In a recent report, it discloses that Africa’s fintech startup ecosystem has experienced remarkable growth, expanding by almost 20 percent in the last 24 months.
According to the title of the report; “Finnovating for Africa,” it tracks the development of the fintech ecosystem across the continent, providing insights into regional trends, startup activity, funding, acquisitions, and a comprehensive list of African fintech startups.
Over the past two years, the number of fintech startups operating in Africa has grown by 17.7 percent, reaching a total of 678. This growth is widespread across the continent, with markets like Egypt and Nigeria experiencing particularly rapid expansion, witnessing a surge of 66.7 percent and 50 percent respectively.
Investment in Africa’s fintech sector has been substantial, with over $2.7 billion pouring into the ecosystem in the last 24 months. Since 2015, a total of 540 fintech startups from 25 countries have raised an impressive $3.6 billion in funding, making fintech the most popular vertical for investment in Africa’s wider tech space.
Furthermore, African fintech startups have seen a higher rate of acquisitions compared to their counterparts in other sectors. Between June 2021 and July 2023, reported about 26 fintech startup acquisitions, accounting for over 60 percent of all reported acquisition deals since 2011.
The report highlights the significance of Africa’s fintech ecosystem, which has maintained steady growth and attracted substantial investment over the past two years. The contributions of AZA Finance and Curacel as partners in producing this report demonstrate their commitment to fostering financial inclusion and innovation in Africa.
Using the reports aforementioned as a yardstick, the growth and investment in Africa’s fintech sector are encouraging signs for the continent’s tech startup ecosystem.
However, with continued support and investment, Africa’s fintech startups have the potential to drive economic growth, promote financial inclusion, and contribute to the development of innovative solutions for African markets, the statement stated.