As 2026 unfolds, the dynamics of startup exits in Africa are changing fast. For years, founders on the continent dreamed of selling to global tech giants or listing on stock markets. That aspiration was stronger during the big funding boom of the early 2020s. But today the picture is different. The boom has faded, but a steady rhythm of exits through company acquisitions has taken its place. Instead of a few massive public listings, more than a hundred startups have changed hands in the past few years, mostly through mergers and acquisitions. This new normal shows that founders are finding ways to generate returns at scale by working with buyers who know the landscape well and are ready to invest in growth.
What this means for the African tech ecosystem is a pivot in strategy. According to TechCabal, founders who once waited on the sidelines for international offers are now looking inwards. They are choosing partners who understand the local market, regulatory frameworks, and traction patterns unique to African economies. With global late-stage capital constrained and initial public offering opportunities limited, trade sales are gaining favour quickly.
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A Funding Slowdown Links to More Trade Sales
The backdrop of this shift is the slowdown in venture funding that followed the rush of investment between 2021 and 2022. Funding peaked at over three billion dollars in 2022 before sliding back in 2023 and stabilising around two to three billion dollars a year in 2024 and 2025. That trend means startups that raised money at high valuations in earlier years are now under pressure to deliver returns, pushing them toward exits rather than indefinite fundraising. At the same time, investors are pushing for liquidity rather than indefinite valuations with no clear path to cash outcomes.
The result is a consolidation wave. Reports show that mergers and acquisitions between local and regional players have hit record levels, with fintech, logistics, and mobility among the most active sectors. The number of deals in 2025 alone jumped sharply compared to 2024, setting new records for exit volumes. This suggests that the so-called funding winter is now fuelling a flurry of strategic buyouts instead of stalling growth.
The New Buyers Shaping Startup Exits
1. Regional Powerhouses
African incumbents are emerging as top buyers in 2026. These are established regional banks, telcos, insurers, and large retailers that no longer want to build digital products from scratch. Instead, they buy startups with the technology, licences, and teams already in place. For example, banking groups have snapped up digital lenders and payments startups to turbocharge their SME or consumer offerings. These buyers are motivated by the need to expand digital services rapidly and compete more effectively in an increasingly digital economy.
Across the continent, we also see regional fintechs and banks buying into new markets. Nigerian fintech leaders have acquired microfinance banks in East Africa to secure licences, while South African financial services firms have taken on fintech platforms to strengthen merchant acceptance networks. These transactions are all about speed, regulation, and deep local knowledge.
2. African Startups Buying Startups
Another notable pattern is the rise of African scale-ups acting as acquirers themselves. Once fast-growth companies, some are now investors and buyers in their own right. For instance, logistics startups with strong regional footprints have bought smaller players to expand across borders quickly. Others have entered adjacent sectors by acquiring complementary businesses, stitching together more extensive services for customers across multiple countries. This trend reflects a maturing ecosystem where local companies see acquisitions as a tool for expansion rather than merely a final exit.
A big example of this trend early in 2026 was a major all-share acquisition that brought open banking technology into a leading pan-African payments platform. Meanwhile, other African platforms in payments and agency networks are being courted for their regulatory value and customer access.
3. Global Strategic Buyers
Global companies continue to participate in African exits, but their role is more surgical. These buyers often pick opportunities that plug into their global strategies, such as infrastructure, software, or payments technology. High-profile acquisitions like a major global payments platform buying a Nigerian payment gateway or a global cloud provider rounding out connectivity infrastructure in Africa show that international buyers are still active. But these deals tend to focus on strategic assets that enhance global product suites rather than broad consumer market platforms.
This careful approach reflects the broader global investment climate. International buyers have tightened their focus and capital deployment, meaning only African startups with strong fundamentals, clear use cases, and strategic value attract their interest.
4. Private Equity and Secondary Transactions
Private equity firms and secondary market deals play a meaningful role in Africa’s exits. Instead of acquiring companies for operating purposes, these buyers often provide liquidity to early investors or founders. This can involve one private equity firm buying out another or setting up continuation funds that hold assets for longer while providing cash to earlier backers. These transactions do not always make headlines like high-profile strategic acquisitions, but they are important for sustaining investor confidence and recycling capital within the ecosystem.
Secondaries are becoming more common because they offer returns even when full strategic buyouts or IPOs are off the table. This helps bridge the gap for founders and investors looking for tangible returns without waiting years for a traditional exit.
Return of the IPO but Still Rare
Public listings are returning to African markets, yet they remain rare for tech startups compared to trade sales. In late 2025, a handful of tech companies listed on African exchanges, showing that the public markets are not completely closed. However, IPOs still only make up a tiny percentage of exits, and most are driven by local institutional investors like pension funds and insurance firms rather than global technology money.
This means that while lists of public tech companies on African stock exchanges are growing slowly, founders cannot yet count on public markets as predictable exit routes. For most, selling to a strategic buyer continues to promise quicker returns and clearer paths to scaling.
Regional Patterns in Acquisition Activity
Deals are happening right across the continent, but patterns vary by region. Domestic buyers now account for more than half of all exits, and when combined with regional cross-border transactions, intra-African acquisitions make up the majority of deals. This is a significant departure from earlier years when external buyers dominated the scene.
Buyers from the Gulf and Middle East are also showing up more frequently, especially in North and East Africa, drawn by proximity and market connections. Meanwhile, traditional global buyers from the United States, Europe, and Asia continue to play a role, particularly in infrastructure, connectivity, and certain software segments.
The shift toward local and regional buyers reflects deeper confidence in African markets. It shows that companies with on-the-ground presence, operational knowledge, and regulatory insight are best positioned to take advantage of emerging opportunities. Founders and investors are increasingly aligning with that reality, promoting exits that solidify long-term value for all stakeholders.
Africa’s startup acquisition landscape in 2026 is about pragmatism, resilience, and local knowledge. Exits may look less glamorous than the high-flying IPOs once hoped for. But they are real, they are happening, and they are building a future where homegrown buyers and regional champions define success.
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