**Fatshimetrie: Transformations in Africa’s Tech World**
In recent years, Africa’s tech sector has been experiencing major upheaval and transformation. Massive layoffs in the tech industry have been attributed to the need for strategic shifts in favor of emerging technologies such as artificial intelligence (AI).
A 2017 McKinsey report predicted that up to 400 million jobs worldwide could be lost by 2030 due to automation, fueled in part by AI and robotics. This was confirmed by a CNN report that indicated that approximately 10% of American workers hold jobs at greatest risk of disruption due to the rapid evolution of artificial intelligence.
According to a report by Business Financing UK and data analysed by Layoffs.fyi, the largest employee layoffs at tech companies globally over the last four years have been concentrated in different countries and continents depending on the number of employees laid off by a company and the period.
**Top 10 Tech Layoffs in Africa Since 2020**
The table below shows the top 10 tech companies in Africa that laid off the most staff during the period:
1. Jumia: E-commerce, 900 employees laid off in Nigeria in November 2023.
2. Alerzo: E-commerce, 400 employees laid off in Nigeria in June 2023.
3. Renmoney: Fintech, 391 employees laid off in Nigeria in April 2020.
4. Copia: E-commerce, 350 employees laid off in Kenya in July 2023.
5. Wave: Fintech, 300 employees laid off in Ghana in July 2022.
6. Twiga: Agritech, 283 employees laid off in Kenya in August 2023.
7. Twiga: Agritech, 211 employees laid off in Kenya in November 2022.
8. mPharma: Medical, 150 employees laid off in Ghana in April 2023.
9. Alerzo: E-commerce, 100 employees laid off in Nigeria in November 2023.
10. Bitmex: Crypto, 75 employees laid off in Seychelles in April 2022.
The African tech sector has seen significant layoffs since 2020, with leading e-commerce platforms such as Jumia and Alerzo laying off over 1,000 employees in total.
Leading the pack, Nigeria was the country with the highest number of layoffs, with online retailer Jumia laying off 900 employees in a single event, far more than any other tech company in Africa. Nigerian B2B e-commerce company Alerzo laid off 400 employees, followed by fintech brand Renmoney (391 employees).
**Conclusions**
This panorama of layoffs in the tech sector in Africa demonstrates the profound changes and challenges that companies on the continent must face. In a context of rapid evolution of emerging technologies, it is imperative for African companies to adapt and transform to maintain their competitiveness and growth on the global stage. Layoffs are certainly painful, but they are often a sign of an industry in transition, ready to embrace new challenges and opportunities to shape the future of the tech sector in Africa.