Africa’s technology ecosystem recorded a significant rise in merger and acquisition (M&A) activity in the first half of 2026, with disclosed deal value reaching an estimated $7.88 billion, driven largely by MTN Group’s $6.2 billion acquisition of a 75 per cent stake in IHS Towers.
According to the latest State of Tech in Africa (SOTIA) report, the continent recorded 63 completed consolidation transactions during the first six months of 2026, representing a 91 per cent increase compared with the 33 deals recorded in the corresponding period of 2025.
The report noted that the number of transactions completed in the first half of the year almost matched the 68 M&A deals recorded throughout the whole of 2025, highlighting a significant acceleration in corporate consolidation across Africa’s technology markets.
The increase in deal activity underscores a shift in Africa’s startup ecosystem, where investors and larger companies are increasingly relying on acquisitions as a pathway to scale businesses, unlock value and provide exit opportunities for early-stage investors.
According to the report, the growing pace of consolidation indicates that Africa’s technology market is gradually moving beyond an early-stage venture ecosystem towards a more mature environment where companies are being absorbed, integrated and scaled through strategic acquisitions.
“Liquidity constraints are easing considerably for investors,” the report stated, adding that successful exits allow venture capital firms to return capital to their limited partners while strengthening confidence in African technology investments.
Southern Africa emerged as the leading region for consolidation activity during the period, recording 18 acquisitions. South Africa accounted for the highest number of acquired companies across the continent with 16 deals, ahead of other major technology markets including Nigeria with 10 acquisitions, Egypt with nine and Kenya with seven.
Northern Africa recorded 13 acquisitions, while Western Africa followed with 12 deals, indicating that technology consolidation is spreading across multiple regions rather than being concentrated in a few major innovation hubs.
Beyond the continent, African technology companies also expanded their global footprint, completing six strategic acquisitions outside Africa. The deals involved targets in countries including the United Kingdom, United States, Germany, France, Canada, Kuwait and Bangladesh.
The report attributed the record transaction value largely to MTN Group’s acquisition of a majority stake in IHS Towers, one of the largest technology-related transactions recorded during the period.
Other major deals that contributed to the overall value included Nedbank’s $850 million acquisition of a 66 per cent stake in NCBA Group, Uber’s $315 million investment in Prosus, Beltone’s $197.6 million acquisition of Baobab Group, MNDR’s $119 million acquisition of Bima, and Flutterwave’s acquisition of Mono valued between $25 million and $40 million.
Financial services remained the most active sector for consolidation, accounting for 31.7 per cent of all tracked transactions, with 20 deals completed during the period. The retail sector followed with 14.3 per cent, while services and education accounted for 9.5 per cent and 7.9 per cent respectively.
The rise in M&A activity comes at a time when Africa’s technology ecosystem is undergoing major restructuring, with companies seeking stronger partnerships, improved operational efficiency and access to larger markets.
Looking ahead, the SOTIA report expects consolidation activity to remain strong, with M&A deals projected to continue rising as companies seek faster growth through acquisitions rather than building new operations from scratch. The report noted that expansion beyond established technology markets will increasingly depend on cross-border acquisitions, as businesses pursue licences, market access and strategic capabilities.
According to the report, 2026 M&A activity could nearly double the volume recorded in 2025, driven by companies looking to acquire competitors, expand across African markets and pursue international opportunities in regions such as North America, Europe and Asia.
It also projected stronger strategic partnerships among technology companies as businesses increasingly collaborate to share operational costs, combine resources and improve competitiveness in a rapidly evolving digital economy.
