Africa Fintech Hub - online one-stop shop to strengthen fintechs across Africa

Africa is home to an estimated 573 fintech start-ups, 200 of which raised $350 million in the first quarter of 2020[1]. Fintechs have played a critical role in extending digital financial inclusion across the continent through and beyond COVID-19 and in enabling Africa’s transition into a digital future under the African Continental Free Trade Area (AfCFTA). Despite the potential of the fintech sector to contribute to digital financial inclusion, the African sector significantly lags behind those in other regions like Latin America and South-East Asia.

A survey of 100 fintechs across 17 African countries[2] by Cenfri and AFN, under their African Fintech Radar initiative, found that African fintechs experience an array of challenges that impact access to markets, raising funding, navigating regulation, and developing products that align with the needs of financially underserved market segments, thereby undermining their contribution to creating a more inclusive digital finance ecosystem.

There are many initiatives focused on providing technical assistance and acceleration support to fintechs. For example, in 2019 alone, there were nearly 650 innovation hubs supporting Africa’s innovators[3].  However, investors still focus on established fintech markets and most venture capital investments in Africa are typically smaller than in other markets, often targeting the seed stage compared to growth stage[4].  Fintechs also struggle with knowledge gaps of how to engage regulators and lobby for policy and regulatory framework changes that impact their work.

[1] Fintech In Africa Scale Stoppers: Ramps & Roadblocks (2021). Available here:  https://findexable.com/africa-fintech-radar/

[2] Côte d’Ivoire, Egypt, Ghana, Kenya, Mauritius, Morocco, Mozambique, Niger, Nigeria, Rwanda, Sudan, South Africa, Seychelles, Tanzania, Tunisia, Uganda and Zambia.

[3] https://briterbridges.com/innovation-maps

[4] Fintech In Africa Scale Stoppers: Ramps & Roadblocks (2021). Available here:  https://findexable.com/africa-fintech-radar/