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Fintech in Africa is one of the most intriguing and promising sectors because of the relatively low uptake of traditional bricks and mortar banking, as well as a young and tech-savvy populace and high mobile penetration rates.
FREMONT, CA: With global interest rates at an all-time low and African tech centers like Cape Town, Nairobi, Lagos, and Cairo maturing to the point where they can support a thriving startup ecosystem, international investors are increasingly looking to invest in African firms.
Non-Africans launching African firms have benefited disproportionately from this funding in the past. This is valuable from an international perspective, but given that the continent’s significant investment possibilities revolve around developing answers to local problems, it would be foolish to overlook the value of investing in the proper local teams.
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African entrepreneurs with overseas expertise are increasingly returning home to start firms. International accelerator programs supported by global digital giants like Google push locals to innovate and find solutions to local concerns while also providing a significant opportunity for these entrepreneurs to learn from the finest in the world. As a result, local entrepreneurs with the correct combination of domestic and international experience are increasingly driving African startup success and attracting domestic and international investment.
Fintech continues to be a massive area of growth and promise in Africa. Fintech in Africa is one of the most intriguing and promising sectors because of the relatively low uptake of traditional bricks and mortar banking, a young and tech-savvy populace, and high mobile penetration rates. In addition, the digital banking revolution that has swept Europe and Asia has arrived in Africa with a vengeance, and fintech that focuses on offering low-cost, scalable access to digital services via smartphones is well-positioned to capitalize on this trend.
But, in the African setting, where cash still accounts for the majority of trade-related payments, fintech solutions must handle the requirement for both virtual and physical payments, as well as “banking” distribution. Thus, the convergence of non-physical financial services and currency and scalable distribution is becoming a hot topic.
The ability of African founders to guide the way to generate commercially innovative solutions that can scale effortlessly and compete throughout the globe on the back of proprietary technology is perhaps the most exciting and rewarding trend to watch in action.
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