Africa’s Fintech Startups Hit 491
- June 25, 2019
- Posted by: Lead Contributor
- Category: News
Following a successful opening edition of Finnovating in 2017, disrupt Africa has released Finnovating for Africa 2019: Reimagining the African financial services landscape, which reports the number of active fintech ventures across the continent to have risen to 491 from 301 in 2017.
Africa’s fintecspace is growing rapidly at a fast pace, with the number of startups currently in operation growing by more than 60 per cent in the last two years, while fintech funding has also hit new records.
Countries like South Africa, Nigeria and Kenya are the three main markets, with 141, 101 and 78 active ventures respectively, which accounts for more than 60 per cent of Africa’s fintech startups.
Though the big three markets are growing, the biggest growth process is occurring in other markets, with countries like Uganda, Ghana and Egypt seeing their local fintech spaces erupt.
A similar pattern can is noted in terms of the type of platforms being rolled out by fintech entrepreneurs. Though startups in the payments and lending spaces remain the most prevalent, the fastest growth is occurring elsewhere, with the number of startups active in areas such as investtech and insurtech, for example, more than doubling in the last few years.
Meanwhile, there is a sharp increase in the amount of companies focusing on two or more distinct types of financial services, as African fintechs begin to “rebundle” and we see moves towards fully-fledged, all-service digital banks on the continent. This is a process that is quickening as the amount of funding coming into the sector grows. African fintech companies have raised just shy of US$320 million in funding since January 2015, and last year’s total of US$132.8 million was the best year yet.
The co-founder of Disrupt Africa.,Gabriella Mulligan, said “The financial services landscape in Africa is following a very unique trajectory, as compared to other geographies. Most remarkable about this trajectory is that is it being driven by entrepreneurs and their home-grown innovations. We hope this report affords our readers an interesting insight into the fintech revolution taking place across Africa”
Tom Jackson who is also a co-founder of Disrupt Africa also revealed that “No space has quite the potential impact of the fintech space when it comes to impact – and profits – in Africa, with startups operating such platforms able to significantly address the major issue of financial exclusion on the continent and thus promote development in all sorts of other areas. It is exciting to see the speed at which the sector is developing, therefore, but also heartening to see the signs of maturation and consolidation that will ensure its ultimate success and longevity,”
Finnovating for Africa 2019: Reimagining the African financial services is the 10th publication released by Disrupt Africa’s research and analysis arm, which aside from the flagship annual African Tech Startups Funding Report also releases deep-dives into a variety of sectors of the continent’s tech startup ecosystem. Details on all other publications can be found here.
You can read the details of African Tech Startup funding here.
At WayMaker Digital, we specialise in helping organisations to deliver on the strategic goals, by leveraging on the decades of experience and expertise of our consultants. Our specialities include Agile Software Delivery, DevOps, Insights & Analytics, Cybersecurity, Business Analysis, User Experience, User Research, Manual & Automated Testing, Robotic Process Automation, Service Design, Application development (web & mobile) & Product Management while adopting the Agile & Lean principles. If you would like to have a conversation on how we might be able to help, please get in touch.