Even during a global economic crisis African fintech companies finds it an important issue to deal with in the industry. Securing funds for African fintech startups is a necessary thing that must be handled with diligence.
This has, however, led the stakeholders in this industry to strategize on how to sustain the growth recorded in the continent in recent years.
This has been the subject of discussions at the ongoing 5th Africa Fintech Forum in Ivorian capital city of Abidjan.
The forum started on Tuesday, November 22, 2022, with a focus on what is next for fintech in Africa.
According to speakers, the continent’s fintech must now work together to achieve a common goal of improving payment across Africa. They said the collaboration will also help them sustain the current growth even as external funding is limited.
Gary Ceaplen, CEO of HPS Business, who delivered the keynote address, said in particular that while the U.S. and Asia have dominated the fintech industry in the past and present, respectively, Africa must prepare for the future to benefit from the next fintech revolution. But he pointed out that growth in financial services across Africa’s countries will not be equal. He said:
- “While the lion’s share of value in the market (approximately 40% of revenues) is currently concentrated in South Africa, which has the most mature banking system on the continent, Ghana and Francophone West Africa are expected to show the fastest growth at 15% and 13% per annum, respectively until 2025.
- “Nigeria and Egypt follow each other with an expected growth rate of 12% per annum over the same period. Overall, we anticipate that the growth opportunity in Fintech is likely to be concentrated in 11 key countries key markets Cameroon, Ivory Coast, Egypt, Ghana, Kenya, Morocco, Nigeria Senegal, South Africa, Tanzania, and Uganda, which together accounted for 70% of Africa’s GDP and half of its population.”
Dr. Segun Aina, president of the Africa Fintech Network, also spoke at the session. He said the Network has been striving to unite fintech across Africa while engaging central banks across the country on the issue of regulation. He said:
- “Our mandate in Africa Fintech Network is to be the platform that unites African fintech and serves as the voice of African fintech in the world. We are advocating for everything fintech in Africa to address the challenges that fintech is facing, number one of which is regulatory issues. And to address this, we are partnering with the African central banks to ensure that we have one mind so that regulations by the central banks, which are the primary regulators for fintech, will be done in a way that will not stifle innovation, but promotes innovation.”
Aina responded to the topic of what comes next for African fintech by saying that the answer, which will be presented at the forum, will reveal the next market opportunities for the sector on the continent.
- “What’s next for African fintech is a very big question because funds are drying up today for African Fintechs. Fintechs in Africa in the last 3 to 4 years had witnessed an influx of funds, but this year has seen some slowing down. Today, we are witnessing a lot of layoffs even in fintech. So, what is next for African fintech, where is the next opportunity for them? We expect the answers to be provided at this forum,” He said.
The African Fintech Forum has proven to be an authoritative voice, particularly among French-speaking Africa. This year has recorded over 500 participants from across Africa, including fintech associations from Nigeria, South Africa, and Ghana, among others.
According to the founder and convener of the forum, Mr. Alex Sea, the Africa Fintech Forum has become a catalyst platform, an insightful and inclusive hub that addresses challenges, opportunities, and actions to develop the African fintech industry.
