Close Menu
TechCentralTechCentral

    Subscribe to the newsletter

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Facebook X (Twitter) YouTube LinkedIn
    WhatsApp Facebook X (Twitter) LinkedIn YouTube
    TechCentralTechCentral
    • News

      World Bank set to back South Africa’s big energy grid roll-out

      20 June 2025

      The algorithm will sing now: why musicians should be worried about AI

      20 June 2025

      Sita hits back at critics, promises faster, automated procurement

      20 June 2025

      The transatlantic race to create the first television

      20 June 2025

      Listed: All the MVNOs in South Africa – 2025 edition

      19 June 2025
    • World

      Watch | Starship rocket explodes in setback to Musk’s Mars mission

      19 June 2025

      Trump Mobile dials into politics, profit and patriarchy

      17 June 2025

      Samsung plots health data hub to link users and doctors in real time

      17 June 2025

      Beijing’s chip champions blacklisted by Taiwan

      16 June 2025

      China is behind in AI chips – but for how much longer?

      13 June 2025
    • In-depth

      Meta bets $72-billion on AI – and investors love it

      17 June 2025

      MultiChoice may unbundle SuperSport from DStv

      12 June 2025

      Grok promised bias-free chat. Then came the edits

      2 June 2025

      Digital fortress: We go inside JB5, Teraco’s giant new AI-ready data centre

      30 May 2025

      Sam Altman and Jony Ive’s big bet to out-Apple Apple

      22 May 2025
    • TCS

      TCS+ | AfriGIS’s Helen Hulett on how tech can help resolve South Africa’s water crisis

      18 June 2025

      TechCentral Nexus S0E2: South Africa’s digital battlefield

      16 June 2025

      TechCentral Nexus S0E1: Starlink, BEE and a new leader at Vodacom

      8 June 2025

      TCS+ | The future of mobile money, with MTN’s Kagiso Mothibi

      6 June 2025

      TCS+ | AI is more than hype: Workday execs unpack real human impact

      4 June 2025
    • Opinion

      South Africa pioneered drone laws a decade ago – now it must catch up

      17 June 2025

      AI and the future of ICT distribution

      16 June 2025

      Singapore soared – why can’t we? Lessons South Africa refuses to learn

      13 June 2025

      Beyond the box: why IT distribution depends on real partnerships

      2 June 2025

      South Africa’s next crisis? Being offline in an AI-driven world

      2 June 2025
    • Company Hubs
      • Africa Data Centres
      • AfriGIS
      • Altron Digital Business
      • Altron Document Solutions
      • Altron Group
      • Arctic Wolf
      • AvertITD
      • Braintree
      • CallMiner
      • CYBER1 Solutions
      • Digicloud Africa
      • Digimune
      • Domains.co.za
      • ESET
      • Euphoria Telecom
      • Incredible Business
      • iONLINE
      • Iris Network Systems
      • LSD Open
      • NEC XON
      • Network Platforms
      • Next DLP
      • Ovations
      • Paracon
      • Paratus
      • Q-KON
      • SevenC
      • SkyWire
      • Solid8 Technologies
      • Telit Cinterion
      • Tenable
      • Vertiv
      • Videri Digital
      • Wipro
      • Workday
    • Sections
      • AI and machine learning
      • Banking
      • Broadcasting and Media
      • Cloud services
      • Contact centres and CX
      • Cryptocurrencies
      • Education and skills
      • Electronics and hardware
      • Energy and sustainability
      • Enterprise software
      • Fintech
      • Information security
      • Internet and connectivity
      • Internet of Things
      • Investment
      • IT services
      • Lifestyle
      • Motoring
      • Public sector
      • Retail and e-commerce
      • Science
      • SMEs and start-ups
      • Social media
      • Talent and leadership
      • Telecoms
    • Events
    • Advertise
    TechCentralTechCentral
    Home » News » African fintech start-up scene thriving, but crypto in decline

    African fintech start-up scene thriving, but crypto in decline

    The African fintech start-up ecosystem saw $2.7-billion in investment in the past 24 months, researchers have found.
    By Staff Reporter21 August 2023
    Twitter LinkedIn Facebook WhatsApp Email Telegram Copy Link
    News Alerts
    WhatsApp

    African fintech start-up scene thriving, but crypto in declineAfrica’s fintech start-up ecosystem grew in size by almost 20% and saw US$2.7-billion (about R51-billion) in investment flood in over the last 24 months, according to a new report released by Disrupt Africa.

    Every two years since June 2017, Disrupt Africa has released the Finnovating for Africa publication, which tracks the extraordinary development of the fintech ecosystem across Africa in recent years.

    It reveals that the fintech ecosystem is the most-populated vertical within Africa’s wider tech ecosystem, having maintained its steady growth over the last two years. Since the last edition of Finnovating for Africa in 2021, the number of start-ups operating in this space has grown by 17.7% to 678.

    The number of active fintech-focused blockchain start-ups in Africa declined once again

    This growth is taking place across the continent, with all major markets bar South Africa posting an increase in the number of active ventures. Egypt and Nigeria are growing especially fast, with the number of fintech companies based in those countries leaping by 66.7% and 50%, respectively, in just 24 months.

    Meanwhile, not only are African fintech start-ups more likely to raise funding than their peers, they are also more likely to be acquired. Disrupt Africa tracked 26 fintech start-up acquisitions between June 2021 and July 2023, compared to just seven between 2019 and 2021, and accounting for over 60% of the 43 such deals reported since 2011. This should serve to embolden both investors and entrepreneurs in the sector, as exits are the name of the game.

    African fintech

    Among the earliest segments to emerge in African fintech, the payments and remittances space was once again the most populated in 2023. Indeed, almost half (48.7%) of the fintechs tracked are active either in the payments or lending verticals.

    The difficulties inhibiting payments on the continent, as well as moving money around the continent, means entrepreneurs are always eager to provide new solutions to plug the gaps left by incumbents in the financial services sector.

    Read: Visa to fund fintech start-ups in Africa

    Fifty-nine (29.6%) of these payments start-ups are based in Nigeria, up from 48 (23.3%) in 2021. South Africa has 35 start-ups, representing 17.6%. Kenya (27; 13.6%) and Egypt (26; 13.1%) are the other leading markets. This is unsurprising given the volume of ventures in those markets, but generally speaking, the more advanced an ecosystem, the smaller percentage of its start-ups are active in this sector.

    The number of active fintech-focused blockchain start-ups in Africa declined once again between 2021 and 2023, as the excitement over cryptocurrencies continued to fade.

    Linked to the positive sentiment around bitcoin and other cryptocurrencies, as well as things like smart contracts, the number of blockchain start-ups active in Africa leapt 150% to 45 between 2017 and 2019. But since then, as volatility became evident and the crypto world became more fragmented, the sector in Africa has begun to decline.  – © 2023 NewsCentral Media

    Get TechCentral’s free daily newsletter



    Disrupt Africa Finnovating for Africa
    Subscribe to TechCentral Subscribe to TechCentral
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email Copy Link
    Previous ArticleRoomKing takes aim at SA’s backroom rental market
    Next Article South Africa is at serious risk of catastrophic internet disruption

    Related Posts

    2023 was a horrid year for African tech start-up funding

    29 January 2024

    Africa tech start-ups raised R1,7bn in 2016

    18 January 2017

    African tech start-ups raised billions in 2015

    12 January 2016
    Company News

    Making IT happen: how Trade Link gears up to enable SA retail strategies

    20 June 2025

    Why parents choose CambriLearn for online education

    19 June 2025

    Disrupt first, ask questions later – the uncomfortable truth about incident response

    18 June 2025
    Opinion

    South Africa pioneered drone laws a decade ago – now it must catch up

    17 June 2025

    AI and the future of ICT distribution

    16 June 2025

    Singapore soared – why can’t we? Lessons South Africa refuses to learn

    13 June 2025

    Subscribe to Updates

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    © 2009 - 2025 NewsCentral Media

    Type above and press Enter to search. Press Esc to cancel.