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The Steady Rise Of Fintech In Africa

The African technology space has been getting so much attention lately and to be more specific financial technology companies also known as Fintech has been on a steady increase.

According to the International Monetary Fund (IMF), the continent’s informal economy is one of the largest in the world and it comprises a growing tech community of startups and neobanks.

The industry has been welcomed with a lot of funding capacities as it has gotten more than $1 billion in venture capitals to startups. The IMF stated that fintech is a suitable development for Africa as the African platform for financial technology startups and SMEs would capitalize on the pool of “unbanked” and “underbanked” populations.

The major cities that serve as a home to many of these startup fintech companies are Johannesburg, Nairobi, Lagos, and Capetown. According to the Findexable Global Fintech Rankings 2020 report “Nairobi boasts of being Africa’s second-largest fintech hub, with an estimated 20 percent of African fintech and an emerging ecosystem of local investors and venture capital firms complemented by a steady rise of international investors and growing interest from a global technology firm.”

The African space is a land of milk and honey for well-positioned financial technology companies that are innovative enough to provide more financial transactions leveraging on technology. Currently, the industry is enjoying a lot of series A funding and other types of funding that would help support their innovations. We have a number of financial technology companies like Cellulant, Jumo, Paga, flutterwave and so many others, with many more still in the incubation stage waiting to come out.

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