The African startup ecosystem is facing significant challenges due to a decline in funding, leading to an increase in startup shutdowns. In the first half of 2024, African tech startups secured only $780 million in funding, a 57% decrease compared to the same period in 2023. This funding shortfall has resulted in the closure of notable startups such as 54gene and Sendy, which struggled due to funding problems.

Several factors contribute to this reduced funding, including rising global interest rates, making capital more expensive and investors more risk-averse towards early-stage startups in emerging markets like Africa. Additionally, African startups face challenges such as unreliable infrastructure, limited access to capital, and regulatory fragmentation, making it difficult to attract and retain investment.

Internal mismanagement and leadership mistakes have also played a critical role in startup shutdowns. For example, Dash, a fintech disruptor, shut down in 2023 after burning through over $86 million in funding without achieving product-market fit. In Q1 2025, several startups also shut down, including Joovlin, Edukoya, Bento Africa, and Lipa Later.

Joovlin, a Nigerian fintech startup, aimed to empower micro-suppliers and retailers but struggled to scale its user base and generate sufficient revenue. Edukoya, a Nigerian edtech startup, faced challenges with market readiness and connectivity issues. Bento Africa, a Nigerian HR and payroll technology startup, temporarily ceased operations due to internal and external challenges. Lipa Later, a Kenyan Buy Now, Pay Later fintech startup, was placed under administration after struggling with mounting debts and failing to secure additional funding.

Despite the negative impact of startup shutdowns, understanding the reasons behind failures can lead to more resilient and adaptable business models. These shutdowns highlight the fragile state of Africa’s startup ecosystem, where many startups struggle to weather economic downturns, build sustainable models, and navigate governance hurdles. It is essential for stakeholders to address these challenges to ensure the long-term success of African startups.

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One of the key aspects of sustainable fashion is the use of eco-friendly materials such as organic cotton, bamboo, hemp, and recycled fabrics. These materials are grown and produced in a way that minimizes harm to the environment, such as reducing water usage and chemical pollution. Sustainable fashion also focuses on reducing waste by designing clothing that is made to last and implementing recycling and upcycling programs. Many sustainable fashion brands encourage consumers to repair and care for their clothing, rather than discarding them.

Promoting fair labor practices is another important aspect of sustainable fashion. This means ensuring that workers involved in the production of clothing and accessories are treated fairly and paid a living wage. Many sustainable fashion brands work with ethical factories and suppliers to ensure that their products are made in a socially responsible way.

Overall, sustainable fashion is a growing trend that is changing the way we think about clothing and accessories. By choosing eco-friendly materials, reducing waste, and promoting fair labor practices, sustainable fashion offers a more ethical and sustainable alternative to fast fashion. As consumers become more conscious of the impact of their fashion choices, the demand for sustainable fashion is expected to grow, supporting a more sustainable and ethical fashion industry.