Africa’s fintech landscape has experienced a remarkable surge, boasting nearly 20% growth and attracting an impressive influx of $2.7 billion in investments over the last 24 months, according to the fourth edition of the “Finnovating for Africa” report released today by Disrupt Africa. The publication, a biennial initiative since June 2017, delves into the expansive development of Africa’s fintech ecosystem over recent years.
The latest report, produced in collaboration with African fintech company AZA Finance and insurance infrastructure provider Curacel, highlights the fintech sector as a pivotal and flourishing vertical within Africa’s broader tech realm. The number of startups operating in this space has surged by an impressive 17.7% to a total of 678 since the last edition of the report in 2021. This remarkable growth has been distributed across the continent, with every major market except South Africa witnessing an uptick in active ventures.
Particularly notable is the rapid acceleration in Egypt and Nigeria, where fintech companies have surged by 66.7% and 50% respectively over the past two years. These countries are spearheading the sector’s expansion and serving as beacons of innovation.
Amidst this growth, fintech stands as the leading sector for investment within Africa’s tech landscape. The report indicates that, since Disrupt Africa commenced tracking funding in the African tech startup domain in 2015, an astounding $3,635,823,965 has been raised by 540 fintech startups hailing from 25 countries. This investment level is three times higher than any other sector and showcases the confidence investors have in the potential of African fintech startups.
The report also charts the consistent upward trajectory of total annual investments since 2016, with a particularly impressive surge over the last two years. Fueled by the doubling in the number of funded ventures since 2021, the fintech ecosystem welcomed over $2.7 billion in investments in the past 24 months alone.
Notably, African fintech startups are proving to be attractive acquisition targets. The report records 26 fintech startup acquisitions between June 2021 and July 2023, marking a significant increase from the seven acquisitions reported between 2019 and 2021. This surge in acquisitions accounts for over 60% of the 43 such deals reported since 2011.
Tom Jackson, co-founder of Disrupt Africa, stated, “This report, released every two years, is one of our flagship publications, tracking 24 months of remarkable development in the African fintech space. We’re thankful to our partners for helping make it happen.” The collaboration with industry leaders like AZA Finance and Curacel underscores the commitment to fostering financial inclusion and innovation across Africa.
Perry Braun, Head of Marketing at AZA Finance, remarked, “We take great pride in our inclusion in this year’s Disrupt Africa report. This collaboration comes at a significant moment as we have recently expanded our payment corridors to include multiple African countries, furthering our commitment to fostering financial inclusion.”
Henry Mascot, CEO of Curacel, expressed his enthusiasm, saying, “We are happy to partner with Disrupt Africa to produce this piece, shedding light on the insurtech revolution in Africa and its immense potential.”
As Africa’s fintech landscape continues to evolve and thrive, the report serves as a testament to the sector’s undeniable growth and potential. With dynamic startups, substantial investments, and an environment ripe for innovation, Africa’s fintech journey is only just beginning.
