African Tech Merger And Acquisition Hits Record High in H1 2025 as Fintech Leads Strategic Acquisitions

Merger and acquisition (M&A) activity in Africa’s tech ecosystem surged to record levels in the first half (H1) of 2025, underscoring the sector’s growing maturity and appetite for consolidation.

According to “The State of Tech in Africa” report by Tech Cabal Insights, a total of 29 M&A deals were recorded in H1 2025, the highest ever for any first-half period, representing a 45% increase from the 20 deals logged in H1 2024 and a 53% rise compared to H1 2023.

The sharp growth highlights that strategic acquisitions are becoming a key pathway for established companies to expand market share, acquire technology, and access talent. As the funding environment stabilizes, well-capitalized startups and corporations alike are increasingly relying on acquisitions to accelerate growth and solidify market leadership.

Fintech continued to dominate as the most active sector, accounting for 13 of the 29 deals (45%). E-commerce followed with six deals, as larger players moved to acquire innovative startups to quickly onboard new technologies and customers. The deals reflected a mix of acquisitions for market entry and takeovers of struggling companies seeking a lifeline.

Speaking on this, Matthew Davis, CFA co-CEO and Managing Partner Renew Capital said, “Many good, early-stage fintechs will struggle to raise larger rounds and become good
acquisition targets for larger VC-backed companies as they focus on aggressive expansion”.

Since early 2023, M&A activity has been broadly distributed across Africa’s key regions. West Africa and Southern Africa each recorded 24 deals over this period, while North and East Africa followed closely with 20 apiece. Notably, eight of the 29 H1 2025 deals involved acquisitions outside of Africa, underscoring the global ambitions of African startups.

North Africa emerged as the most active region in H1 2025, recording eight deals, followed by East Africa with seven and West Africa with six. Egypt led as the top acquisition target, with eight Egyptian startups acquired during the period. Kenya and Nigeria followed with seven and five deals respectively, reinforcing their positions as dynamic startup markets.

Prominent transactions included Stitch’s acquisition of ExiPay to expand into in-person payments, Moove’s acquisition of Brazil’s Kovi to further global ambitions, and LemFi’s acquisition of Irish currency exchange Bureau Buttercrane to strengthen its European presence. Other notable deals saw Peach Payments acquire West African payments gateway PayDunya, Moniepoint expand into Kenya with the acquisition of Sumac Microfinance Bank, and MaxAB-Wasoko acquire Egypt’s Fatura to enhance its e-commerce footprint.

Industry observers noted that both aggressive expansion and market clean-up are likely to drive future M&A activity. As funding gaps persist from pre-seed to later-stage rounds, many early-stage fintechs may struggle to secure growth capital, making them attractive acquisition targets for larger, VC-backed firms seeking licenses, customer bases, and alternative datasets.

Notably, South Africa and Egypt remain the continent’s top M&A hotspots, and experts expect these markets to retain their dominance. While some African startups are venturing abroad for acquisitions, the primary focus is anticipated to remain within Africa, given the continent’s untapped opportunities and competitive advantages. Nigeria and Kenya bolstered by significant early-stage investment over the past five years, are also projected to experience rising cross-border acquisition activity, particularly between startups in these two ecosystems.

The record-breaking M&A activity in H1 2025 reflects a maturing African tech ecosystem, where strategic acquisitions are increasingly viewed as essential tools for scaling, diversifying revenue streams, and consolidating market power.