African fintech start-up scene thriving, but crypto in decline
August 21st 2023
Africa’s fintech start-up ecosystem grew in size by almost 20% and saw US$2.7-billion (about R51-billion) in investment flood in over the last 24 months, according to a new report released by Disrupt Africa. Every two years since June 2017, Disrupt Africa has released the Finnovating for Africa publication, which tracks the extraordinary development of the fintech ecosystem across Africa in recent years. It reveals that the fintech ecosystem is the most-populated vertical within Africa’s wider tech ecosystem, having maintained its steady growth over the last two years. Since the last edition of Finnovating for Africa in 2021, the number of start-ups operating in this space has grown by 17.7% to 678. This growth is taking place across the continent, with all major markets bar South Africa posting an increase in the number of active ventures. Egypt and Nigeria are growing especially fast, with the number of fintech companies based in those countries leaping by 66.7% and 50%, respectively, in just 24 months. Meanwhile, not only are African fintech start-ups more likely to raise funding than their peers, they are also more likely to be acquired. Disrupt Africa tracked 26 fintech start-up acquisitions between June 2021 and July 2023, compared to just seven between 2019 and 2021, and accounting for over 60% of the 43 such deals reported since 2011. This should serve to embolden both investors and entrepreneurs in the sector, as exits are the name of the game.