Who would have thought that Africa’s Fintech startups could raise $320 million in funding in 4 years? This has resulted in a 60% surge of the ecosystem in the last two years with Nigeria leading the investments in 2018.
The continent’s fintech firms have grown to 491 from 301 in 2017, while the $132.8 million raised in 2018 has been the sector’s best-ever year, according to the Finnovating for Africa 2019: Reimagining the African financial services landscape report.
The annual report by Disrupt Africa has been tracking active fintech startups for the past four and a half years in 28 countries.
“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,” says Disrupt Africa co-founder Tom Jackson.
Last year 210 African tech startups raised $334.5 million, according to his African Tech Startups Funding Report.
Nigeria led the investments in 2018 with 58 startups raising $94.9 million, followed by South Africa with 40 businesses that raised $59.9 million, and Kenya was third.
Fintech investment was still the most popular, bringing in 39.7% of total funds “South Africa, Nigeria and Kenya remain the main three markets, with 141, 101 and 78 active ventures respectively, accounting for 65.2% of Africa’s fintech startups,” Jackson says.
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