The initial surge of digital commerce across Africa was largely propelled by fintech innovations and e-commerce platforms that addressed obvious challenges such as payment processing, accessibility, and logistics. Yet, according to a recent analysis by TechCabal Insights, the continent’s next billion-dollar breakthroughs will emerge not from launching more consumer-facing apps, but from enhancing the underlying, often unseen systems that facilitate trade, regulatory compliance, financial services, and business analytics.
Based on comprehensive data collected from over 2,000 African enterprises and perspectives from entrepreneurs, investors, and policymakers, the report highlights where innovation has flourished and where significant gaps persist. While Africa’s commercial landscape is evolving, foundational operational challenges-such as navigating regulatory frameworks, securing business insurance, and transforming transactional data into actionable insights-remain largely unaddressed.
Investment trends reflect this shift. Since 2019, Africa’s e-commerce industry has attracted $2.27 billion in funding, with nearly half directed toward retail technology. However, investors are increasingly cautious, favoring B2B solutions that tackle essential, non-negotiable business problems-referred to as “painkillers”-over flashy consumer startups, or “vitamins,” that often consume capital without sustainable returns. Venture capital firms like Ventures Platform and Capria Ventures have expressed their commitment to backing companies that develop the digital infrastructure critical for scalable commerce, including fintech platforms, logistics networks, and compliance tools.
Mobola da-Silva, Partner at Capria Ventures, shared, “Our investments focus on companies leveraging AI to evaluate creditworthiness through platform activity instead of traditional bank statements, enabling loan approvals and disbursements within minutes rather than weeks.”
This evolution is partly a response to market saturation. The sectors dealing with payments, logistics, and e-commerce-termed the “Y areas” in the report-have become intensely competitive “red oceans,” where profit margins shrink and differentiation blurs. Dotun Olowoporoku, Managing Partner at Ventures Platform, observes, “The frontier for creating value has moved beyond these crowded spaces.”
Entrepreneurs who once prioritized rapid consumer acquisition are now focusing inward, addressing the core mechanics of business operations such as payment processing, goods distribution, inventory insurance, and sales data interpretation.
The report emphasizes that the future belongs to enterprises constructing Africa’s commercial backbone. This includes startups digitizing supply chains, integrating credit facilities directly into retail platforms, and automating cross-border compliance. For small retailers and medium-sized businesses, these innovations are indispensable rather than optional.
Ismael Belkhayat, founder of Moroccan B2B platform Chari, highlighted the necessity of addressing both customer-facing and B2B operational challenges. His company combines inventory management, payment solutions, and micro-insurance into a unified platform, exemplifying the emerging trend of bundling essential services into cohesive ecosystems.
“Addressing financial inclusion is fundamental to transforming Africa’s retail distribution,” Belkhayat stated. “The future of commerce lies not in consumer apps but in resolving these deep-rooted operational challenges.”
While platforms like Jumia, Flutterwave, and M-Pesa have become emblematic of Africa’s dynamic digital economy-turning mobile devices into banking and marketplace hubs-the report argues that the real opportunity lies in developing sophisticated solutions that empower millions of small and medium enterprises to operate seamlessly.
From Lagos to Nairobi to Casablanca, innovators are quietly revolutionizing the less glamorous but critical “engine room” of commerce. This includes advanced supply chain digitization, embedded financial services, automated compliance, post-sale logistics, and business insurance. The report stresses that Africa’s commerce ecosystem requires not just more payment options but robust infrastructure that sustains trade, data-driven decision-making, and resilient business models.
This transformation is already evident in various markets. In Nigeria, OmniRetail has created a platform linking manufacturers, distributors, and over 150,000 retailers, enabling streamlined inventory ordering, credit access, and digital payments. By consolidating goods and financial flows, the company achieved profitability in 2024, defying the trend of high-burn startups.
In North Africa, Chari’s integration of payments, micro-insurance, and credit within its B2B platform demonstrates how deep operational solutions foster customer loyalty and business stability. Similarly, East Africa’s M-KOPA embeds financing into everyday devices like smartphones, empowering informal workers to build credit histories and connect with digital marketplaces.
These enterprises exemplify a broader shift in investor focus toward innovations that convert informal and formal economic activities into verifiable data, bridging the trust gap between SMEs and financiers and fueling the next stage of economic expansion.
The report also highlights a significant change in trade dynamics, with Africa’s commerce increasingly oriented toward South-South corridors involving China, India, Brazil, and Gulf countries, rather than traditional North-South routes. This realignment necessitates new digital infrastructure to facilitate cross-border payments, regulatory compliance, and logistics.
“Digitizing supply chains and financing within South-South trade corridors will shape the next chapter of African commerce,” predicts Olowoporoku. “Those who master transparency, trust, and financing across these routes won’t just build large companies-they will architect Africa’s future trade ecosystem.”
Policy coordination will be crucial for this next phase. Nigeria’s Minister of Trade and Investment, Dr. Jumoke Oduwole, emphasized in the report that harmonizing trade regulations across the continent is vital to unlocking the full potential of the African Continental Free Trade Area (AfCFTA). While private sector innovation can develop the necessary tools, supportive public policies must pave the way.
Demographic and connectivity trends underscore the urgency. Africa’s population is projected to reach 1.55 billion by 2025, with nearly half having internet access. Yet, despite rapid digital adoption, indices such as the Africa Infrastructure Development Index and the ICT Development Index reveal that inadequate logistics and inconsistent governance continue to hinder substantial commercial growth.
South Africa leads in digital governance readiness, whereas countries like Nigeria and Kenya occupy mid-level positions, highlighting the critical role that deeper innovation and improved policy frameworks can play in advancing trade and compliance across the continent.