Nigeria leads Africa in FinTech deal share with 23.5% in Q3’23

Business a.m

A recent report by FinTech Global has shown that despite a decline in FinTech activities across Africa in the third quarter of 2023, Nigeria remained the most active FinTech country on the continent, accounting  for 23.5 per cent of all deals in the continent, with a total of 12 deals completed in Q3 2023.

The world’s leading provider of FinTech information services, further noted that South Africa and Kenya were the second and third most active FinTech countries in Africa during the third quarter of 2023. South Africa had 11 deals, accounting for 21.6 per cent of the total, while Kenya had 10 deals, accounting for 19.6 per cent.

While the number of deals across Africa has declined, the report shows that activity remains strong in the region’s leading FinTech countries.

While the report noted a 28 per cent year-on-year decrease in FinTech deals in Africa during the third quarter of 2023, it also emphasised that this decline is largely due to the global economic downturn and investor caution. Despite these headwinds, the report found that investors continue to be interested in FinTech companies with innovative business models and strong growth potential. It noted further that the 51 deals that took place in Africa during the period are a testament to the resilience of the continent’s FinTech sector.

It is worth noting that the global FinTech sector experienced an even greater decline in deals than Africa in Q3 2023, with a 48 per cent drop in deal activity. Furthermore, the report found that the total funding for African FinTech companies in Q3 2023 amounted to $38 million, representing an 89 per cent decrease from the levels seen in Q3 2022.

During Q3 2023, Lupiya, a startup that offers a marketplace for micro-loans, raised $8.3 million in its Series A funding round, led by Alitheia IDF. This was the largest FinTech deal in Africa during the period and the only FinTech deal in Zambia. Lupiya plans to use the funding to accelerate its growth and expand its services to reach more unbanked and underbanked people in the region.