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    HomeAnalysis & OpinionsThe African Tech Firms Investing in the Next Wave of Startups

    The African Tech Firms Investing in the Next Wave of Startups

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    The African startup ecosystem, often perceived as underfunded and lacking support, is seeing a shift as some forward-thinking tech companies step up with strategic investments in emerging ventures. This corporate venture capital activity marks a growing trend in the continent’s tech landscape, where established firms are increasingly positioning themselves as key investors, driving innovation and scaling new businesses.

    Despite the challenges posed by limited funding and a developing ecosystem, several African tech companies are leading the way in backing startups. Their efforts not only address funding gaps but also foster collaboration and growth, helping to shape the future of Africa’s tech-driven economy. Below are some of the prominent players fueling this movement.

    Cash Plus via Cash Plus Ventures

    Founded in 2004, Morocco’s Cash Plus is one of the country’s largest financial services providers, operating 3,600 physical locations across the nation. Initially known for remittances and payment services, Cash Plus has broadened its role within the financial ecosystem, now supporting the growing startup sector via its investment arm, Cash Plus Ventures.

    Cash Plus Ventures aims to identify and foster startups with high potential. Their investments have been paired with strategic mentorship and access to an expansive network of business connections. Among their most successful ventures is Tawssil, a last-mile delivery service that has completed over 1.2 million deliveries. Other noteworthy portfolio companies include Weego, a transit app with over 15,000 active users, and Sle3ti.ma, which connects over 12,000 retailers with suppliers in Morocco. This diversification illustrates Cash Plus’ commitment to nurturing technology-driven innovation in Morocco.

    Fawry’s Strategic Investments

    Egypt’s Fawry stands out as a regional leader in the electronic payments space, serving over 51 million customers and facilitating more than 4 million transactions daily. Its platform caters to both banked and unbanked populations, making financial inclusion one of its core missions. While Fawry’s primary business involves payment facilitation, the company has extended its focus to invest in emerging startups across North Africa.

    In 2017, Fawry made headlines by investing in Bosta, an Egyptian on-demand delivery startup. While the exact investment figures were not disclosed, it is confirmed that Fawry’s injection of capital was a six-digit dollar amount. Fawry has also supported other promising ventures, including Egyptian social commerce platform Brimore, Tunisian logistics firm Mylerz, and Sudan’s marketplace asloug.com. These investments reflect Fawry’s strategy of fostering complementary industries, especially in logistics and commerce, which align with its core payments business.

    Nestcoin

    Launched in 2021, Nigeria’s Nestcoin originally sought to explore the frontiers of web and crypto technologies through ventures like Breach (a media platform) and Metaverse Magma (MVM), a gaming decentralized autonomous organization (DAO). However, in response to the volatile crypto landscape, the company has since shifted focus, concentrating on the development of Onboard, a crypto education platform.

    Despite this pivot, Nestcoin remains active in the startup investment space. The company has made notable investments in AltSchool Africa, an edtech venture focused on upskilling African youth, and Stakefair, a crypto-based gaming platform. It also backed Switzerland-based blockchain startup Shardeum. While Nestcoin has seen setbacks — including the collapse of the Nigerian crypto startup Lazerpay — its investment strategy highlights its commitment to supporting frontier technology and nurturing the next generation of African innovators.

    Interswitch: A Veteran Supporting Fintech and Beyond

    Nigeria’s Interswitch is a pioneer in digital payments and transaction processing, with operations dating back to 2002. While the company has made a name for itself by facilitating electronic payments and offering digital infrastructure to banks, businesses, and governments, it has also emerged as a key player in venture investments, particularly within Nigeria’s fintech ecosystem.

    Interswitch has backed startups such as MKudi Nigeria, a mobile money platform, and Shuttlers, an innovative transportation startup offering ride-sharing services for commuters. Other investments include OkHi, a digital addressing platform that helps businesses deliver to previously hard-to-find locations, and eClat Healthcare, a digital health solutions provider. Additionally, Interswitch invested in fintech Vanso, a move that strengthened its own product offerings and deepened its footprint in Nigeria’s competitive financial technology sector.

    A Growing but Fragmented Trend

    Although the landscape of corporate venture capital in Africa remains nascent and fragmented, companies like Cash Plus, Fawry, Nestcoin, and Interswitch are laying the groundwork for a more robust investment culture across the continent. Their investments demonstrate that established African tech firms can drive meaningful impact, not only by providing financial support but also by offering mentorship, market access, and strategic partnerships to startups.

    While anti-trust concerns, ecosystem immaturity, and general resource constraints continue to limit the scope of these efforts, the rise of corporate venture capital signals a growing confidence in Africa’s tech-driven future. Established firms are now seeing the benefit of aligning their business strategies with emerging startups, creating a mutually beneficial environment where innovation can flourish.

    As more African tech companies follow suit, the continent’s startups may find themselves better equipped to scale, collaborate, and compete on the global stage.

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