FinTech is positioning itself as the next growth lever for private equity. In the first 9 months of 2021, African companies in the sector have already broken the record for resource mobilization of the past 10 years.
The sector of African companies specializing in technology solutions associated with financial services (fintech) has already mobilized more than $ 1.44 billion since the start of this year 2021, the Ecofin Agency noted from a set of data. collected. This figure does not take into account 23 transactions announced over the period, but the value of which has not been made public.
This amount is greater than the total funding announced for the benefit of African fintechs over the decade from 2011 to 2020 ($ 1.06 billion) In total, at least 196 investors took part in 71 transactions registered until September 9, 2021.
This value was drawn by the $ 500 million from the Singaporean sovereign wealth fund Temasek for the benefit of the investment firm Leapfrog which should use part of these resources to invest in the region’s fintechs. The other transactions that have supported the dynamism of the sector are that of the firm Wave, active in Senegal and Côte d’Ivoire, which has mobilized $ 200 million and that of the Nigerian OPay, which has raised $ 400 million.
In a region where inclusion in traditional financial services (banking and microfinance) has not been able to capture most of the available markets through a physical presence, fintechs have been a growth driver, either as part of a partnership or more autonomous solutions.
The coronavirus pandemic has also alerted to the urgent need to digitize payment solutions on the continent, especially in large economies in the region such as Nigeria, Kenya, South Africa, Egypt, and the Coast. ivory. The fintech sector, especially those that offer payment solutions, is however challenged by the Mobile Money service, supported by an already existing regulation, and solid capital from mobile phone companies like MTN, Orange, Safaricom (Kenya). , Airtel Africa, or even banks that have launched their own financial transaction solutions via mobile.
The digital payments market in Africa remains important and is experiencing solid growth. In the UEMOA zone, which brings together the 8 countries that have the FCFA in common, the value of mobile transactions rose from 7,415 billion FCFA in 2019, to 28,738 billion FCFA at the end of 2019, according to data from the Central bank of this sub-region.