Over the past few years, Traderoot Africa has seen the African continent experience incredible growth in the fintech industry. In the first half of 2021, African fintech start-ups secured a massive $330 million in funding from Venture Capitalists (VCs). This figure represents more than double the amount raised in 2020, according to a report from Disrupt Africa.
The Stats Coming Out of Africa
According to the report by Disrupt Africa, there was a 17.3% growth in African fintech start-ups from 2019 to 2021. We can only expect this number to rise drastically over the coming years as investor confidence is boosted. Africa boasts nearly 600 active fintech start-ups, with 69.7% of these start-ups in Africa’s big three markets: Nigeria, South Africa and Kenya. The report further found that fintech businesses are also more likely to be acquired than those in any other space.
“Africa is an exciting top in the fintech space, the growth over the past year has been incredible,” says Craig Ireland, Traderoot Africa CEO. “We are grateful to have been able to play our part in assisting fintech companies with all of their needs.”
The opportunities for fintechs in Africa are vast, as around two-thirds of the population are still unbanked. The lack of traditional banking infrastructure has presented fintechs with the perfect opportunity to snatch up clients. The lack of traditional banking infrastructure has paved the way for fintech firms to revolutionise the financial services industry in Africa.
Mobile money services like M-Pesa have been thriving, the continent boasts some of the highest levels of mobile money in the world. Despite its success, there are still some challenges, these are largely due to the low cellular and internet coverage, especially in the rural parts of Africa. This suggests that mobile money services may still have significant growth in the region over the next few years.
We have no doubt that the fintech industry will continue to thrive and disrupt traditional banking in Africa in a significant way, and Traderoot Africa is excited to be part of this disruption. If you would like to learn more about innovation like this within Africa’s fintech space, contact us today and let’s set up a strategic overview of how we can assist your operation.