Fintech startups - Afrikan Heroes

Africa Fintech Sales to Reach $ 30 Billion by 2025: McKinsey

August 31, 2022

From all indications, the potential of Africa’s fintech is yet to be scratched as revenue may soar to eight times higher than in 2020 as a growing, young and underbanked population gets more access to the Internet.

In a new report by McKinsey & Co, Africa’s fintech company revenue may soar to US$30.3-billion by 2025 — eight times higher than in 2020 — as a growing, young and underbanked population gets more access to the Internet.

The anticipated increase is part of a rapid expansion in financial services income that’s expected to grow to $230-billion from $150-billion over the same period, the consulting company said in a research report published on Tuesday.

About two-thirds of Africa’s 1.3 billion people don’t have a bank account or full access to financial services, and 90% of all transactions on the continent are still cash-based, according to the report. That creates a growth opportunity for fintech companies.

“African fintech is emerging as a hotbed for investment, with average deal sizes growing and the proportion of fintech funding in Africa increasing over the past year, bringing jobs and growth to African economies,” McKinsey said. “And the story is only just beginning.”

Financial services revenues in Ghana and francophone West Africa will enjoy the fastest growth, with Nigeria and Egypt the next quickest, it said.

Kelechi Deca

Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry

11 African Start-Ups Make The Catapult Selection

February 18, 2020

Efforts to create a more financially inclusive business ecosystem in Africa received a boost with the selection of fintech startups from across the continent to partake in this year’s edition of CATAPULT: Inclusion Africa, which helps companies focusing on financial inclusion to scale. CATAPULT; Inclusion Africa which is a brain child of LHoFT Foundation aims at identifying start-ups that focuses on building platforms that promote financial inclusion in Africa. It has the overall objective of building bridges between Africa and Europe. Those that made the cut in this year’s edition are Investment robo-advisory platform A-Trader and Digital Wallet Dundiza , both of Tanzania, savings startup Esusu and insurtech startup PaddyCover from Nigeria.

Others are CinetPay, an Ivorian based payments startup, Ugandan payments startup Eversend, Rwandan savings startup Exuus, Ghanaian pensions startup People’s Pension Trust, Kenyan digital financial marketplace Pezesha, South African payments startup uKheshe, and UK-based financial services marketplace SympliFi.

According to a statement from the Foundation, selected start-ups will be provided with access to a tailor made programmes that encompasses intensive mentoring, coaching, peer-to-peer learning and dedicated workshops.The programme will also include sessions on business model mapping, investment readiness, funding and capital raising, social impact, scaling strategy, building teams, operational management, advisory meetings with investors, and pitch development.

Kelechi Deca

Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry

UK Government Pours Kshs 1.3 Billon Into Catalyst Fund For East African Fintech Startups

October 27, 2019

Fintech startups in East Africa now have a new fund to pitch to. The UK Government, through its Department for International Development, which is responsible for administering overseas aid has announced a 1.3 billion shillings ($12.5 million) investment to Catalyst Fund, a fund managed by US-based consulting firm, Bankable Frontier Associates (BFA).

Here Is All You Need To Know

According to Cytonn Investments, this investment is aimed at boosting the FinTech sector in the East Africa region, particularly Kenya, by providing access to growth capital.

Catalyst Fund specializes in early-stage venture building targeting low-income customers in emerging markets, with an aim of spurring innovation that is targeted at financial inclusion for the unbanked population in emerging markets.

Its most recent investment was in June 2019, where they announced that they had on-boarded four finance startups into its incubator program, with three having an Africa focus, these being

Chipper Cash, a mobile money transfer platform with operations in Kenya, Ghana and Nigeria,
Salutat, a Singapore-based startup that helps financial institutions to reach out to more underserved entrepreneurs, especially women, by offering lower-interest loans and financial literacy training, with operations in Thailand, Myanmar, Kenya, and Zimbabwe, and
Turaco, a Kenyan low-cost insurance provider targeting low-income customers. The fund has garnered the support of firms such as the Bill & Melinda Gates Foundation and JPMorgan Chase & Co.

This investment is an indicator of the positive outlook for the FinTech sector.

Analysts from Cytonn Investments expect the FinTech sector to continue to witness more investments, given the untapped potential in credit and credit-related industries in Africa, highlighted by the significant difference in credit extension activity in Africa compared to other world regions, which results in slow growth of enterprises, especially MSMEs, both through a lack of access to growth capital as well as lack of access to consumption capital, thus limiting the spending power of consumers to the populations served by these enterprises.

Charles Rapulu Udoh

Charles Rapulu Udoh is a Lagos-based Lawyer with special focus on Business Law, Intellectual Property Rights, Entertainment and Technology Law. He is also an award-winning writer. Working for notable organizations so far has exposed him to some of industry best practices in business, finance strategies, law, dispute resolution, and data analytics both in Nigeria and across the world