Global Ambitions Grow as Expansion Pace Holds Steady for African Startups in H1 2025

The first half of 2025 marked a pivotal moment for African startups, as ambitions shifted firmly toward global horizons.

According to “The State of Tech in Africa” report by Tech Cabal insights, out of 20 documented expansion moves by startups, nearly half (9) extended beyond Africa’s borders, a clear indication that African companies are now setting their sights on international markets in pursuit of long-term growth and resilience.

Within the continent, expansion strategies favored regional dominance over single-country plays. Startups launched operations across multiple African countries (5 expansions), while 4 targeted new markets within West Africa. The trend highlights a strong drive toward building pan-African influence before or alongside international ventures.

Nigeria and Egypt, two of the continent’s most mature and well-funded startup ecosystems continued to serve as the springboards for broader expansion. Nigerian startups accounted for 5 of the expansions in H1 2025, with Egyptian counterparts following closely with 4. These figures underscore how companies rooted in strong domestic markets and backed by robust funding are leveraging local traction to scale beyond their borders.

The overall pace of expansion remained steady compared to the previous year, with 10 expansions recorded in both Q1 and Q2 of 2025. This total of 20 represents a modest increase from the 19 expansions seen during the same period in 2024, reflecting a measured, sustainable approach to growth rather than aggressive land grabs.

Fintech stood out as the most expansion-driven sector, responsible for 9 of the 20 total expansions. Logistics and transport followed with 4 expansions, signaling a strong appetite for replicating scalable, operations-heavy models across new regions.

Notable expansion moves in H1 2025 include:

• Moove (Nigeria): Acquired Brazil’s Kovi to enter Latin America.

• LemFi (Asia to Europe): Expanded into the UK and Germany after operating in China, India, and Pakistan.

• Raenest (Africa to US and Egypt): Secured Series A funding to enter the U.S. and North African markets.

• Gozem (Togo to West and Central Africa): Expanded vehicle financing and digital banking services.

• PalmPay (Nigeria to South Africa, Côte d’Ivoire, Uganda, and Tanzania): Broadened its fintech footprint across four new African markets.

• Peach Payments (South Africa to Senegal): Entered Francophone West Africa through a partnership with PayDunya.

• Craydel (Kenya to Rwanda): Continued its Pan-African edtech push, now operating in five countries.

• AURA (South Africa to the US): Raised $14.6 million to support its U.S. expansion plans.

Commenting on these expansion trends, Dotun Olowoporoku, Managing Partner at Ventures Platform, explained that the surge in global expansion is not a departure from Africa but a strategic adaptation to new realities. In his words, “what we’re seeing isn’t an
abandonment of Africa, but a strategic response to evolving challenges and opportunities”.

He identified three primary drivers behind this outward shift, which includes the following;

First, currency devaluation in key African markets like Nigeria and Kenya has led founders to seek financial stability by entering dollarized economies, mitigating the risks of foreign exchange volatility.

Second, many African startups are addressing global problems such as access to credit or cross-border payments making international growth a logical step.

Third, the rise of African diaspora talent has created cross-border networks that facilitate market entry, provide cultural insights, and enable smoother transitions into new geographies.

While global expansion introduces complex regulatory and cultural challenges, Olowoporoku noted that the long-term benefits include enhanced brand credibility, diversified revenue streams, and increased investor appeal. These expansions signal a maturing ecosystem with startups poised to compete internationally while still rooted in solving homegrown problems.

Fintech’s dominance in the expansion space is no coincidence, Olowoporoku added. The sector forms the backbone of digital economies, offering payment infrastructure and credit solutions that other industries depend on. He argued that fintech is not just foundational, it is essential. Until widespread financial access challenges are resolved, fintech will remain at the forefront, enabling broader sectoral growth and powering innovation in healthtech, e-commerce, and beyond.

In summary, African startups in H1 2025 are not retreating from the continent but stepping onto the global stage with purpose. Their expansion strategies, particularly in fintech, reveal a calculated effort to build durable, world-class businesses that can scale sustainably, weather macroeconomic shocks, and lead Africa’s digital transformation from both within and beyond its borders.