New data has shown that African fintech startups raised $1.45 billion in 2022. However, the sector’s share of the continent’s total private funding has dropped.
The data indicates that the fintech sector’s share of the total private funding in Africa has dropped from 23% in 2021 to 14% in 2022. This drop is attributed to an increase in funding for other sectors such as manufacturing and transportation.
The data also indicates that South Africa and Nigeria were the most attractive for investments in this sector, having together raised about 60% of the total funding for fintech startups in Africa.
This drop highlights the importance of diversifying funding sources for startups in Africa, and the need to develop investment in various sectors to achieve sustainable development in the region.