The number of fintech companies in Africa has almost tripled since 2020, according to a report from the European Investment Bank.
The Finance in Africa report noted that the number of African companies offering new products and services in finance jumped to 1,263 at the start of 2024 from 1,049 in 2022 and 450 in 2020.
Less than a decade after the emergence of fintech, Africa boasts seven fintech unicorns privately owned startups valued at over 1bn. 70 of fintech operators in Africa are located in Nigeria, South Africa, Kenya and Egypt and attract around 80 of funding. Nigeria is the leading country in the fintech market with 28 of all the fintech companies on the continent.
The near-tripling in the number of active enterprises comes despite a difficult funding landscape - fintech investment in Africa and other regions of the world slowed dramatically in 2023, the report says. Research from the Global Private Capital Association revealed a 78 decline in fintech investment value in 2023 year-on-year, mostly driven by the sharp increase in funding costs for venture capital investments caused by global financial tightening.
Redefining the landscapeStill, fintechs are fundamentally redefining the landscape of financial services in Africa, with a wide variety of innovative financial services and products on offer especially relating to mobile money, digital payments, remittances, digital lending, buy-now-pay-later, insurance and virtual assets.
