Fintech in Africa

Africa is a greenfield opportunity for FinTech. One opportunity is to fundamentally change how more than a billion people pay for goods and services across an active continent. South Africa and Kenya are among the fastest growing smartphones markets in the world. 88% of Africans didn’t have a bank account according to 2015 research statistics, let alone a credit card – but they have a phone. In 2015, 183 million people in Africa, already owned a mobile wallet. That was 3x the users of ewallets in the US and expanding at 3x the annual growth rate of the US. If this continues, every African will have a mobile wallet by 2020.

The following are the outcomes of the research (publications & report reviews, international liaison, Africa sources) conducted by Legato Consultancy on payment developments in Africa in relation to the FinTech industry:

  1. 297 Million – internet users;
  2. 104 Million – active social network users;
  3. 864 Million – mobile subscription active and mobile penetration at 74% in the continent;
  4. $60 Billion – the mobile telecoms market worth;
  5. $234 Billion – the mobile telecoms market worth by 2020;
  6. $53.222 Million – transaction value in the FinTech market space;
  7. Transaction value expectation of an annual growth rate (CAGR 2016-2020) of 23.12% resulting in total amount of $122.308 Million in 2020;
  8. The markets largest segment – Digital Payments with a total transaction value of $51.937 Million in 2016.

Africa has seen some fantastic FinTech successes. See more here.

See the full article on VC4Africa here.