2024 presented significant challenges for founders operating in a dramatically altered landscape compared to 2021 when capital was readily available.
Condia spoke to 11 leaders in the ecosystem about the year – wisdom they gained from hardship, and visions that are still as clear as day, even through uncertainty.
As we round up 2024, here are their predictions of what the ecosystem will be in 2025.
Femi Oriowo, Carbin Africa CEO and co-founder
By 2025/26, I predict a vibrant rebound in Africa’s tech ecosystem.
With global interest rates expected to drop in the coming months, this could lead to increased liquidity, investor activity, and growth across the sector. Additionally, we are likely to witness a surge in mergers, acquisitions, and exits, signalling a maturing market.
Ayobami Olajide, Senior Associate at Endeavor
I think there would be more fundraising announcements (emphasis: on mid-big tickets transactions). The rationale behind this is that if you align the thesis of Venture capital funds that have dry powder*, it is only logical that we should be expecting more fundraise activity happening for mature seed-stage companies either raising round extensions and bridge financing, or the next round depending on what the current metrics profile of the particular startup supports.
Consistent with the ecosystem’s consolidation phase, we would also see more Mergers and acquisitions (M&A). The macroeconomic pressures will impact very early stage startups in their operations and fundraising. Investors are now more cautious with valuation and the multiples being applied to companies seeking investments. VCs want to see evidence of traction and profitability, with an emphasis on the unit economics of startups.
*There is significant dry powder in the ecosystem waiting to be deployed—Partech and Norrsken have just raised mega funds of $300M and $200M, respectively. International outfits like Breega have launched a $75M Africa fund.
Read also: How the 2023 predictions by African investors turned out
Davidson Oturu, General Partner Nubia Capital
The tech landscape in 2025 is poised for strategic growth as funding gradually rebounds. With macroeconomic conditions stabilizing, I predict we’ll see investors being more selective, favoring startups with proven business models, clear unit economics, and a strong path to profitability. This will push founders to focus on building sustainable solutions rather than chasing hyper-growth.
In Africa specifically, sectors like fintech, health tech, and agritech will continue to lead the way, driven by the continent’s unique challenges and opportunities. I also expect the adoption of AI-driven solutions to accelerate across industries, from personalized financial services to predictive healthcare.
Another key trend will be deeper collaborations between startups and traditional players, such as banks and telecom companies. Open banking and embedded finance, in particular, will gain traction, creating seamless and inclusive financial ecosystems.
Lastly, regulatory clarity will play a significant role. Governments and regulatory bodies that adapt to support innovation while ensuring consumer protection will catalyse significant growth in their tech sectors.
Jonah Nwokpoku, Co-founder, SquirrelPR
Funding dynamics have shifted significantly. The era of speculative ‘hot money’ is essentially over, as many investors are reassessing risks following the failure of numerous VC-backed ventures with unvalidated markets. However, I expect fintechs to continue attracting disproportionate funding in 2025, supported by their resilience and innovation. Additionally, there is likely to be a rise in funding rounds led by domestic VCs, especially with the emergence of platforms such as Accelerate Africa, led by Iyin Aboyeji, reflecting growing local investor confidence. Startups in sectors like edtech, logistics, and marketing tech that have demonstrated strong market validation will also have greater opportunities to close deals.
David Lanre Messan, CEO at First Founders
Predictions for 2025 are quite exciting, especially with the gradual rebound in funding. Here are a few key areas to watch out for:
- Artificial Intelligence (AI): Expect AI to become even more pervasive, with applications in healthcare, finance, and education.
- Extended Reality (XR): XR will continue to transform industries like gaming, entertainment, and retail.
- Quantum Computing: Breakthroughs in quantum computing will unlock new possibilities in fields like cryptography, optimisation, and materials science.
- Sustainability Tech: Technologies focused on sustainability will gain traction, including renewable energy, eco-friendly materials, and carbon capture solutions.
Oladimeji Timothy, Country Representative, inDrive
EV and the infrastructures to support it will take another leap in Nigeria. This will force relevant tech companies to have a sustainability strategy or approach. Growth of marketplace apps like Chowdeck in favour of simple delivery services – The margins are too low for delivery services to survive. Gokada, Kwik etc might add a marketplace to their offerings. The edtech sector is something to look out for in 2025. No particular startup in mind, but the sector is promising
Makua Eyisi, Co-Founder and CEO at Monibac
There is an AI FOMO. Everyone wants to latch on to the trend of AI so you will see a continued investment into companies that do or claim to do AI.
This does not mean other industries will not get investments.
Health Tech will receive more investment and then particularly for Africa, companies that deal with distribution and retail will also attract investments.
Matthew Davis, Partner and CEO at Renew Capital
2025 will be a good year but investors will be more focused on companies that can get to sustainability faster and will scrutinize valuations.
AI bitcoin stablecoin crypto block and fintech will be a focus. A lot more focus on currency risk management
Babatunde Akin Moses CEO and co-founder at Sycamore
Concerning funding, I think we will see more big players strengthening their positions with follow-on rounds, M&As or liquidity events generally—more of those than new players making waves. The probability of Tizeti listing lends credence to that. So we expect to see big moves from MoniePoint, Moove and other established players.
Miracle Nnaji, Investment Professional and Author 365 Days in Venture Capital
On the funding side of things, we will see sustained growth which ideally should have been the case if not for the abnormal activity that happened in 2021 and 2022. The funding space is going back to 2020 levels—gradual growth. We will see a return of mega-rounds. Mega rounds have been on a steady decline post-2022 since as large startups stayed out of the market because they didn’t want down rounds or valuation cuts. I think there will be more mega-rounds next year. Some of the activities have been signalled by Moove, Moniepoint and TymeBank‘s unicorn raises. We would see some VC concentration in the industry where much of the funding is going to be extracted. That includes EVs, energy and climate tech solutions. This is across different niches in mobility, energy and agriculture. There would be some expansions into the Francophone region as well.
MyFoodAngels founder, Olapeju Umah
People will move more towards communal food purchases, and the company that can somehow infuse tech into this will gain control with the use of big data.
