The story of technology in Africa in many ways is also a fintech story. The majority of Africa’s 10+ unicorns are fintech businesses.
In an article by Alex Lazarow for Forbes, the resounding conclusion is that the future of fintech – and by extension, technology more broadly – in Africa is bright. He backs it up with this five (5) reasons :
Africa Benefits From Strong Macro Tailwinds
Africa has over 90% mobile penetration and 88% internet penetration. For context, Sub-Saharan Africa has more mobile users than the United States and the United Kingdom combined. Africans spend one third of their daily lives on their phones.
This data projects that the African fintech market will be valued at $65 billion by 2030.
The Entrepreneurial Flywheel Is Starting
There are over 10 unicorns in Africa (depending how you count). This is 10 times more than there were a decade ago. And these companies are not just scaling, they are forging the next generation of founders. The local ecosystem is now ripe with early stage venture capital, mentors and a sense on how to start and scale.
In an article by Alex Lazarow for Forbes, the resounding conclusion is that the future of fintech – and by extension, technology more broadly – in Africa is bright. He backs it up with this five (5) reasons :
Africa Benefits From Strong Macro Tailwinds
Africa has over 90% mobile penetration and 88% internet penetration. For context, Sub-Saharan Africa has more mobile users than the United States and the United Kingdom combined. Africans spend one third of their daily lives on their phones.
This data projects that the African fintech market will be valued at $65 billion by 2030.
The Entrepreneurial Flywheel Is Starting
There are over 10 unicorns in Africa (depending how you count). This is 10 times more than there were a decade ago. And these companies are not just scaling, they are forging the next generation of founders. The local ecosystem is now ripe with early stage venture capital, mentors and a sense on how to start and scale.
Global Categories Are Being Built From Africa
The best ideas come from anywhere and scale everywhere. Many of these best ideas have emerged in Africa. Mobile money was scaled successfully in Africa first by M-Pesa. Over 75% of the country’s GDP flows through M-Pesa and has single-handedly been responsible for banking the population. Where M-Pesa is nearly ubiquitous in Kenya, in many of its neighboring markets financial exclusion remains the norm.
Startups In Emerging Markets Are Real Businesses
Startups in emerging markets build camels instead of unicorns. That is to say, they build startups with real, reliable unit economics, and a strong foundation. As a result, they are better prepared to weather the downturn when times are tough.
Leading African Entrepreneurs Create Industries With Meaningful Impact
Jeff Harbach, the CEO of Kauffman Fellows, said as a remark that "after spending about two weeks in Kenya, he believes that the future of tech has a home in Africa.
(Adapted from a Forbes report of the Kauffman Fellow Summit held in Nairobi,Kenya, one of the world’s largest venture capital gatherings – and the first time it took place in Africa).
The best ideas come from anywhere and scale everywhere. Many of these best ideas have emerged in Africa. Mobile money was scaled successfully in Africa first by M-Pesa. Over 75% of the country’s GDP flows through M-Pesa and has single-handedly been responsible for banking the population. Where M-Pesa is nearly ubiquitous in Kenya, in many of its neighboring markets financial exclusion remains the norm.
Startups In Emerging Markets Are Real Businesses
Startups in emerging markets build camels instead of unicorns. That is to say, they build startups with real, reliable unit economics, and a strong foundation. As a result, they are better prepared to weather the downturn when times are tough.
Leading African Entrepreneurs Create Industries With Meaningful Impact
Jeff Harbach, the CEO of Kauffman Fellows, said as a remark that "after spending about two weeks in Kenya, he believes that the future of tech has a home in Africa.
(Adapted from a Forbes report of the Kauffman Fellow Summit held in Nairobi,Kenya, one of the world’s largest venture capital gatherings – and the first time it took place in Africa).
