For more than a decade, venture capital has been the primary engine behind Africa’s technology sector. Billions of dollars have flowed into fintech, e-commerce, logistics, health technology and other digital industries, helping to build companies such as Flutterwave, Interswitch and M-Pesa that have transformed payments, commerce and financial inclusion across the continent.
As many of these businesses mature, however, the financing landscape is beginning to change. Venture funding has become more selective, early investors are seeking exits, and public markets are increasingly being viewed as the next stage in Africa’s technology financing journey.
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This raises an important question: are African stock exchanges prepared to support a new generation of technology initial public offerings (IPOs)? The answer could shape the future of capital formation, wealth creation and ownership within Africa’s digital economy.
Between 2020 and 2022, African technology companies experienced record levels of venture capital investment. Investors channelled billions of dollars into digital payments, mobile banking, e-commerce, enterprise software, climate technology and artificial intelligence, attracted by the continent’s rapidly expanding digital economy.
That momentum slowed considerably after the global technology downturn. Startup funding declined from more than US$4 billion in 2022 to approximately US$2.1 billion to US$2.2 billion in 2024 as investors shifted their focus towards profitability, sustainable growth and stronger financial performance. This has increased interest in alternative sources of long-term capital.
Public listings offer benefits that extend beyond fundraising. IPOs can provide liquidity for early investors, create tradable employee share schemes, improve corporate governance through public disclosure requirements and broaden ownership by enabling institutional and retail investors to participate in the growth of local technology companies.
They also address a growing liquidity challenge within the venture capital ecosystem. Many startups that secured funding between five and ten years ago are reaching maturity, and their early investors require viable exit opportunities. Without successful exits, venture capital becomes less attractive, investment cycles slow and future funding may become more difficult to secure.
African stock exchanges have traditionally been dominated by financial institutions, telecommunications companies, consumer goods firms, mining businesses and energy companies. As technology becomes an increasingly important contributor to economic growth, several exchanges are introducing reforms aimed at attracting digital businesses.
One example is the Nigerian Exchange Group’s Technology Board, which offers more flexible listing requirements than the main market. Features such as lower free-float thresholds recognise that many technology companies prioritise growth over short-term profitability and often operate asset-light business models.
Exchanges are also investing in broader market modernisation through faster settlement cycles, improved digital trading infrastructure, extended trading hours and more efficient transaction processing. These developments are intended to strengthen market efficiency and improve the attractiveness of African exchanges for both domestic and international investors.
Several African technology companies are now widely viewed as potential IPO candidates. Businesses including Flutterwave, Interswitch, Moniepoint and Tyme Group have achieved significant scale, expanded across multiple markets and developed business models comparable to companies that have historically transitioned from venture-backed firms to publicly listed corporations.
Dual listings are also becoming an increasingly attractive option. Listing simultaneously on an African exchange and an international market, such as NASDAQ or the London Stock Exchange, allows companies to access deeper pools of global capital while maintaining opportunities for African institutional and retail investors to participate in their growth.
The proposed IPO of Dangote Refinery and Petrochemicals, although outside the technology sector, illustrates the growing emphasis on regional capital market integration. The Nigerian Exchange has promoted the planned listing as an African investment opportunity, engaging exchanges across Kenya, Ghana, South Africa and other markets. Similar cross-border participation could strengthen future technology listings by expanding the potential investor base beyond individual national markets.
Successful technology IPOs could generate several broader economic benefits. They would enable wider participation in wealth creation by opening investment opportunities to pension funds, insurance companies, mutual funds and retail investors. They could also deepen African capital markets, increase liquidity, strengthen institutional participation and provide additional financing for innovation.
Local listings also help retain more economic value within Africa. When technology companies raise capital domestically, local investors can participate in their growth, pension funds benefit from expanding investment opportunities, and domestic capital markets become stronger over time.
Despite these opportunities, important challenges remain. Many African exchanges continue to face liquidity constraints, while technology companies often operate across multiple regulatory jurisdictions. Some pension funds and institutional investors remain subject to conservative investment rules that may limit exposure to high-growth technology businesses. Investor education will also be important, as technology companies are often valued using different metrics from traditional industries.
The emergence of African technology IPOs represents a natural evolution of the continent’s innovation ecosystem. The first generation of startups demonstrated that globally competitive technology companies can be built in Africa. The next phase will focus on scaling these businesses, strengthening corporate governance and broadening ownership through public markets.
As venture capital becomes more selective, African stock exchanges have an opportunity to play a larger role in financing innovation. Through specialised technology boards, continued market modernisation and regulatory reforms, exchanges are adapting to the needs of high-growth digital businesses.
The question is no longer whether African technology companies will eventually seek public listings. It is whether Africa’s capital markets can evolve quickly enough to support them and ensure that a greater share of the value created by the continent’s digital economy remains within Africa.
