Events that shaped African tech in 2023

In the fast-evolving landscape of African tech, 2023 was a year brimming with headline-making moments.

From intersections in high places to the rise and fall of startups, the emergence of new waves, and significant acquisitions, the year has been a rollercoaster of innovation, setbacks, and pivotal shifts reshaping the continent’s tech ecosystem.

Charles Rapulu Udoh, a tech startup lawyer said 2023 was eventful for Africa’s most populous country tech. Adding that “We witnessed a massive realignment in the entire landscape. More particularly, the year was shaped by substantial layoffs, a hard-hitting funding crunch that saw startups sourcing funds in alternative markets like bonds and debt.”

“The demise of well-funded startups is also notable, triggering panic across the entire ecosystem. Startups like Zazuu, Pivo, 54Gene, and a host of others were consigned to oblivion. Notably, there was a major funding decline for Nigerian startups, with Egypt overtaking Nigeria in startup funding in the first half of the year,” he said.

According to WeeTracker, a business, startup & tech publication in Africa,

the 13 most-talked-about events that have captured the essence of African tech’s dynamic trajectory in the past year include.

The appointment of a tech minister in Nigeria

News of the appointment of ‘Bosun Tijani, CcHUB founder and a familiar figure in Nigeria’s tech startup and digital innovation ecosystem, as the country’s minister of communications, innovation, and digital economy was received with cheers among industry stakeholders.

The prevailing sentiment has the appointment of an industry insider and achiever as a coup for the vibrant Nigerian tech scene which has, at times, been held back by hostile policy championed by perceived outsider appointees.

The demise of 54gene

Reports emerged in September 2023 that 54gene, a genomics research company that had raised $45 million across three funding rounds, is calling it quits, to much shock from stakeholders and observers. The startup, which has had three CEOs in the last 12 months, said it “could not continue to operate financially.”

Ron Chiarello, the most recent CEO at the much-changed 54gene, confirmed that the once-celebrated startup is shuttering. Its demise comes after a relatively short existence laden with highs that some suggest also yielded problems that ultimately cratered the company.

Starlink’s Africa rollout

Starlink, a satellite internet constellation operated by SpaceX, one of the more audacious projects of the somewhat divisive billionaire, Elon Musk, became operational in multiple African countries this year to much fanfare, despite initial worrisome first impressions and regulatory disputes.

In Africa, Starlink’s broadband services promising high speed and low latency internet with a moveable plug-and-play kit, are available in Nigeria, Kenya, Mozambique, Rwanda, Malawi and Zambia, among others, with many more countries due to launch services in 2024.

Crypto ban reversal

Nigeria’s crypto scene is buzzing with excitement following the recent lifting of the ban on cryptocurrency imposed by the Central Bank of Nigeria (CBN) almost three years ago, citing security and fraud concerns. This game-changing move has set the stage for local startups to expand and innovate in the country’s evolving fintech landscape.

The suspension of the ban has reopened doors previously closed for crypto startups, many of which were sent reeling as the regulator yanked crypto firms off formal banking rails and the industry grappled with a downturn, exacerbated by the collapse of major crypto players, most notably FTX whose demise was a major blow to the industry.

A new African tech unicorn amid a drought

In February 2023, MNT-Halan—an Egyptian startup that combines fintech and e-commerce offerings raised $400 million in equity and debt financing to realize a post-money valuation of $1 billion which earns it unicorn status.

The feat ends a unicorn dry spell that has gripped Africa for over a year; the continent last minted a billion-dollar startup in November 2021, when Nigeria’s Chipper Cash soaked in a Series C extension of $150 million.

Nevertheless, the markets have taken a turn since then and news of valuation cuts at various startups, including Chipper Cash, means the quest for startup unicorns isn’t very popular in African tech these days.

Deception at Dash

Dash, a Ghanaian fintech startup that raised $86 million in multiple quick-fire raises, only to go bust a year after it gave the impression of meteoric growth as it closed a substantial seed round.