African startups are expected to see an uptick in venture funding in 2025, according to predictions from top venture capital firms. This comes as a welcome respite after a tough 2024, which saw funding decline sharply and competition for capital intensify. The VCs attribute this predicted increase to startups that have adopted sustainable growth practices and developed market-focused products.

According to the VCs, cash management and business fundamentals will be crucial for early-stage startups to thrive in 2025. This means that startups will need to prioritize efficient use of resources, robust financial planning, and a deep understanding of their target markets to attract investors and drive growth.

In other news, Nigerian gig drivers are pushing for a federal regulatory framework to bring fairness to the industry. The Amalgamated Union of App-Based Transport Workers of Nigeria (AUATWON) is seeking better pay, reduced multiple taxations, and improved working conditions for its members. This is not the first time the union has lobbied for federal involvement, having made similar requests at least three times since the start of 2024.

The ride-hailing sector has been poorly regulated, with labour laws not created with the sector in mind. In contrast, fintech is one of the heavily regulated industries. The union's demands, if met, could tip the scales of the power dynamic between gig drivers and their employers, who have historically tried to strong-arm drivers into negotiating favourable working conditions to protect their profits.

In a separate development, the Nigerian Stock Exchange (NGX) helped the government and corporates raise $7.85 billion in 2024. The NGX recorded ₦12.17 trillion ($7.85 billion) in trading volume for corporate listings and FGN bonds in 2024, with corporate listings leading the charge with ₦6.2 trillion ($4 billion). This is a significant increase from the previous year, with the NGX seeing a remarkable run in 2024.

Kenya has introduced a new bill aimed at regulating cryptocurrencies and virtual asset companies like crypto exchanges. The bill advocates for protecting users through financial literacy, mandating blockchain and crypto startups to test out their applications in a regulated sandbox before launching them to the public. The bill also provides strong provisions for consumer protection, with a flat rate of about 3% on earnings made from digital assets for individuals and businesses.

The Lagos Tech Fest is set to hold its fifth edition from February 19–20, 2025, at the Landmark Event Center, VI, Lagos. The event will gather startups, innovators, investors, and government representatives to shape Nigeria's tech future through conferences, exhibitions, networking, and driving ecosystem investments.

As the African tech ecosystem continues to evolve, it will be interesting to see how these developments play out in 2025. With VCs predicting an uptick in funding, startups will need to prioritize sustainable growth practices and market-focused products to attract investors and drive growth. Meanwhile, regulatory frameworks and industry developments will continue to shape the landscape for gig drivers, fintech, and crypto companies.