The sustainability and growth witnessed in Africa’s technology sector over the years have largely been fueled by venture capital investment. Capital raised through funding rounds from local and international venture firms has driven the scaling of many innovative startups across the continent. This remains the dominant model, but mergers and acquisitions are increasingly emerging as a deliberate strategy for scale and expansion, rather than the last-resort survival move they were once perceived to be.

In 2025, this shift became unmistakable. A wave of deals swept across the ecosystem, including French media giant Canal+ acquiring MultiChoice, and Nigeria’s tech-powered food delivery startup Chowdeck acquiring Mira to strengthen its vendor network. According to data from TechCabal Insights, M&A activity on the continent hit a record high, with 67 deals recorded during the year. This represented a 72 percent increase from the 39 deals completed in 2024, and comfortably surpassed the previous record of 40 deals set in 2022.

More telling than the sheer volume was the intent behind these transactions. Many of the acquisitions were driven by geographic expansion or the integration of new technologies, reflecting how established companies leveraged M&As to enter new markets, secure licenses, and consolidate market share. It was a clear signal that acquisitions were becoming a core growth lever, a trend that has carried into 2026.

The year has barely begun, yet major deals are already being executed. One of the earliest headline transactions involved Step Distinctive Limited, an e-commerce livestreaming firm owned by Senegalese-Italian creator Khaby Lame. In an all-stock deal valued at $975 million, Lame sold a significant stake in the company to Hong Kong-based Rich Sparkle Holdings, forming a global acquisition and strategic partnership.

The agreement grants Rich Sparkle Holdings global exclusive rights to Lame’s brand, image, partnerships, e-commerce operations, and AI digital twin for 36 months. Lame’s rise to global fame through wordless videos that cut across language barriers was a key attraction, particularly for a company seeking to scale across cultures without the need for translation. For the Senegalese-Italian creator, the deal also marks a transition from a traditional influencer model to an equity-backed creator model, while retaining control as the company’s controlling shareholder.

In the more traditional tech sector, Flutterwave recorded one of the first major African tech acquisitions of 2026 with its purchase of Mono, an open banking infrastructure provider. The deal is structured to allow Mono to continue operating independently, with no changes to its leadership, team, or day-to-day operations. For Flutterwave, the acquisition strengthens its broader financial offering by integrating Mono’s bank-based and data-driven services.

Similarly, fintech giant Paystack made a decisive move into Nigeria’s banking sector through the acquisition of Ladder Microfinance Bank. Rebranded as Paystack MFB, the move adds a banking layer to Paystack’s business-focused payment products. The bank will initially offer loans to businesses before expanding to consumers, while also providing banking-as-a-service and treasury management tools to companies building financial products.

Taken together, these early-year moves suggest a maturing M&A landscape across the continent and signal an active deal environment for the remaining months of 2026.