Between January 2023 and March 2026, at least 56 layoff events (4,948 disclosed job losses) swept through Africa’s tech ecosystem. The data, compiled by TechCabal Insights, cuts through the noise of individual layoff announcements to surface patterns that are harder to see in isolation.
From funding boom to layoffs
Africa’s tech ecosystem raised $4.65 billion across 941 deals in 2022, a record high since 2019. But in 2023, funding fell 37.2% to $2.92 billion across just 554 deals, and declined further to $2.24 billion in 2024, 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. As capital dried up, the number of active investors fell by nearly 50% between 2022 and 2023. The layoff wave that followed was, in some ways, the hangover from overhiring during the 2022 boom.
Alerzo, a Nigerian B2B e-commerce startup, cut staff twice in 2023 after acknowledging it had over-hired during its post-Series A expansion. In March 2023, seven months after its first recorded layoff in September 2022, it 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. Across 2023, 20 layoff events were recorded, accounting for 1,553 disclosed job losses.
