Ask Nigeria Header Logo

Nigeria has largest share in fintech market

Photo of author

By Mercy Kelani

Africa’s giant has 32% market share and a total of 217 startups.

Recently, a report by Disrupt Africa revealed that the largest establishments of Fintechs on the African continent are in Nigeria. This report was titled “innovating for Africa”, and it stated that Nigeria, a West African country, has the largest market share of 32 percent in this sector, with 217 startups. However, this achievement is expected of Nigeria as it has laid a foundation for itself as a breeding ground for the sector. The country accommodates popular firms like Kuda, OPay, Moniepoint, Flutterwave, and PalmPay.

With Nigeria having the largest market share, South Africa ranks the second position, with 20.6 percent and 140 startups; Kenya ranks the third position with 15 percent and 102 startups; while Egypt ranks the fourth position with 9.6 percent and 65 startups. The remaining six countries that make up the list of the top 10 in Africa include Ghana, Uganda, Zambia, Senegal, Cameroon, and Rwanda. 67.7 percent of the market share is accounted for by countries-Nigeria, South Africa, and Kenya.

The country had a growth of 50.1 percent from 2021.

An addition of the market share of Ghana, Egypt, and Uganda with the top three African nations’ makes the joint stake equal 86.7 percent. Through this data, it has been deduced that the activity of Fintech has more concentration in major markets. The top three countries on the list got the largest funding, while experiencing the highest startup exits within the period of two years. The breakdown of the exits is as follows: South Africa, 31.3 percent; Kenya, 21.7 percent; and Nigeria, 20.9 percent, each having 36, 25, and 24 startups respectively.

However, the report added that Nigeria had witnessed massive growth within two years. Within the same period, the most populous country in Africa went ahead of South Africa and is now regarded as the market with the most Fintechs in Africa. The population of this sector in Nigeria has ensured maintenance of steady growth. In 2017, its number was at 74. In 2019, the number increased to 101. In 2021, it increased further to 144. This year, it has surged to 217. Which indicates a growth of 50.1 percent from 2021.

This sector is a performance field with a lot to prove & many investors.

Fintech has contributed greatly to the growth of the tech ecosystem, although the tech sector is made up of various subsectors like Healthtech, Cleantech, and Proptech. This sector is irresistible because it accommodates striving business enterprises that are interested in addressing a problem that is always present, which is financial inclusion. According to a report by the African Development Bank (AfDB), financial inclusion refers to “all initiatives that make formal financial services Available, Accessible and Affordable to all segments of the population.”

It is widely known that all enterprises in the sector offer solutions that they believe will be responsible for bridging the gap between underserved communities and essential banking services. As a result, this sector is regarded as a performance field with a lot to prove and many Investors. In the aspect of investment, the Economy of Nigeria might not have the best reputation at the moment but Fintechs in its market have been able to attract a massive and impressive volume of funding.

$1.5b, largest fund that has been raised by any country in Africa.

Additionally, the study by Disrupt Africa discovered that an estimate of $1.5 billion has been raised from 257 funding rounds since the past eight years in Nigeria. This amount is huge and the largest fund that has been raised by any country on the African continent. The report likewise added that the country’s funding for the past two years has reached $1 billion. The sector in Egypt also raised about $900 million within two years. Ghana also recorded an improvement as it raised more than $100 million.


Disclaimer

The content on AskNigeria.com is given for general information only and does not constitute a professional opinion, and users should seek their own legal/professional advice. There is data available online that lists details, facts and further information not listed in this post, please complete your own investigation into these matters and reach your own conclusion. Images included with this information are not real, they are AI generated and are used for decorative purposes only. Our images are not depicting actual events unless otherwise specified. AskNigeria.com accepts no responsibility for losses from any person acting or refraining from acting as a result of content contained in this website and/or other websites which may be linked to this website.