Financial services are the lifeblood of Africa’s economies. As this sector is not well-developed in most countries on the continent, Africa’s fintech startups offer excellent investment opportunities.
Fintech startups are hence and attractive investment target for tech investors. According to a recent report by Disrupt Africa, nearly 20% of fintech startups tracked raised money in the last two years and. Quartz reports: “In 2016, there was a 84% increase in the number of fintech startups secured investment compared to the previous year. In total, since 2015, fintech startups in Africa had raised $93 million in investment as of June 2017.
Investors have quite some startups to choose from. Currently, over 300 fintech startups are operational in Africa. Many of them can become very important to the future of business in Africa.
In more advanced economies, the Quartz report explains, fintech startups are focused on disrupting the traditional banking industry. In sub Saharan Africa, fintech startups are typically creating products and services to plug many of the gaps which currently exist. “Rather than offering disrupting an existing infrastructure, they are building a whole new infrastructure of their own in Africa.”
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