Why the next wave of African unicorns will be built on retention, not acquisition
- In 2024, African tech funding fell to $1.1 billion, a 50% drop from 2023.
- Customer acquisition costs for African startups have reached their highest levels in history.
- The number of active African fintech ventures increased by 17.7% in two years, intensifying competition.
The shift towards retention-focused strategies in African startups is a necessary evolution in response to changing market conditions. Founders must prioritize building products that foster loyalty and engagement, as this will be critical for survival in an increasingly competitive landscape. Investors should adapt their evaluation criteria to emphasize retention metrics over mere user acquisition figures.
