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African Financial Technology Sector Flourishes

By Irene Gaitirira
Published July 27, 2018

Financial transactions made via the internet or a mobile phone are expected to grow from the current US$200m to US$3 billion by 2020.US$100 million of fundraising has been injected into Africa’s bourgeoning financial technology (fintech) and mobile payments sector in 2018.

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Quoting a financial institution known as Ecobank, TMT Finance, a telecom, media and tech news and events company, that estimates that financial transactions made via the internet or a mobile phone are expected to grow from the current US$200m to US$3 billion by 2020, says a significant amount of capital remains to be injected into the sector in 2018.

About US$100 million of fundraising has been injected into Africa’s bourgeoning financial technology (fintech) and mobile payments sector in 2018.“The increasing demand for payment transaction and lending services are attracting investment from mobile operators, banks and international funds, all jostling to position themselves across the continent. These new initiatives also achieve inclusive goals set by international development finance institutions, which have been joining multiple fundraisings over the last twelve months,” says Joseph d’Arrast, TMT Finance’s Editor in charge of Europe, Middle East and Africa (EMEA).

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Joseph d’Arrast, TMT Finance's Editor in charge of Europe, Middle East and Africa (EMEA), says increasing demand for payment transaction and lending services are attracting investment from mobile operators, banks and international funds, all jostling to position themselves across Africa.According to d’Arrast, regulation, access to reliable and affordable internet and the development of blockchain are all key topics affecting Africa’s Fintech sector.

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