The COMESA Competition Commission (CCC), the regional watchdog overseeing fair trade across Eastern and Southern Africa, has initiated a formal inquiry into the merger between Kenya’s Wasoko and Egypt’s MaxAB B.V. This merger, finalized in August 2024 through an all-stock transaction, created one of Africa’s largest digital commerce and fintech platforms, now serving over 450,000 merchants and reaching an estimated 65 million consumers across Kenya, Rwanda, Egypt, Morocco, and Tanzania.
In a public notice issued in early October 2025, the CCC stated that it is reviewing the transaction to assess whether it could “substantially prevent or lessen competition in the Common Market” or conflict with public interest. The Commission has invited stakeholders, including competitors, suppliers, and customers, to submit written representations by October 24, 2025, as part of its evaluation process.
A Merger of Equals Amid Financial Pressures
The merger brought together two venture-backed startups that had independently sought to digitize Africa’s fragmented retail supply chains. Wasoko, formerly Sokowatch, had emerged as a standout in East Africa, raising over US$230 million and reaching a valuation of US$625 million before the merger. MaxAB, founded in Cairo, had established dominance in North Africa’s B2B distribution market and built a growing fintech arm offering digital payments and merchant financing.
However, both companies faced mounting financial pressures, including high operational costs and a global venture capital slowdown. These challenges prompted the merger, which Wasoko founder Daniel Yu described as a “merger of equals.” The goal was to consolidate resources and scale more efficiently across the continent.
Leadership Transition and Operational Restructuring
Following the merger, significant leadership and operational changes occurred. Daniel Yu stepped down from his full-time role in September 2025 to focus on personal projects, though he remains an adviser. The combined company is now led by Belal El-Megharbel, MaxAB’s co-founder and CEO, operating from Cairo.
The integration process has not been without friction. Wasoko closed its Zanzibar office, paused operations in Uganda and Zambia, and laid off over 100 employees in late 2023. Additionally, several senior executives from Wasoko’s Kenyan team, including the CFO, CTO, and Head of HR, exited in early 2024 as the company consolidated its leadership under MaxAB’s Cairo-based management.
Strategic Expansion and Market Consolidation
Despite these challenges, the merged entity has continued to expand. In early 2025, it acquired Fatura, an Egyptian B2B marketplace, extending its reach to 16 cities across Egypt. The company has also deepened its fintech offerings, including credit financing and digital payments, with over $20 million in credit disbursed and a repayment rate exceeding 99%.
The CCC’s inquiry will determine whether this consolidation of market power could disadvantage smaller players or reduce competition in key markets. The outcome could have significant implications for the future of digital commerce and fintech in Africa.
