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African tech has recorded its biggest-ever M&A in 2025 with a 72 per cent jump as startups move towards consolidation. This marks a turning point for African tech as it is now not only surviving the funding winter but actively restructuring itself. The sharp increase in mergers and acquisitions marks 2025 as the continent's most visible pivot yet towards maturity and consolidation, according to a review of the state of tech in Africa for the year 2025 by TechCable Insights.

Africa's tech ecosystem recorded 2,421 layoffs in 2025, the highest annual retrenchment in five years, as companies accelerate a strategic shift towards profitability amid improving funding and maturing market dynamics. The figure reported by TechCable Insights represents a deliberate profit boost, where companies streamlined operations, optimized costs, pivoted business models, and abandoned non-core roles to extend runway, achieve breakeven, and build sustainable growth rather than pursue uncontrolled expansion in a difficult capital environment.

Interswitch, an African payments and digital commerce company, said scalable infrastructure and trusted partnerships, not just innovation and capital, will drive Africa's next technological progress. Akeem Lawal, Managing Director of Interswitch PurePay, emphasized that Africa's digital development depends on resilient infrastructure, collaborative partnerships and reliable technology systems. Speaking at Moonshot by TechCable 2025 in Lagos, he highlighted the vital role these elements play in sustaining long-term progress in the continent’s digital economy.

Nigeria's dominance in West Africa's digital economy positions it as a vital hub for the continent's next frontier of innovation. Behind the country's e-commerce boom lies a harsh reality, which is that millions of small and informal businesses are still struggling with logistics, compliance, credit access and insurance. TechCable Insights' Future of Commerce Report 2025 says it is these low-innovation, operational barriers that are holding back Nigeria's true business potential.