In a surprising turn of events, African startups have defied the odds and expanded aggressively despite a tough funding environment. According to the SOTIA 2024 report, 38 startups entered new markets in 2024, more than double the number in 2023. This signals a shift in strategy as founders seek growth beyond capital raises.

This trend is expected to shape the startup landscape in 2025, with founders adapting to the new reality of reduced funding. The report highlights the resilience of African startups, which have found ways to navigate the challenging funding environment and continue to grow.

In other news, Flutterwave, the fintech giant, has acquired a licence in Ghana to provide inward remittance services in the country. This move is expected to boost the company's presence in West Africa and expand its services to more customers.

Mobius Motors, once Kenya's bet on homegrown SUVs, is back in business after Silver Box, a Middle East-based investment firm, acquired 100% of the struggling automaker in an undisclosed deal. The acquisition follows a turbulent period for Mobius, which failed to compete with Kenya's dominant second-hand car market and entered voluntary liquidation in August 2024.

With new ownership comes a leadership change, as John Kavila takes over as Chief Operating Officer, replacing CEO Nicholas Guibert. The company's Nairobi plant, which includes fabrication, assembly, and testing facilities, remains one of its biggest assets. The new owners could use it to continue Mobius' original vision or pivot to assembling different models.

In Southern Africa, Lesotho has threatened to cut ties with Elon Musk's Starlink for failing to make any provision for black or local ownership for its planned entry into the country. This is not an isolated case, as South Africa has also stalled its long-standing talks with Starlink due to the same issue. The lack of black ownership has become a major hurdle for Starlink's expansion in the region.

Foreign companies have historically complied with these rules through partnerships and community investments in the host country. However, Starlink seems to rely on its "better technology" pitch, which has not been well-received by Southern African countries. The issue is not about broadband access but a demand for inclusivity, and until Starlink finds a workaround, entering these markets will remain a guessing game.

In Nigeria, the cost-of-living crisis has led to a significant increase in the cost of essential stew ingredients like tomatoes, onions, and beef. A PricePally report stated that it now costs more than double to prepare a pot of beef stew compared to a year ago. The extreme heat experienced in lorries traveling from northern to southern regions, especially to places like Lagos, causes many tomatoes to spoil, leading to post-harvest losses.

In South Africa, financial regulators have given a deadline for crypto startups to comply with the travel rule, which demands that detailed client information must accompany any crypto transfer over R5,000 ($275), whether local or cross-border. Crypto asset service providers (CASPs) will need to meet the rules under "Directive 9" or risk getting fines.

The directive is the government's attempt to curb money laundering and terrorism financing. CASPs will need to tighten customer verification, monitor transactions more closely, and flag suspicious activity. Failure to do so could lead to serious penalties under the Financial Intelligence Centre Act (FICA).

The road to compliance won't be smooth, as the travel rule raises tricky privacy issues, particularly under South Africa's Protection of Personal Information Act (POPIA), which restricts sharing personal data with countries lacking strong privacy laws. Platforms will have to figure out how to stay on the right side of both sets of rules without getting tangled up in legal contradictions.

With the clock ticking, CASPs are stuck in a pickle: tighten up compliance systems and adapt or risk getting fined—or worse, losing their licences. April is almost here, and the crypto industry is bracing itself for the impact of this new regulation.