Browsing: Africa’s fintech revolution

With financial inclusion in mind, governments are taking notice and offering more supportive regulatory frameworks, ever further assuring that the African fintech industry growth rivals that of more mature markets, the likes of Vietnam, Indonesia, and India.

Despite the high potential seen in East Africa, with countries like Kenya standing out, South Africa still commands approximately 40 per cent of the industry revenues.

On the western part of the continent, too, in places like Ghana, growth is at 15 per cent per annum and will only get higher all through 2025. Then you have the larger economies coming in; Nigeria and Egypt are both expected to enjoy annual growth rates of 12 per cent over the same period.

While growth rates at this early stages are higher in less developed East African countries, economies with more mature financial systems and digital infrastructure, the likes of South Africa stand a greater chance of executing more innovation in the fintech industry and implementing security measures such as regulatory technology including anti-money laundering.

The service is now available to many people, including first-time borrowers, who can reap the benefits of a safe and regulated lending solution.

When the transaction is complete, the funds are transferred immediately into the user’s VodaPay Wallet. It can be used directly for in-app purchases, such as buying pre-paid electricity and water, paying bills, using scan-to-pay technology in stores, and sending money to friends and family members.

Because its fees are lower than those charged by traditional providers of short-term cash advances, this cutting-edge product has the potential to revolutionise the industry.

These figures place Africa among the world’s fastest-growing tech countries in terms of VC growth year over year. In Silicon Valley, these figures represent a day and a week. 

The potential that investors and founders are looking for is to bring substantial swathes of Africa’s unbanked population online. 

According to numerous estimates, including The Global Findex Database, Africa has the highest percentage of unbanked people in the world, as well as a considerable number of underbanked SMEs and consumers.