The growth potential in Africa’s FinTechs can unlock greater economic prosperity
Almost half of the 1,000 FinTechs in Africa were founded in the past six years. Cumulatively, they have raised about $6 billion in equity financing since 2000. This is an exciting, fast-growing sector with plenty of potential to grow further.
In a new report, “Unlocking the FinTech potential in Africa,” Boston Consulting Group, in association with Elevandi, explore the benefits that FinTech has brought to Africa. The report examines the business models that FinTechs and investors need to create to scale up their activities.
FinTechs and investors face several hurdles, including high costs and different regulations in each jurisdiction. Five areas in particular require attention: digital infrastructure, policy harmonisation, policy clarity, developing local capital markets and growing the local talent pool.
If policymakers can foster the right environment for FinTechs to grow and financial inclusion to expand, it will ultimately translate into taxes and economic growth.
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