built more than 70 startups, launched African operations in Johannesburg in 2018, from where it plans to design, build and scale 140 disruptive tech startups across Africa.
The turmoil at Float; a Ghanaian business banking startup backed by big-name investors such as Tiger Global and Y Combinator, and revelations of questionable handling of funds on the part of its Founder and CEO, Jesse Ghansah, drew outrage and commentary across African tech, following reporting published here on WT.
The allegations levied against Ghansah, whose current whereabouts are a bit sketchy according to aggrieved clients, are a combination of telex forgery, wire fraud, and misappropriation of funds, with millions of dollars in clients’ deposits missing.
Earlier this month, Jumia, Africa’s leading e-tailer, pulled the plug on Jumia Food, its food delivery arm; shuttering the operation in seven countries where the unit operates. The move, set to conclude by year-end, aims to bolster the company’s primary focus on advancing its online retail business, the company said.
It’s an abrupt end to a platform considered the most established on-demand food delivery service on the continent, casting further doubt on a category deemed to be notoriously hard to pull off profitably. Bolt Food’s recently announced exits from the Nigerian and South African markets amid struggles, underscores the challenging nature of the industry. Meanwhile, surviving players like the heavily funded multinational Glovo and Chowdeck; a Y Combinator-backed upstart on a growth tear, are doubling down.
Peter Njonjo, the CEO of Twiga Foods, an e-commerce and food distribution company, took a break from the company. Njonjo is taking a six-month sabbatical, stepping away from the day-to-day due to personal reasons following a hectic period, according to a statement issued by the company.
Twiga, founded in 2013 by Njonjo and Brooke, secured undisclosed funding in late November from existing investors despite facing a debt collection lawsuit from cloud services vendor Incentro Africa worth over USD 200 K, capping off a turbulent period marked by layoffs and restructuring efforts effected to stem a worrisome rut.
The rent-to-own model for ride-hailing services, spearheaded by companies like Moove and LagRide, heralded as a beacon of empowerment, came under scrutiny and criticism in 2023.
With drivers defaulting on payments citing a difficult environment exacerbated by fuel scarcity and subsequent pump price hikes in Nigeria, Moove resorted to impounding vehicles of defaulters earlier this year. This drew discontent among drivers grappling with taxing daily instalments and working conditions that barely leave them enough to survive. The ire went as far as drivers going on strike in protest.
In April, there was excitement in the air as SmileID (formerly Smile Identity), a KYC compliance and ID verification partner for many African fintechs and businesses, acquired Inclusive Innovations, the parent company of Appruve, a Ghanaian developer of identity verification software, setting up an important exit in a landscape increasingly yearning for such liquidity events.
While the terms of the deal were not disclosed, sources close to the matter say the cash-and-stock deal was worth “not more than USD 20 M”, per TechCrunch.
At the start of 2023, a sudden currency redesign by the Central Bank of Nigeria triggered a four-month cash crunch, leaving Nigerians grappling with limited access to funds. Several months later, the return of cash scarcity has led to chaos at ATMs and long queues at banks during this festive season.
POS operators, Nigeria’s version of mobile money agents that typically enable cash-in/cash-out transactions across virtually every neighbourhood, are often fingered as culprits colluding with banks to hoard and trigger cash scarcity at ATMs and banking halls, and exploiting this by jacking up withdrawal fees at their posts. To eschew the hassle, Nigerians are flocking to digital payment channels and fintech startups like Moniepoint, OPay, and PalmPay, among others, are some of the biggest winners.
The tech and finance world has been rocked by recent developments that have placed a controversial Nigerian businessman and obscure Nigerian subsidiaries of a purported booming business empire on the receiving end of criminal proceedings.
Deeper details of the allegations of misconduct and fraud reveal a sham as blatant as it is baffling, shedding further light on discrepancies and findings of dubious claims first uncovered by WT and subsequently exposed by a US investment research firm that had gone short on the Nigerian-born US-listed company that went public via a reverse merger.
This month, the US Securities and Exchange Commission (SEC) brought charges against Mmobuosi Odogwu Banye (AKA Dozy Mmobuosi), the CEO at the helm of Tingo Group and its affiliated entities, standing accused of orchestrating ‘massive fraud’; artificially inflating revenues, assets, and purported user numbers.
