Over 300 African startups disrupting financial services sector
More than 300 fintech startups are active across the African continent, disrupting the financial services landscape with innovative solutions that are attracting the attention of banks and investors.
According to the Finnovating for Africa: Exploring the African Fintech Ecosystem Report 2017 released by Disrupt Africa today, 301 African fintech startups are currently active; following a boom in fintech startups launching over the last two years in particular.
Since this boom began in 2015, the continent’s fintech startups have secured US$92,679,000 in investment.
The data shows fintech startups are spread across the African continent, with the Southern, West and East African regions equally active, while North Africa lags behind. South Africa, Nigeria and Kenya remain the top three hotspots for fintech startup activity, although a number of other markets are emerging as vibrant fintech destinations.
Of the nine fintech categories covered by the report, payments and remittances startups dominate the market, with 41.5 per cent of all startups focused on this space. Lending and financing also proves a popular priority for Africa’s fintech innovators.
“With so many of Africa’s citizens still without access to basic financial services, the work being done by the continent’s fintech innovators is of crucial importance and impact. We’re glad to report such thriving activity among Africa’s fintech community, and believe these local entrepreneurs are creating a new model for financial services - and financial inclusion - in Africa,” said Gabriella Mulligan, co-founder of Disrupt Africa.
“Fintech is clearly a vibrant space within the African tech scene, perhaps the most vibrant of all. Increasingly, investors are seeing the huge potential the space has to offer. We hope this report will provide valuable insights and leads to both startups and funders in the space, and contribute to the evolution of the sector for the benefit of all,” said Tom Jackson, co-founder of Disrupt Africa.