Africa’s fintech market set to soar with $65bn by 2030.

January 23, 2024
1 min read

Africa’s fintech market is projected to reach $65 billion by 2030, with a compound annual growth rate (CAGR) of 32%. The growth is driven by countries like South Africa, Nigeria, Kenya, and Egypt, which are exploring new financial ecosystems to serve underbanked and unbanked citizens. Just under 500 million people in Africa are unbanked, while over 410 million are underbanked. The report suggests that fintech could be the solution to improve financial access in the region.

Africa’s fintech market is growing faster than other regions in the world. By 2030, it is expected to grow 13 times, followed by Latin America with a 12.5 times growth rate. In terms of revenue, however, Africa’s fintech market is predicted to be the smallest, at $65 billion, compared to $125 billion in Latin America, $190 billion in Europe, $500 billion in North America, and $600 billion in the Asia-Pacific region.

The report highlights that African companies are in a good position for fintech market growth. The continent has embraced fintech services, including mobile money services offered by telcos and fintech services from banks. African fintech services are often innovative, providing financial freedom to local users. Demographic shifts and population growth in Africa will further deepen the need for financial access and expand opportunities in payments and lending.

Payments currently dominate the fintech segment and are expected to remain the largest use of fintech until 2030. Business-to-business-to-any-user (B2B2X) and B2B services are projected to become the next big thing in the market. This emerging business model combines telecoms and IT services with applications used by companies to offer services to their customers. B2B fintech revenue is projected to grow at a 32% CAGR until 2030 and could benefit the hundreds of millions of small business owners in Africa.

Regulation in the fintech sector in Africa is still fragmented across countries. However, it is crucial for regulators to avoid over-regulation that stifles innovation. The role of regulators is to create a level playing field and enable easy pathways for fintech businesses to become licensed and accredited. The growth of fintech services in Africa is expected to continue, and businesses need to adapt and enable fintech payments to reach underbanked or unbanked customers.

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