2024 was a year packed with some exciting moves in the tech world. From Uber’s first African investment to Amazon and Temu shaking up Africa’s e-commerce scene and Africa minting two new unicorns in the last quarter of the year – there’s been a lot to talk about.
With new players entering the market and established companies adapting to the challenges of a dynamic region, it’s been a year of growth, innovation, scaling back, and competition.
Let’s take a look at the biggest tech stories that defined 2024.
1. Mercury shuts out African startups
African startups faced a significant setback in July when Mercury, a US-based digital bank, announced it would terminate users’ accounts in 13 African countries by August. For a number of African founders, this news was a harsh blow. Mercury had become a crucial partner for startups, providing access to US dollar accounts and enabling seamless cross-border transactions.
This decision wasn’t isolated; it was part of broader restrictions affecting 37 countries, driven by increased regulatory scrutiny. Mercury cited compliance concerns tied to the Financial Action Task Force (FATF) Greylist, which flags countries like Nigeria for deficiencies in anti-money laundering and terrorism financing regulations. Additionally, Mercury faced pressure in the US, where federal investigations into its practices raised questions about its onboarding of high-risk clients.
Ironically, this decision followed a period of remarkable growth for Mercury. After the collapse of Silicon Valley Bank (SVB) in 2023, the second-largest bank failure in US history, Mercury stepped in as a saviour for startups globally. The fintech quickly launched Mercury Vault, a product offering enhanced FDIC insurance, and onboarded over 26,000 new customers within four months, bringing in $2 billion in deposits. This rapid expansion earned Mercury a solid reputation in the fintech space but also exposed it to heightened regulatory scrutiny.
With over 100,000 business customers in nearly every country, Mercury’s global reach became both its strength and its Achilles’ heel. Serving startups in high-risk regions amplified its compliance risks, prompting the decision to pull back.
This challenge presents an opportunity for homegrown fintech companies like Raenest, Verto, and Leatherback to rise to the occasion. By filling the gap, these local players could provide the essential banking services African startups need to thrive.
Read our breakdown of this story
2. Nigeria’s Cybersecurity Levy
In May, Nigerians were outraged when the Central Bank of Nigeria (CBN) announced a drastic increase in the cybersecurity levy on electronic transactions, raising it from 0.005% to 0.5%. This meant a ₦100,000 transfer would attract a ₦500 fee, sparking fears it would discourage digital payments and hurt financial inclusion.
The levy applied to most electronic transactions but excluded salary payments, loan disbursements, and specific bank transfers. While the CBN argued the funds were essential for combating cyber threats, widespread backlash led the Bola Tinubu administration to suspend the policy indefinitely just days before its implementation.
This suspension provided temporary relief for Nigerians already burdened by various transaction charges, including transfer fees, stamp duties, SMS charges, and VAT. Many questioned the transparency of how the funds would be utilised and whether the levy was necessary.
But the story didn’t end there. By September, the levy returned, this time at its original rate of 0.005%. The CBN included it in its 2024-2025 fiscal guidelines, framing it as crucial for strengthening cybersecurity. Though the reduced rate eased tensions, questions about the levy’s transparency and necessity linger.
3. The “Amazon of Africa” narrows its focus
In October, Jumia made a bold move: The e-commerce giant announced it would close operations in South Africa and Tunisia by the end of 2024. The goal was to focus on markets with higher growth potential and, hopefully, profitability, which has remained out of reach.
The numbers paint the picture. South Africa and Tunisia contributed only 3.5% and 2.7% of total orders, respectively, and 4.5% and 3.0% of gross merchandise value (GMV). So, Jumia is pulling back and doubling down on its strongest markets, including Nigeria, Kenya, Egypt, and Morocco.
It’s been a tough year for Jumia. In Q2 2024, the depreciation of currencies in key markets like Nigeria and Egypt led to a drop in total order value, which fell to $170 million. Revenue also took a hit, dropping 25% from the previous quarter and 17% year-on-year. By Q3, Jumia’s revenue had further declined to $36.4 million.
But Jumia isn’t throwing in the towel. Over the past year, the company has cut costs by shutting down Jumia Foods, raised $100 million through share sales, and beefed up its logistics and supplier networks.
With its exit from South Africa and Tunisia, Jumia will now operate in nine countries, betting big on regions like West and East Africa. Will narrowing its focus help Jumia finally crack the profitability code? Let’s see how this plays out.
4. Amazon Prime scales back on its African ambition
When Amazon Prime entered Africa in 2016, it aimed to rival Netflix and Showmax, quickly positioning itself as a major player in the region’s streaming market. By 2021, Prime Video expanded its efforts, signing partnerships with local production studios and setting up dedicated teams in Nigeria and South Africa. The platform even rolled out its first African original movie, Gangs of Lagos, in 2022, signalling its ambitious plans for the continent.
However, in January 2024, those ambitions took a hit. Amazon Prime announced it was scaling back on local content production in sub-Saharan Africa, North Africa, and the Middle East, citing a renewed focus on Europe. Approved shows will still roll out, but no new local projects will be greenlit in these regions.
This decision likely stemmed from fierce competition with Netflix and Showmax, who dominate Africa’s streaming landscape. Showmax, in particular, surged ahead in 2023, claiming 40% of the market and overtaking Netflix.
While Amazon Prime was projected to grow its sub-Saharan customer base from 575,000 in 2021 to 1.9 million by 2026, its retreat highlights the challenges of operating in a market where streaming penetration remains low and competition is fierce.
Amazon Prime isn’t the only one facing challenges. Earlier this month, rumours surfaced about Netflix possibly exiting the Nigerian market after renowned Nigerian filmmaker Kunle Afolayan mentioned that the streaming giant was decommissioning some movie projects. While Netflix quickly denied the reports, questions still linger about its long-term strategy in Nigeria.
5. The Nigeria vs Binance saga
What started as a routine regulatory meeting in February quickly turned into a dramatic saga for Binance executives Tigran Gambaryan and Nadeem Anjarwalla. Instead of discussing compliance, the pair were arrested by Nigeria’s Department of State Security (DSS) amid an investigation into alleged market manipulation. Their passports were seized, and authorities pointed to a staggering $26 billion allegedly moved through Binance Nigeria in just one year.
Central Bank Governor Olayemi Cardoso linked the missing $26 billion to lost tax revenues, sparking a bitter clash between Nigeria and the crypto giant. Gambaryan, a former IRS agent and Binance’s financial crime compliance chief became a focal point of international attention, with U.S. politicians calling for his release. Reports soon followed that he had collapsed in court and contracted malaria while imprisoned in the notorious Kuje Prison, intensifying the pressure for his release. Despite a court ruling for his transfer to a hospital, he remained locked up in grim conditions.
In June, the Nigerian Federal Inland Revenue Service (FIRS) dropped tax evasion charges against the executives, but its focus shifted squarely onto Binance. Yet Gambaryan’s detention continued. Finally, in October, the Nigerian government cleared him of money laundering charges and ordered his release. However, the Economic and Financial Crimes Commission (EFCC) pressed on with its case against Binance, but it has excluded Gambaryan from the proceedings.
6. Moniepoint becomes a unicorn
Moniepoint, the Nigerian fintech that has quickly become a household name in Africa, hit a major milestone earlier this year. The company raised $110 million in a Series C funding round, bringing its valuation to an impressive $1 billion. This achievement earned Moniepoint its spot among the exclusive group of African unicorns, solidifying its place as one of the continent’s leading fintech players.
Led by Development Partners International (DPI), the funding round also saw participation from a star-studded list of investors, including Google’s Africa Investment Fund, Verod Capital, QED Investors, Lightrock, and Novastar Ventures, among others. This latest capital injection builds on Moniepoint’s previous success, which saw a $50 million raise in 2023.
Founded in 2015 as TeamApt, Moniepoint initially focused on providing infrastructure and payment solutions for banks. But the company’s pivot to business banking proved to be a game changer. Now, Moniepoint processes over 800 million transactions a month, worth more than $17 billion. Its growth has been meteoric, with revenue increasing by over 150% CAGR in recent years. The fintech recently expanded into personal banking, achieving an incredible 20x growth in customers in just one year.
With the new funding, Moniepoint plans to accelerate its growth further across Africa. It aims to build an all-in-one platform that offers digital payments, banking, foreign exchange, credit, and business management tools for African businesses of all sizes. In May 2024, the Financial Times named Moniepoint one of Africa’s fastest-growing fintech companies for the second consecutive year.
7. Wasoko and MaxAB complete Africa’s largest tech merger
Earlier this year, Africa’s tech scene witnessed a landmark moment with the merger of Wasoko and MaxAB, creating the continent’s largest B2B eCommerce player. Announced in December 2023, this merger didn’t happen until August this year, when it combined Wasoko’s strong foothold in East Africa with MaxAB’s dominance in North Africa.
While the merger was celebrated as a game-changer, it wasn’t without its hurdles. Both companies had to navigate complex regulatory challenges across several countries. Internal restructuring was also required to align operations and create a seamless, unified approach.
Despite the obstacles, the merger was driven by a shared vision: to enhance supply chain efficiency and improve the availability of goods across Africa. This consolidation not only strengthened both companies’ market positions but also opened up fresh growth opportunities. The combined entity now boasts Africa’s largest network of B2B informal retailers, with over 450,000 merchants across Kenya, Tanzania, Rwanda, Egypt, and Morocco, and a reach that touches more than 65 million consumers.
Wasoko, formerly Sokowatch, is a platform that enables retailers to restock products anytime via a mobile app, offering free same-day delivery and financing options through a proprietary credit scoring program. The company operates in Kenya, Tanzania, and Rwanda. MaxAB, on the other hand, pioneered B2B e-commerce in MENA, helping underserved merchants in Egypt and Morocco grow their businesses.
But just two months after the merger, the newly formed company faced a surprise exit. Mohamed Ben Halim, MaxAB’s co-founder and COO, stepped down, leaving Daniel Yu and Belal El-Megharbel to lead the company.
8. Uber makes first African investment
In March, Moove, the pan-African mobility fintech startup, closed a $100 million Series B funding round, bringing its total equity funding to $250 million. This round was particularly exciting as ride-hailing giant Uber joined as an investor for the first time in Africa, further strengthening their partnership. Uber is Moove’s largest car financing and vehicle supply partner, with operations in both Africa and India.
With this new capital injection, Moove’s valuation surged to $750 million, signalling major growth ahead. The funding round saw participation from prominent investors like The Latest Ventures, AfricInvest, Palm Drive Capital, Triatlum Advisors, and Future Africa. Moove, founded in Lagos in 2020 by Jide Odunsi and Ladi Delano, has big plans to expand. The company, which currently operates in Nigeria, South Africa, Ghana, the UK, India, and the UAE, aims to enter 16 new markets by the end of 2025.
A key part of Moove’s strategy moving forward is sustainability. The company plans to introduce over 20,000 electric vehicles (EVs) to Uber’s platform in India, supporting Uber’s goal of a zero-emission fleet by 2040. Moove’s innovative vehicle financing model uses alternative credit scoring and productivity data, helping transportation business owners across ride-hailing, logistics, and delivery services get access to new vehicles.
9. Temu and Amazon shake up the African market
Africa’s e-commerce scene became much more competitive with the entry of two global heavyweights: Amazon and Temu.
Amazon, the e-commerce giant, launched its online marketplace in South Africa, allowing customers to shop from a wide variety of local and international brands. This move was part of Amazon’s much-anticipated expansion into Africa, first announced in June 2022. Despite delays, Amazon’s entry marked a major milestone for South Africa, a key market for its broader African ambitions.
On the other hand, Temu, the Chinese e-commerce platform owned by PDD Holdings, quickly made waves by entering both South Africa and Nigeria. After launching in South Africa in January 2024, Temu wasted no time moving into Nigeria, where it began aggressively marketing its low-cost goods. Temu’s model aligns with Nigeria’s current economic climate, where inflation and a depreciating currency have made affordability a top priority for shoppers.
The timing couldn’t be more strategic. Nigeria, Africa’s most populous country with over 200 million people, presents a vast opportunity for Temu. Its young, tech-savvy demographic, coupled with rapid growth in the e-commerce sector, made it an ideal target. Temu’s ultra-low pricing and massive ad spend, reportedly $1.3 billion on Meta ads in 2023, have allowed it to quickly become one of the most downloaded apps in Nigeria.
In South Africa, Temu’s entry disrupted the local market as well. The company, along with Chinese rival Shein, undercut established e-tailers like Takealot, which struggled with the competition and eventually sold its fashion unit, Superbalist. Jumia also felt the pressure, exiting South Africa amid fierce competition from foreign players.
10. Tyme Group becomes Africa’s 9th unicorn
Tyme Group ended the year on a high note, raising a $250 million Series D round to become Africa’s newest unicorn, valued at $1.5 billion. The round was led by Nu Holdings, the parent company of Nubank, which invested $150 million, with M&G Catalyst and other existing investors contributing $50 million each.
Founded in 2019 and headquartered in Singapore, Tyme Group operates a hybrid digital banking model that blends online services with physical touchpoints. Its flagship brand, TymeBank, in South Africa, has become a major success, with over 10 million users. The company also operates GoTyme in the Philippines, which has attracted more than 5 million users since launching in 2022.
With $100 million in customer deposits and $600 million in financing extended to small businesses, Tyme’s growth has been impressive. This Series D funding brings Tyme’s total raised to more than $600 million, positioning the company for a potential IPO by 2028.
Tyme’s rise follows that of other African fintech companies. The company now joins the ranks of Africa’s unicorns, including Nigeria’s Moniepoint, which reached a billion-dollar valuation earlier this year. As Tyme continues to expand across markets, including its plans for an Indonesian launch by 2024, it solidifies its place as a major player in global digital banking.
