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Green shoots in African fintech

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Mar 28, 2024
Data: FT Partners; Chart: Axios Visuals
Data: FT Partners; Chart: Axios Visuals

Funding to African fintech companies came in at $1.2 billion in 2023, 36% off the previous year, data from FT Partners shows.

Why it matters: The news isn't as dreary as it looks. It's one area of fintech where investor interest has remained elevated relative to years before 2021.

Zoom in: Funding to African fintechs first rose above $1 billion in 2021, and has stayed at that watermark.

  • The rapid rise of mobile payments in the market has drawn giants like Visa and Mastercard to begin planting seeds.
  • In late 2022, Visa announced it would invest $1 billion in the next five years in the area.

By the numbers: Private funding to all fintech companies worldwide grew modestly when 2021 and 2022 — years considered abnormally bubbly by investors — are excluded.

  • The global figure was up roughly 16% in 2023 compared to 2020, reaching $54.2 billion, per FT Partners.
  • But funding to African fintechs rose 693% to $1.2 billion.
  • Global fintech from 2022 to 2023 was down 39% to $54.2 billion.

Reality check: The continent faces unique pressures.

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