African fintech boom attracting global investments

The African fintech industry is booming. From the number of fintech to the size of funding, African fintech is the newest investment magnet.

Sector studies show that the African fintech industry has almost tripled in just one year (2020-2021). The estimated number of tech start-ups in Africa is now at 5,200; no surprise, almost half of these are fintechs.

According to the study, as of 2020, African fintechs are reeling in annual revenues in excess of US$6 billion, enough to describe the industry as booming.

The African fintech story only makes sense as the financial services sector on the continent has moved from reliance on traditional funding options like banks to smaller, more accessible, and less stringent funding options.

The African fintech industry has also mushroomed riding on the pandemic-caused economic slowdown. While banks struggled to stay afloat, even with fiscal cushioning from governments, African fintech filled the gap.

On a continent where cash is still king, African fintech is scooping in huge amounts and exhibiting even larger potential growth. Notably, one of the fastest-growing African fintech hubs in East Africa is Kenya, Uganda, Rwanda, Burundi, South Sudan, Tanzania, and now, the Democratic Republic of Congo.