By 2030, Africa will be fintech’s fastest-growing region – Report

By Chimgozirim Nwokoma

Africa is expected to be the fastest-growing region for fintech between 2021 and 2030, even as revenues are projected to reach US$60 billion. This is according to a report by the Boston Consulting Group and QED Investors. South Africa, Nigeria, Egypt, and Kenya are expected to drive this growth, which would see revenues grow at a compound annual growth rate of 32 percent.

More than any other sector of the African tech space, fintech has witnessed significant growth. Startups in the space have raised more than US$2 billion since 2018 and constantly top the list of most funded sectors annually. Some of the most valuable startups in the region are also fintech startups.

Despite having a population of more than one billion, more than half of Africans do not have a bank account. Consequently, most transactions are conducted using cash, a phenomenon many countries are working to change. Even fewer have access to credit services. Less than five per cent of Nigerians have access to credit and many businesses report being unable to access it.

Money transfer remains a challenge and the cost of sending money to the region is the highest globally.

Fintechs are cashing in on this opportunity by providing Africans with access to digital financial services by leveraging growing smartphone adoption. Others like Safaricom’s M-Pesa are enabling access to financial services for customers who use a feature phone, allowing them to make mobile transfers using a mobile number. As of 2022, there were more than 184 million mobile money wallets on the continent.