Kenya, South Africa, and Nigeria are the top fintech hubs as per a report by the Africa Fintech State of the Industry 2020 by the Africa Fintech Summit alongside EFG EV Fintech. The 3 countries have a combined 450 companies and are driven by strong demographic indicators such as early regulation, increased connectivity, and proactive governments.
South Africa was an early adopter of fintech regulations and development, spurring digital innovation and creating electronic money solutions since 2009. Estimates give South Africa to have over 200 fintech companies covering several products from insuretech, wealthtech, lending, and cryptocurrency.
Lending fintechs seem to the most popular with some of the most prolific being Lulalend and Fundrr, among others. Saving and investment fintechs are such as Prospa and 22Seven.
Nigeria hosts Africa’s most diverse fintech ecosystem boasting a population of over 200 million and home to the continent’s largest fintech ecosystem with an estimated 200 plus standalone companies. Fintechs in Nigeria is some of the continent’s largest such as Interswitch and Flutterwave.
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Lending apps such as Renmoney and Carbon use alternative credit-scoring algorithms to offer instant, unsecured, short-term loans. CowryWise and PiggyVest are prolific savings and investments alongside personal financial management.
Kenya’s fintech development has mainly been spurred by MPesa allowing users to deposit, transfer money, withdraw, access credit and savings. Mpesa has an active user-base of 30 million people of a 52 million population.
The 63-page Africa Fintech Report 2020 has been dedicated to regulators, innovators, and thought leaders driving the growth of the continent’s fintech sector.