Events that shaped Africa’s fintech space in 2024

In the rapidly changing African fintech ecosystem, 2024 was filled with significant events. From new regulations to strategic partnerships, fintech is arguably the most successful category of startups, accounting for eight out of nine startups valued at over $1 billion in the region.

The number of fintech companies in Africa grew from 1,049 in 2022 to 1,263 in 2024, showcasing robust entrepreneurial activity despite global economic uncertainties, according to the Finance in Africa report.

According to Boston Consulting Group, the fintech industry is expanding rapidly, with the global market expected to reach a value of $1.5 trillion by 2025, driven by an annual revenue growth rate of 32 percent in Africa.

“This growth is primarily fuelled by innovations in AI, digital payments, and customer-centric business models,” it said.

Here are events that shaped Africa’s fintech space in 2024

Two African fintech unicorns emerged

South Africa’s TymeBank and Nigeria’s Moniepoint raised funds in recent weeks at valuations of over $1 billion and joined the coveted unicorn status.

But those valuations don’t just reflect investor confidence. They signal the success they have had in taking disruptive fintech models originally developed for mature economies and scaling by tailoring them to work in a region where nearly half the population remains unbanked.

Both companies aim to simplify banking for individuals and businesses in two of Africa’s largest economies.

TymeBank began by offering retail customers low-cost bank accounts and savings products before expanding into business banking, providing working capital to small businesses in South Africa.

Meanwhile, Moniepoint started out in Nigeria supporting small businesses with accounts, payments, loans, and expense tools and has recently expanded into retail banking. Notably, both fintechs are taking a hybrid approach to banking, blending the convenience of digital banking with real-world, physical touchpoints.

Nigeria’s largest banks are embracing Zone’s blockchain technology

Three of the country’s largest banks—Zenith Bank, First Bank, and United Bank of Africa—have joined fintechs on Zone, Africa’s first regulated blockchain network for payments. This development, announced on July 10, 2024, is perhaps the first time traditional financial institutions in Nigeria are displaying interest in blockchain technology.

The adoption of blockchain by these banking giants reflects a growing global trend, as financial institutions worldwide seek to harness the technology’s potential.

UNDP $1bn fintech innovation centre in Lagos to support African startups

The United Nations Development Programme (UNDP) has launched Africa’s premier innovation centre and Timbuktoo fintech hub in Lagos-Nigeria aimed to provide an inclusive financial support innovation ecosystem.

According to a statement from UNDP Africa, it aims to engage a large number of private and public sector partners to establish it is expected that eight Timbuktoo hubs will be established across Africa’s leading startup ecosystems (Accra, Nairobi, Cape Town, Lagos, Dakar, Kigali, Casablanca, and Cairo, among others) and will start operations in 2023.

The organisers say each hub will focus on a different priority sector that cuts across Fintech, Agritech, Healthtech, Greentech, Creatives, Tradetech and Logistics, Smart Cities and Mobility, and Tourismtech, and each housing a Venture Builder and a Venture Fund.

The structure of the undertaking includes a parent fund of catalytic grant capital, in partnership with impact-minded catalytic partners, that would finance the network of Hubs and HeadQuarters. The Parent Fund would also inject a minority share in each of the Hub Venture Funds, which are commercially oriented, in the form of guarantees or first-loss capital, the statement said.

African fintech raise $600m

According to Africa: The Big Deal, the fintech sector attracted the highest funding in the nine months of the year, totalling $600 million.

It said, “Fintech remains in the lead ($600 million, 43 percent), followed by Energy ($300 million, 21 percent), though combined they ‘only’ represent 64 percent of all the funding invested in start-ups on the continent.

“Logistics & transport comes third, driven by the Moove ($110 million) and Spiro ($50 million) deals of the first half of the year while Agric and food came fourth with $82 million.”