Africa Fintech Start-ups Growth: Nigeria Maintains Control.
The number of fintech start-ups domiciled in Africa rose to 576 in 2021 atest report study from Disrupt Africa, a 17.3% leap from 491 start-ups that were operating in Africa in 2019.
This was revealed in a study report by Disrupt Africa. Since 2017 number of 307, a 90% increase has been recorded to date.
Shepherding the herd of change is Nigeria. In West African region, “Nigerian figures were up 42.6 percent on 2019. In Ghana, fintech companies grew by 25% over the same period while Ivory Coast’s count was up 100%”
Notwithstanding, as the report findings show, three countries; Nigeria, South Africa and Kenya lead Africa Fintech Start-up ecosystem.
For example, the reports shows that out of all fintech start-ups that were monitored from 2019 to 2021, 391 were from this three countries. South Africa has a total of 154, Nigeria 144 and Kenya 93
Results showed that resurgence of this start ups is due to covid-19 restrictions.For example, data reveals that after the marginal drop of 2019, the proportion of payments and remittances from fintech start-ups grew in this three countries.
The percentage of growth shows, “South African payment and remittances start-ups grew by 27.3%, a figure seven percentage points higher than its 2019 growth rate.
In Kenya, the number of fintech start-ups increased by 21.5%, up from the 15.4% growth recorded in 2019. However, in Nigeria — which has consistently outperformed both South Africa and Kenya since 2017 — the number of payments and remittances-related fintech start-ups grew by 33.3%. This is only marginally higher than the 2019 growth rate of 32.7%.”
When it comes to funds raised, the report shows that Nigeria has been dominating since 2015. It noted, “of the 277 fintech funding rounds tracked by Disrupt Africa between 2015 and mid-2021, 108 of these rounds went to Nigerian startups, totalling $467,901,000 in investment and accounting for 53.4 per cent of funds raised since tracking began. This is a far higher total dollar amount than any other country in Africa.”
Of note is that Disrupt Africa study found that more starts now has more than one category of operations.
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