Top 10 African Tech Stories 2024
In 2024, the African tech scene saw some major shifts and milestones that kept everyone talking. From Uber making its first African investment to Amazon and Temu changing up the e-commerce game in Africa, and the birth of two new unicorns in the last part of the year, there was no shortage of big news.
With newcomers stepping into the market and established companies adapting to the ever-changing environment, this year was all about growth, innovation, and healthy competition. Now, let’s dive into some of the most significant tech stories that really stood out this year.
One of the major setbacks of the year occurred in July when US-based digital bank, Mercury, announced the closure of user accounts in 13 African countries by August. This move hit hard for many African startups, as Mercury had been a key partner providing services like US dollar accounts and seamless cross-border transactions. The decision was influenced by stricter regulations globally and compliance concerns related to countries like Nigeria, which were flagged by the Financial Action Task Force for anti-money laundering and terrorism financing deficiencies.
Interestingly, Mercury had been on a positive growth trajectory until this point, stepping in to assist startups globally after the collapse of Silicon Valley Bank in 2023. However, its rapid expansion brought with it increased regulatory scrutiny and led to the decision to scale back. While this move created challenges for African startups, it also opens the door for local fintech companies to step up and fill the gap left behind.
In another notable event, Nigeria faced public outcry over the Central Bank’s announcement of a significant increase in the cybersecurity levy on electronic transactions in May. The backlash was so strong that the government eventually suspended the policy just days before it was set to take effect. However, the levy made a return later in the year, but at its original lower rate, still igniting discussions about its transparency and necessity.
Switching gears to e-commerce, Jumia made a bold move in October by announcing the closure of its operations in South Africa and Tunisia by the year’s end. This strategic decision was made to focus on markets with higher growth potential and work towards profitability, which has been a challenge for the company. Despite facing setbacks in revenue and order value, Jumia remains determined, cutting costs, raising funds, and doubling down on key markets in West and East Africa.
Finally, Amazon Prime made headlines when it announced a scaling back of its local content production efforts in Africa and the Middle East, shifting its focus to Europe. This move was likely influenced by tough competition from other streaming giants like Netflix and Showmax, who have been leading the market in Africa. While approved shows will still be available, the decision reflects the challenges of operating in a region with low streaming penetration and fierce competition.
Overall, 2024 was a year of twists and turns in the African tech landscape, with big players making strategic moves and facing challenges head-on. As the industry continues to evolve, it will be interesting to see how these shifts shape the future of tech in Africa.
