In Africa’s tech start-up scene, Fintech has been the center of attraction for close to 6 years now, which has continued to overshadow all other start-ups in funding. In 2021, Fintechs in Africa dominated the fundraising where it accounted for nearly $3 billion, or two-thirds of all investment realized by start-ups across the continent.
With an increase in mobile phone usage and internet penetration in the African region, it has triggered an increase in funding for these start-ups, most especially fintechs.
Recent research from blockchain-based mobile network operator, World Mobile company, revealed that African business leaders are forecasting a surge in spending on tech start-ups as foreign direct investment and improved internet connectivity will no doubt establish the African continent as a tech superpower.
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While conducting research, the world mobile company reportedly interviewed 100 senior executives at companies based in the African region, countries such as Nigeria, Tanzania, Angola, Cameroon, Botswana, South Africa, Ethiopia, and Ghana.
It disclosed that more than half, which is an equivalent of 54% of African executives, expect spending on tech start-ups on the continent to more than double by 2025 to $10 billion or more. About 75% of these executives believe investments will come from Western countries, while 66% believe China will be a major source of investment.
About 90% of executives believe that Africa’s tech ecosystem will grow by at least its current size in the next 3 years with 15% expecting it to double in size. They believe that the massive growth of Africa’s tech ecosystem will expand the continent’s role in playing a huge role by supplying technology to the rest of the world.
Over the years, it has been a feeling of ecstasy that the negative perception once held about the African region is gradually changing. The region has witnessed a significant rise in its status as the region is fast becoming a hotbed for fintechs.
Today, the continent accounts for about 7 start-up unicorns worth over $1 billion. The tech revolution in the continent continues to redefine the possibilities for individuals and societies.
Some have predicted the continent will be a tech superpower in the future, due to its rapidly expanding tech start-up ecosystem. Some tech creators in the region are constantly creating incredible innovations which have seen the region witness an influx of investors.
The potential for tech on the continent is indeed limitless. These tech innovations have continued to solve problems the region is often faced with, most especially mobile money transfers.
With the arrival of these tech start-ups, it has no doubt eased the way of doing business in the region. With each passing day, different fintech innovations are being invented. It is really interesting to know that the continent has not even scratched the surface, as it is only starting. Given its large and developing population, Africa is a currently untapped fintech expansion opportunity.