2024 African Startups Review: Unpacking Key Trends and Events – Part 1
As 2024 comes to a close, we’re taking a moment to look back at some of the stories that dominated conversations across Africa.
This year was a cocktail of events. From controversial policies to bold business reinventions, the year left us with plenty to reflect on.
Here’s a closer look at some of the most compelling narratives of the year.
Nigeria’s 0.5% Cybersecurity Levy: A controversial policy that was suspended
As we look back on the year, few issues stirred public sentiment in Nigeria quite like the 0.5% levy on electronic banking transactions, dubbed the Cybersecurity Levy.
This directive from the Central Bank of Nigeria (CBN), set to take effect on May 20, 2024, was introduced to fund the National Cybersecurity Fund and improve the country’s cyber defences.
The timing of the levy was especially contentious, and what began as a government initiative quickly turned into a public relations nightmare.
Citizens, economists, and advocacy groups immediately criticized the levy. Many saw it as an additional burden on a population already grappling with inflation, high unemployment, and rising living costs.
From social media campaigns to protests by labour unions and advocacy groups like SERAP, it became clear that Nigerians were not on board with this policy.
Small business owners expressed fears of increased financial strain, while analysts warned of a likely reversal of the country’s progress toward a cashless economy.
The uproar forced the Federal Executive Council to suspend the levy just days before it was scheduled to take effect. Thankfully, that ship never sailed.
While that decision felt like a win for the people, it is also a story of policy, protest, and the power of collective voices.
Meta and Nigeria’s Fight Against Sextortion Scams
What else felt like a win was Meta Platforms’ fight against cybercrime in the country.
The parent company of Instagram and Facebook took down 63,000 Instagram accounts in Nigeria linked to sextortion scams in July, including a coordinated network of around 2,500 accounts. It also removed a set of Facebook accounts, Pages and Groups used by fraudsters known locally as “Yahoo Boys.”
The tech giant claimed these perpetrators preyed on victims by posing as romantic interests, luring them into sharing explicit images, and then extorting them for money. They had become alarmingly sophisticated, even using Facebook groups to train and recruit new scammers.
Meta’s crackdown wasn’t limited to account removals. The company also introduced several safety measures, including technology to blur unsolicited nude images and enhanced privacy controls for teens.
Meta’s actions, however, were not without context. Earlier in the year, the company faced a USD 220 M fine from Nigeria’s Federal Competition and Consumer Protection Commission (FCCPC) for alleged privacy violations. The fine came after accusations of invasive data practices and market dominance abuse, which many felt disproportionately affected Nigerian users.
While Meta plans to appeal the fine, its crackdown on sextortion is seen as an attempt to regain public trust.
Kenya Welcomes Digital Nomads
Turning to the east, Kenya turned heads–mostly the heads of remote job workers–this year with its introduction of the Class N Digital Nomad Visa.
Announced in October, the visa allows digital nomads to live and work in Kenya while earning income from foreign sources. The policy reflects Kenya’s ambition to position itself as a top destination for remote professionals seeking a balance of work, adventure, and vibrant culture.
However, the visa sets a high entry bar for remote workers from other African economies. Applicants must show an income of at least USD 55 K annually, proof of remote work, and accommodation in Kenya. For context, HRTechXplore reports that the average annual income for remote professionals in Nigeria and South Africa is USD 9600 and USD 14,000, respectively.
While the visa prohibits holders from taking local jobs, it welcomes the economic benefits these professionals bring. Digital nomads are known for boosting tourism, supporting local businesses, and fostering innovation.
Kenya’s decision aligns with a growing trend across Africa, with countries like Mauritius and Namibia also rolling out similar programs. However, Kenya’s offering is bolstered by its burgeoning tech ecosystem, which provides digital workers an environment ripe for collaboration. In addition to its breathtaking landscapes and relatively low cost of living, it’s easy to see why Kenya is aiming high.
This move isn’t just about economics. By embracing the future of work, Kenya is sending a message to the world: it’s open for business and ready to lead the global remote work revolution.
MarketForce killed off RejaReja for the Rebirth of a new ‘Chpter’
Meanwhile, this year was bittersweet for Kenya’s MarketForce, a Kenyan startup that shuttered its B2B e-commerce platform, RejaReja.
Despite serving 270,000 merchants in 21 new cities in 5 African countries and raising USD 42.5 M in funding, the platform shut down due to razor-thin margins and an unsustainable business model.
In the company’s own words, “It concluded that it is no longer feasible to keep RejaReja operational after immense efforts to make our business model sustainable, including downsizing the business to extend the runway for as long as possible.” The embattled company had already exited three markets before finally swinging the axe.
But MarketForce’s founders weren’t ready to give up. They launched Chpter, an AI-powered social commerce platform that helps merchants sell more effectively on social media platforms like WhatsApp and Instagram. It has just secured USD 1.2 M in pre-seed funding.
With Chpter, this is MarketForce’s third attempt at running a viable business. It originally started off as a sales automation software in 2018. Then, it pivoted to the B2B e-commerce RejaReja, which allowed informal retailers to order fast-moving consumer goods (FMCGs) directly from distributors and manufacturers and access financing.
While RejaReja’s closure was a setback, the pivot to Chpter represents the resilience of MarketForce’s leadership to adapt to the realities of Africa’s digital economy. It’s a story of two reinventions, proving that challenges can lead to fresh opportunities.
The Collapse of Mobius Motors
While MarketForce had a chance to reinvent itself, Kenya’s Mobius Motors’ story was more damning. Once a symbol of hope for Africa’s automotive industry, it faced a heartbreaking end this year.
The company announced its liquidation in August, citing mounting financial pressures despite raising USD 56 M in funding. For Mobius Motors, the dream of creating rugged, low-cost SUVs for Africa’s tough terrains came to a heartbreaking halt this year as it struggled to compete against cheaper second-hand imports.
Tax hikes, logistical challenges, and limited consumer demand for its vehicles all contributed to Mobius’ demise. By 2020, the company was deep in debt, with liabilities exceeding KES 649 M. Despite attempts to adapt, including relocating operations, the hurdles proved too great.
The closure raises critical questions about the future of local manufacturing in Africa. How can regional industries thrive in markets dominated by global players and imports? For now, Mobius is a cautionary tale about the complexities of building sustainable businesses in emerging economies.
From digital nomads finding a home in Kenya to the sobering realities of Africa’s business landscape, 2024 has been a year of growth, setbacks, and resilience. As we step into 2025, these stories remind us of this year’s highs and lows, and these narratives will undoubtedly shape the conversations to come.
This article is one instalment in our Yearly Wrap-Up Series, a deep dive into the events and trends that shaped 2024 across Africa and beyond. Stay tuned for the next part, where we’ll explore even more defining moments and their implications for 2025.