African Fintech Expected to Grow to $3 Billion by 2020, Led by Nigeria, Kenya, and S.A.
According to recent report by (ICAEW) ;the Institute of Chartered Accountants in England and Wales (ICAEW) has revealed in its statement that from almost $200m in 2018 to $3billion by 2020, the FinTech sector is set to show strong growth over the medium term with the majority of these investments channelled towards Nigeri, Kenya and South Africa.
The success in FinTech in these countries as expected will expand to other African countries. Almost one-third of total funding on the continent was raised by FinTech start-ups in 2017 , this information is supported by an Ecobank study. This is not a surprise anyway as Sub Sahara Africa can boast with the possession of nearly 60% of all mobile money accounts globally.
For instance in Kenya, 64 out of 100 inhabitants had access to mobile money transfer services and used it to during Q3 2018.
Looking at other African countries, mobile money transfer stand as follows:
• Rwanda – 1, 250 mobile money accounts per 1, 000 adults
• Ivory Coast – 1, 700 mobile money accounts per 1, 000 adults
• Uganda– 1, 000 mobile money accounts per 1, 000 adults
• Ghana – 1, 350 mobile money accounts per 1, 000 adults
The value of mobile money transactions in African countries have also taken a dramatic increase as shown below:
• Uganda – 62% of GDP
• Ghana –76% of GDP
• Kenya – 47% of GDP
• Burkina faso – 52% of GDP
According to the report from ICAEW;
“FinTech is Facilitating innovation in other sectors of the economy and also allowing African nations to have more traditional infrastructural advancement. FinTech is really emerging as a technological enabler in the regions.”
Credits; Techeconomy, Af News.JOIN OUR COMMUNITY