Africa’s Fintech sector is developing at a rapid pace, as the number of startups functioning on the continent has grown by over sixty percent since 2017, while funding attained new records as well.
This is as per a report from Disrupt Africa’s Finnovating for Africa 2019, known for keeping records of the number of operating Fintech companies all around Africa.
The report claims Africa’s Fintech ventures have grown from 301 to 491 in the last 2 years.
According to Disrupt Africa, SA, Nigeria, and Kenya are still the 3 key markets with 141, 101 and 78 active ventures respectively, which makes up for 65.2 percent of the total number of Fintech startups across the continent.
The report read, “Yet the share of the overall total claimed by these three countries is in decline as the sector spreads across the continent, with FinTech start-ups tracked in 28 African nations. Though the big three markets are growing, the biggest developments are occurring in other markets, with countries like Uganda, Ghana, and Egypt, in particular, seeing their local FinTech spaces explode.”
An identical trend was discovered as regards the kind of platforms being released by Fintech entrepreneurs, according to the company. Even if startups in the payment and lending spaces are still the most relevant, the most rapid growth is happening somewhere else, with the number of startups active in areas like investtech and insurtech, for instance has quickly boomed in recent years.
Disrupt Africa revealed, “Meanwhile, there is a marked increase in the number of companies focusing on two or more distinct types of financial services, as African FinTechs begin to ‘rebundle’ and we see moves towards fully-fledged, all-service digital banks on the continent. This is a process that is quickening as the amount of funding coming into the sector grows. African FinTech companies have raised just shy of US$320-million in funding since January 2015, and last year’s total of US$132.8-million was the best year yet.”
Co-founder of Disrupt Africa, Gabriella Mulligan added, “The financial services landscape in Africa is following a very unique trajectory, as compared to other geographies. Most remarkable about this trajectory is that is it being driven by entrepreneurs and their home-grown innovations. We hope this report affords our readers an interesting insight into the FinTech revolution taking place across Africa.”
Another co-founder, Tom Jackson, had this to say, “No space has quite the potential impact of the FinTech space when it comes to impact – and profits – in Africa, with start-ups operating such platforms able to significantly address the major issue of financial exclusion on the continent and thus promote development in all sorts of other areas. It is exciting to see the speed at which the sector is developing, therefore, but also heartening to see the signs of maturation and consolidation that will ensure its ultimate success and longevity.”