African fintech deals plunge as fintech firms raise $189m in Q2 2023

By Onome Amuge.

African fintech companies raised a total of $189 million in the second quarter of 2023, but this was a 64 per cent decline from the same period in 2022, as fintech deal activity in the second most populated continent reached 59 transactions in the second quarter, a 31 per cent year-on-year drop.

This is according to a recent report by Fintech Global, which showed that despite the plunge, Nigeria emerged as the most active  fintech country in Africa with 25 deals, a 42 per cent share of deals in the continent. Kenya was the second most active with 13 deals, a 22 per cent share of total deals and South Africa was third with seven deals in the reviewed period.

The world’s leading provider of fintech information service, further noted Africa’s general deal activity for all sectors reached 306 deals in Q2 2023, down 34 per cent from Q2 2022, an  indication that fintech has been slightly more resilient compared to other sectors.

Meanwhile, TymeBank, a digital retail bank based in South Africa, had the largest fintech  deal in Africa during Q2 2023, after raising $77.8 million in their latest pre-Series C round, led by Tencent.

PayTech was ranked  the most active fintech sub sector in Africa during Q2 2023 with 16 deals, representinga 27 per cent share of deals.

Fintech Global noted that African total transaction value in the payments technology market is projected to reach $146 billion in 2023.

The report also stated that African total transaction value is expected to show an annual growth rate (CAGR 2023-2027) of 16 per cent resulting in a projected total amount of $265 billion by 2027.