The chilling effect of insolvency on the exit trail

By Eric Osiakwan

On January 30, 2026, we woke up to the chilling effect of the insolvency of Koko Network, a Kenyan climate tech startup once touted as the poster child of clean cooking in Africa, shutting down after accumulating more than $60m in debt.

RELATED: Mergers and Acquisitions are surging amidst market exuberance on the exit trail

This represents a stunning reversal of the company’s fortune, having raised close to $300m million in equity over its eleven years in existence. Koko’s failure to secure letters of authorization from Kenya’s government to sell its carbon credits in the compliance markets effectively demolished its shaky foundation.

Those sales were a cornerstone of the Koko business model.[1] If the government had authorized Koko’s entire sale abroad, it would have either consumed all of Kenya’s carbon allocation for the year and that would negate the country’s effort towards climate change because it won’t be able to count Koko’s credits towards its own. As Lee Kinyanjui, Kenya’s trade secretary put it “Koko’s business model did not align with Kenya’s plans”.

This is not too long after, Lipa Later, a Kenyan fintech that offers consumer credit and e-commerce solutions for merchants, was placed under administration two years after it acquired struggling e-commerce platform Sky.Garden for US$1.6 million. Several well-funded startups have failed in the last five years, creating the chilling effect that insolvency has amidst market exuberance and a surge in mergers and acquisitions but so is the game – you lose some and win others.

Access Bank Abandons Bidvest Takeover, Ending Landmark Nigeria–South Africa Banking Deal

Nigeria’s Access Bank’s long-anticipated acquisition of South Africa’s Bidvest Bank has fallen apart, ending one of the most closely watched cross-border banking deals between West and Southern Africa. The transaction was terminated after Nigeria’s biggest bank by assets failed to meet key regulatory conditions by the agreed deadline date of January 26, 2026.

In a filing to the Nigerian Stock Exchange (NSE) on Tuesday, Access Holdings Plc, its parent company, confirmed that the deal fell through because “certain conditions (including regulatory conditions) were not fully met.” “The outcome reflects the complexities and extended timelines associated with multijurisdictional regulatory and transactional processes, rather than any change in the Bank’s strategic intent or assessment of the South African market,” the company said in its filing.[2]

MTN Group Acquires IHS Towers Nigeria, Strengthening Its Hold on Africa’s Largest Telecom Market

Meanwhile, South Africa’s MTN Group, Africa’s largest telecom operator, confirmed a deal to acquire IHS Towers from Nigeria, a well-thought out turnaround for MTN, which previously spun off its tower portfolio to unlock capital and boost returns. The deal, which values IHS’ equity and debt at about $6.2 billion, paves the way for the tower group’s delisting from the New York Stock Exchange.

IHS, which was founded in Lagos, operates nearly 29,000 towers across key MTN markets including Cameroon, Côte d’Ivoire, Ghana, Nigeria, and Rwanda, serving multiple mobile network operators. Bringing the towers back in-house will allow MTN to keep the profits it currently pays to IHS, manage costs, and earn more from third-party tenants, tightening its grip on digital infrastructure across Africa.

This highlights a long-term strategic shift for MTN, effectively reversing the tower-outsourcing model it has pursued for years and bringing the infrastructure business back under direct control.[3] Parallel to this is the recent announcement by its CEO, Ralph Mupita, “MTN is on the hunt for fintech startups it can acquire and plug directly into its platform, as Africa’s largest telecom group looks to accelerate growth as a more diversified tech business.

We are actively looking out for acquisitions across payments, lending, remittance that couldbe integrated into our fast-growing fintech busines, stressing that the strategy was about accelerating growth rather than chasing exits.[4]

AfricInvest Exits EFC Zambia as NMBZ Holdings Completes Acquisition

AfricInvest has successfully exited its AfricInvest Financial Sector Fund (AFS) investment from Entrepreneurs Financial Centre (EFC) Zambia, following the acquisition of EFC Zambia by NMBZ Holdings Limited, a leading Southern African financial services group. Founded in 1994 and licensed by the Bank of Zambia, EFC Zambia is a deposit-taking microfinance institution serving micro, small, and medium-sized enterprises (MSMEs) across the country.

AfricInvest, alongside Desjardins International Development (DID), has supported the institution’s growth through strengthened governance, capital support, and capacity building. The transaction marks the next phase of development for EFC Zambia and reflects AfricInvest’s commitment to advancing sustainable financial institutions that promote financial inclusion and long-term economic impact.[5]

Beltone Acquires Baobab Group for $197.6 Million in Historic Cross-Border Deal

The Cairo, Egypt-based Beltone Holding announced a strategic 100% acquisition of Baobab Group for $197.6 million by Beltone Capital, a wholly owned subsidiary of Beltone Holding. The transaction marks Beltone’s first cross-border acquisition and the largest deal in the company’s history, underscoring management’s commitment to creating sustainable shareholder value through disciplined expansion into high-potential markets. Baobab Group is a leading provider of micro and small business finance, with a strong focus on digital solutions.

As of the end of 3Q 2025, Baobab Group served approximately 1.6 million customers and managed a loan book of EUR 848.8 million, with around 50% of loans disbursed through digital channels supported by intelligent credit-decision systems. Since its inception more than 20 years ago, Baobab has disbursed around four million loans to small businesses, with cumulative financing volumes exceeding EUR 9.2 billion. Through this acquisition, Beltone significantly expands its geographic footprint to include seven African markets: Senegal, Côte d’Ivoire, Madagascar, Burkina Faso, Mali, Nigeria and DR Congo, reinforcing its position as a leading regional financial services provider.[6]

Community Wolf Acquires Namola, Uniting South Africa’s Leading Safety Apps

Community Wolf, a South African startup focused on AI-powered public safety technology, has acquired emergency response app Namola. The deal brings together two of the country’s most recognizable safety brands at a time when crime, slow response, and distrust in existing systems remain widespread.

By integrating Namola into its platform, Community Wolf aims to create a more coordinated and data-driven safety network across South Africa.[7] Commit, a global technology services company, has announced the acquisition of SavannahTech, a fast-growing, bootstrapped firm specializing in recruiting and employing experienced software engineers across Africa. With this acquisition, Commit surpasses 1,000 engineers worldwide, reinforcing its role as a leading delivery partner for startups and private-equity-backed companies.[8]

Flutterwave Acquires Mono, Marking Silverbacks’ 10th Portfolio Exit

Silverbacks Holdings, an Africa-focused private investment firm, has recorded its 10th portfolio exit following the acquisition of Nigerian open banking fintech startup Mono by payments company Flutterwave, as the firm expands its bets into sports. The exit, completed in an all-stock deal in early January, underlines a broader pattern in African venture markets: fintech, particularly payments and infrastructure, continues to offer the clearest path to exits.

But Silverbacks is now shifting its sights to African sports, a less-invested sector. “Our successful exit from Mono, achieved through consolidation with Flutterwave, validates our early conviction in foundational African fintech,” said Ibrahim Sagna, Silverbacks Holdings Chairman.[9]

Trove Acquires UCML Securities, Bringing Brokerage Operations In-House

Nigerian fintech Trove Finance has acquired UCML Securities Limited, bringing its brokerage operations in-house as it deepens control over trade execution, compliance, and customer experience. The company has since rebranded the firm as Innova Securities Limited, which will now serve as Trove’s licensed broker-dealer.

The value of the acquisition was not disclosed. Founded in 2018, Trove Finance built its early offering by partnering with third-party broker-dealers to give Nigerian investors access to both local and international equities. While that model allowed the startup to remain compliant and scale quickly, Trove says its growing user base and expanding product suite made owning more of the brokerage stack a necessity.

“As our users’ needs grew, we wanted to enhance the experience, innovate faster, and take direct responsibility for trade execution, compliance, and governance,” CEO Oluwatomi Solanke told Techpoint Africa. “Owning Innova Securities Ltd, a fully SEC-licensed broker-dealer with decades of regulatory experience, allows Trove to do that.”[10]

Nomba Acquires Canadian PSP to Power Africa–Canada B2B Payments

African fintech Nomba has acquired a licenced Payment Service Provider and Money Services Business in Canada, establishing a regulated infrastructure to facilitate business-to-business payments between African companies and Canadian counterparts. The acquisition, completed in Q2 2025, gives Nomba on-the-ground regulatory coverage in Canada, allowing the company to move money locally within the country and connect Canadian dollar flows directly to African markets.[11]

West Africa’s regional stock market, the BRVM, advanced on Thursday, diverging from losses across global equities and digital assets. The BRVM Composite Index rose 1.84 points, or 0.5%, to close at 369.63. The benchmark is now up 2.08% over the past week, 7.57% over four weeks, and 6.91% year to date, equivalent to a 7.33% gain in dollar terms.

Gains were broad-based. The BRVM Industriels index climbed 2.94%, extending its year-to-date advance to 29.46%. Public Utilities rose 2.25%, while the Prestige, Principal, and BRVM 30 indices posted gains between 0.45% and 0.7%. The BRVM Energy index added 1.06%. The move contrasted with sharp declines in global markets. The S&P 500 fell 1.2%, slipping below its 100-day moving average, while the Nasdaq dropped 1.4%. Market volatility increased, with the VIX rising to 20.91.[12]

Six Ethiopian Banks Advance Toward ESX Listings in Market Milestone

Ethiopia’s nascent stock market is set for its first meaningful expansion after the Ethiopia Securities Exchange (ESX) confirmed six banks have advanced toward main market listings, positioning the bourse for broader investor participation before the fiscal year closes. The ESX said Awash Bank, Dashen Bank, Bank of Abyssinia, Abay Bank, Anbesa Bank and Amhara Bank have all received approval in principle, a key regulatory milestone that clears issuers to proceed toward full listing once final.[13]

The Johannesburg Stock Exchange (JSE) has announed the listing of two new ETFs on it’s main baord: the Satrix MSCI Japan Feeder ETF (STXJPN) and the Satrix Stoxx Europe 600 Feeder ETF (STXEUR). This move follows the recent launch of the Satrix Income AMETF and confirms the continued expansion of the South African exchange’s range of innovative and diversified ETF products.[14]

NSE Plans Tech Board to Lure Venture-Backed Startups to Public Markets

The Nairobi Securities Exchange (NSE) is planning a dedicated technology board to court venture-backed startups to public markets, as it seeks to shake off its reputation as a home for blue-chip companies like banks, telcos and brewers.[15]

Nigerian stocks have delivered the world’s second-best dollar returns this year, climbing 31% in 2026 and recovering $21 billion in market value lost following a sharp naira devaluation in 2024.

Total market capitalisation on the Lagos Exchange now stands at about $84 billion, roughly 58% higher than before the naira’s collapse. As reported by Bloomberg on Tuesday, Nigeria’s “benchmark index surged 31% this year, delivering the world’s second-best dollar returns.[16]

[1] https://www.ft.com/content/dc8d168f-23dc-4f41-9526-bd703e7d8921?accessToken=zwAGSew9pFfQkdPcjRaPI9xPQdOVJr1wPn2JIQ.MEUCIQDSP8kJwvv-JfmJDmrqFf_cCNLzhcd3uMC5B6l3FDLQaAIgDKmIOAa8ZRtl0wTNMTuOIZbZhK8jrxTTeuZQPYzzPy8&sharetype=gift&token=e8939a93-41dd-4204-b843-a8c9d54df6e0

[2] https://techcabal.com/2026/02/10/access-bank-bidvest-bank/

[3] https://techcentral.co.za/mtn-group-in-talks-to-buy-out-ihs-towers/277222/?utm_source=techsafari.beehiiv.com&utm_medium=newsletter&utm_campaign=this-week-in-african-tech&_bhlid=a5258c21bbdb9617640690de0802996db2d84f9c

[4] https://www.semafor.com/article/02/04/2026/mtn-targets-fintech-acquisitions

[5] https://www.africinvest.com/images/doc/255_doc.pdf

[6] https://techafricanews.com/2026/02/12/beltone-completes-landmark-197-6m-acquisition-of-baobab-expands-across-africa/?utm_source=techsafari.beehiiv.com&utm_medium=newsletter&utm_campaign=this-week-in-african-tech&_bhlid=fae25f21e7bd9222f5d90e249d8ce21c814f9f9c

[7] https://www.startupresearcher.com/news/community-wolf-acquires-namola-to-unify-south-africa-s-safety-tech?utm_source=chatgpt.com&utm_medium=email

[8] https://markets.businessinsider.com/news/stocks/commit-acquires-savannahtech-surpasses-1-000-engineers-to-expand-global-delivery-and-talent-footprint-1035743751?mc_cid=dbc00998f6&mc_eid=40087f4350

[9] https://techcabal.com/2026/01/13/silverbacks-10th-exit-from-monos-acquisition/?mc_cid=dbc00998f6&mc_eid=40087f4350

[10] https://techpoint.africa/news/trove-finance-acquires-ucml-securities/?mc_cid=dbc00998f6&mc_eid=40087f4350

[11] https://technext24.com/2026/02/04/nomba-acquires-canadian-payment-firm/?utm_source=substack&utm_medium=email

[12] https://www.dabafinance.com/en/news/west-africa-bourse-outperforms-global-risk-assets