The growth of Fintech is crucial for Africa's digital economy, as it addresses financial inclusion issues faced by over 60% of unbanked adults on the continent.

In 2024, Fintech startups in Africa attracted over $2.2 billion in funding, capturing 47% of all venture capital investment, an increase from 42% in 2023.

Investment in Fintech is concentrated in Nigeria, Kenya, Egypt, and South Africa, which dominate the market due to favorable demographics and infrastructure.

Egypt saw 70% of its equity funding go to Fintech in 2024, driven by a tech-savvy youth demographic.

Kenya leads East Africa in Fintech innovation, capturing 88% of its startup funding in 2024, largely due to the success of mobile money services like M-Pesa.

Emerging Fintech ecosystems are developing in Ghana, Senegal, and Tanzania, with Tanzania's sector growing due to mobile money adoption and regulatory support.

Tanzania's Fintech growth is bolstered by new regulations that allow startups to test innovative products in a controlled environment, fostering innovation.

Praygod Japhet from the Tanzania Startup Association emphasizes that Fintech is solving problems while providing significant returns for investors.

Fintech's transaction-based revenue models offer reliable cash flow, making it attractive to investors seeking consistent revenue streams.

Fintech underpins other sectors such as e-commerce and health tech, facilitating essential payment processing and financial services for their growth.

The scalability of Fintech allows solutions to be replicated across borders, attracting investment due to the potential for exponential growth.

Notable companies like Flutterwave, Wave, and Chipper Cash illustrate the success of cross-border Fintech operations in Africa.