Africa's tech startup ecosystem has made tremendous progress in recent years, with several companies achieving billion-dollar valuations. However, despite this growth, the continent's startups have yet to achieve a single significant exit, raising concerns about the ecosystem's long-term sustainability.

According to a report by Osarumen Osamuyi and Derin Adebayo, since 2019, eight African startups have reached unicorn status, with a combined valuation of $14.7 billion. However, the total value of exits for African startups since 2010 remains at a mere $4 billion. This disparity has sparked questions about the lack of exits in the ecosystem.

The report, titled "When Will The Exits Cross The Road?", explores the journey of the African ecosystem since 2010, placing it within the context of other emerging markets. The authors argue that the ecosystem is no longer in its early stages, and it's time to face the reality of the lack of exits. They also examine the core tension that growth-stage companies must navigate to achieve significant exits.

The report's findings are particularly noteworthy given the significant capital inflows into the continent. In the three years since 2021, the ecosystem has raised over $12 billion, with a substantial portion going to growth-stage companies. This raises questions about the returns on investment for these companies and the ecosystem as a whole.

In related news, Eskom, South Africa's power company, has recorded a staggering $3 billion loss in its 2024 fiscal year. The loss is attributed to widespread power outages and failures at inadequately maintained generating facilities. The company has improved power supply and lowered its diesel spend, but the significant loss has sparked concerns about its long-term viability.

On a more positive note, Proparco, the private sector financing arm of the French Development Agency (AFD), has invested $5 million in Equator Africa Fund, a climate-focused VC firm. The investment aims to support the growth of impactful climate startups in Nigeria, with a focus on clean energy, sustainable farming, and environmentally friendly mobility solutions.

The funding tracker for the week also saw notable investments, including z.systems, a Morocco-based retail tech startup, which raised $1 million in a funding round led by MNF Ventures. Tymebank, South Africa's digital banking platform, raised $250 million in a Series D funding round, achieving unicorn status with a valuation of $1.5 billion.

As the African tech ecosystem continues to grow, the question of exits remains a pressing concern. While the surge in billion-dollar valuations is a positive sign, the lack of significant exits raises questions about the ecosystem's long-term sustainability. As the ecosystem matures, it's essential to address this issue to ensure continued growth and investment.