- Zambia reduces interest rates on student loans by 5 per cent
- Twiga Foods raises undisclosed funding despite massive layoffs
- No more excuses: Commonwealth to call for accelerated action on climate crisis at COP28
- London’s Verto and UBA spearhead cross-border payments in East Africa
- Mozambique’s $80 Billion Green Energy Gamble: A Strategic Shift with Global Implications
- Financial professionals must lead Africa’s switch to sustainable growth
- Africa-Europe team pioneers study for severe malaria response in isolated rural areas
- Building bridges: President Biden invites Angolan counterpart João Lourenço for talks
Browsing: African Fintech
- Rwanda and Kenya lead E. Africa in the list of most entrepreneurial countries in Africa.
- All other five East African countries do not make Africa’s top 10 list.
- Fintech remains the leader in entrepreneurship growth in Africa.
Entrepreneurship is growing at a tremendous rate across Africa and is to date the most powerful catalyst for economic growth and creation of employment for youth.
According to the UN Assistant Secretary-General and Director of the UN Development Program Ahunna Eziakonwa, digital innovation is the leading enterprise in Africa.
Entrepreneurship, a solution to poverty
The diplomat also recognizes the diversity that Africa’s vastness offers numeurous opportunities but on the other hand creates new challenges to ‘creating universal solutions for issues such as poverty and food security, because each country has its own capacity for innovation.’
“I think one of the flaws in development practice in the past has been taking Africa almost as …
- The hub is a digital platform that will enable fintech associations across Africa to pool resources and knowledge, strengthen relationships and partnerships, as well as showcase the work of fintech on the continent, including those which are female-led or owned.
- The one-stop shop will be delivered through a strategic partnership between AFN and the Centre for Financial Regulation and Inclusion (Cenfri), which will provide technical support in the development of the Hub, as well as promote research, knowledge creation and other innovative initiatives.
- Although fintechs have great potential to contribute to digital financial inclusion across the continent, the African fintech sector significantly lags behind those in other regions such as Latin America and South-East Asia.
Financial Technology (Fintech) firms in Africa are set for a major boost as the African Development Bank (AfDB) and the Africa Fintech Network agreed to develop a one-stop shop for all fintech activities across the …
The first quarter of 2021 ended on a great note as two African fintech businesses gained unicorn status, a rare fit amidst a ragging global pandemic that is finally being aggressively tackled by the speedy supply of much-needed vaccines. Such is the African story – a trail of surprises in the midst of uncertainty. On 18th March 2021, Airtel Africa announced it had received a $200M investment from TPG’s Rise Fund at a valuation of $2.65B making it the latest African unicorn. Exactly a week before, March 10th, 2021, Flutterwave from Nigeria also announced a $170M investment from Avenir Growth Capital, Tiger Global Management and others at a billion-dollar valuation. In the tech world hitting a billion-dollar valuation is a big deal – you earn the name Unicorn, a mythical animal that represents the statistical rarity of successful ventures coined in 2013 by …
The last decade (2010-2020) was an important experiment in African tech ventures moving out of the “labs” and becoming real businesses that saw investors backing them with so much capital that from 2014 to 2019, the total number of VC deals doubled every year until the advent of COVID-19, which disrupted global economic activities in 2020. However, 2020 saw some notable exits including World Remit’s acquisition of Sendwave for $500M, Network International buying DPO for $288M and Stripe taking over Paystack for $200M to enter the African market as Egypt’s Fawry gain unicorn status. The IPO of Fawry the third Africa tech venture reach market capitalization of over $1 billion to after Jumia and Interswitch was overs subscribed 30 times. 2020 ended with another notable exit, with two initial shareholders in Ghanaian fintech startup, Zeepay, exiting from an initial investment of about …
Africa’s Cashless Payment Revolution, According to World Bank data, more than two-thirds of Africa’s population has no access to the formal banking system. This is largely the direct result of challenges such as underdevelopment, financial illiteracy as well as a predominantly rural based population.
These factors among others have led to a situation where banking is both inaccessible and overly expensive for the bulk of the population. Further, African economies are driven by an informally oriented economic climate; as a result, banking for many is not an option.
This situation has prompted innovative approaches to avail financial services. Among the disruptions in financial services, there has been a rise of fintech to cater for payments outside of the banking system. Some of these include mobile money payment solutions and online payment/receipt platforms.
Fintech Start Ups Attracting Investment
This sector has become one of Africa’s fastest-growing in the digital …