Inside Africa's tech layoffs: What the data says (20232026)

In the scorching heat of Lagos, Nigeria, the tech hub of West Africa, a quiet storm brewed. Between January 2023 and March 2026, at least 56 layoff events swept through the continent's tech ecosystem, leaving in their wake 4,948 disclosed job losses. The data, compiled by TechCabal Insights, reveals a stark reality: Africa's tech boom had turned to bust.

From the highs of 2022, when the ecosystem raised a record $4.65 billion across 941 deals, the funding landscape shifted dramatically. In 2023, funding fell by 37.2% to $2.92 billion, and by 2024, it had declined further to $2.24 billion, less than half the 2022 peak. The decline mirrored a broader global venture capital slowdown, as higher interest rates, inflation, and greater investor caution made capital harder to raise.

In 2022, Africa's tech ecosystem was abuzz with activity. Startups like Alerzo, a Nigerian B2B e-commerce startup, had raised significant funding and were expanding rapidly. But as the funding dried up, the reality of overhiring during the boom began to sink in. Alerzo, for instance, cut staff twice in 2023 after acknowledging it had over-hired during its post-Series A expansion. In March 2023, the company cut over 400 staff, citing post-election uncertainty and difficult macroeconomic conditions. Eight months later, in November 2023, it laid off another 100, this time attributing the cuts to warehouse automation.

The sector breakdown reveals where the pressure has been most concentrated. Fintech recorded the most layoff events, 20 of 56 tracked cases, or 35% of the total. This is not surprising, given that fintech is Africa's dominant startup sector by both deal count and capital raised. Data from TechCabal Insights State of Tech in Africa 2025 report shows the sector attracted 40% of startup funding ($1.37B) in 2025, more than the next five sectors combined. Nigeria drives much of that weight, with 10 of the 13 fintech layoff events tracked coming from the country.

The e-commerce sector, however, tells a different story. With 12 events, e-commerce accounted for 2,872 disclosed job losses, a staggering 58% of the total job losses in the sector. The difference comes down to headcount. E-commerce companies, with their warehouses, logistics networks, and last-mile operations, employ far more people per dollar of revenue than most fintech firms. Companies like Copia Global and Twiga Foods alone account for the bulk of disclosed losses in this sector.

The layoff wave that swept through Africa's tech ecosystem between 2023 and 2026 is a stark reminder of the vulnerability of the sector. The data reveals that the decline in funding, coupled with overhiring during the boom, has led to a wave of layoffs that has left thousands of workers without jobs. As the sector continues to grapple with the aftermath of the funding slowdown, one thing is clear: the future of Africa's tech ecosystem will be shaped by the decisions made during this tumultuous period.

In my opinion, the layoffs in Africa's tech ecosystem are a wake-up call for policymakers and investors to rethink their approach to funding and supporting startups. The sector's vulnerability to economic downturns and funding fluctuations is a stark reminder of the need for more sustainable and long-term support for African startups.