International Finance
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Africa’s is booming with an increased number of fintechs

Africa fintechs
According to the International Monetary Fund, the continent's informal economy is conducive to startups with a pool of unbanked and underbanked population

Africa is becoming a popular fintech hub in the world as it comprises a massive tech community of startups, and neobanks. According to the International Monetary Fund (IMF), the continent’s informal economy is one of the largest in the world.

The IMF pointed out that Africa is a great platform for fintech startups and SMEs to capitalise on the pool of unbanked and underbanked populations. Two years ago, the continent exceeded $1 billion in venture capitals to startups.

It appears that Johannesburg, Nairobi, Lagos, and Capetown are the four emerging fintech hubs in Africa. Of the four African cities, Johannesburg houses major establishments such as Standard Bank Group, FirstRand, Absa Group, Nedbank Group and Investecenhancing its characteristics to become one of the hotbeds for fintechs in the world.

A report titled Findexable Global Fintech Rankings 2020 noted that “Nairobi is Africa’s second-largest fintech hub, with an estimated 20 percent of African fintechs and an emerging ecosystem of local investors and venture capital firms complemented by a steady rise of international investors and growing interest from global technology firm.”

Kenya is also developing its own charm in fintechs. Last year, the Monetary Authority of Singapore (MAS) and the Central Bank of Kenya (CBK) signed a fintech cooperation agreement to strengthen the country’s fintech infrastructure.

Africa has created a conducive environment to drive fintech innovation by enabling the private and public sectors to collaborate.

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