FinTech companies in Africa have raised $354.7m in the first nine months of the year, across 50 transactions, with 77.8% of this capital invested in Q3 2019, and six of the largest transactions in 2019 occurring last quarter.
EY has identified Sub Saharan Africa as a region of opportunity for FinTech investments due to its unique economic and demographic environment. The region is characterized by less-developed financial infrastructure, and an unbanked population of about 60%. By ensuring access to financial services to this population, FinTechs have the potential to profoundly change the financial services landscape and play a pivotal role in improving financial inclusion.
More than $335m was raised in the ten largest FinTech deals in Africa during the first three quarters of 2019, with four Payments & Remittances deals (Kudi, Fawry, OPay, Jumia) and four Marketplace Lending deals (Lulalend, Mettle.net, Africa Finance Corporation) listed.
AFRICA Finance Corporation (AFC) founded in 2007, provides project and development finance in Africa and received the largest FinTech deal in Africa this year. AFC secured a $150 million loan from Japanese investors MUFG Bank and Sumitomo Mitsui Banking Corporation in September, to fund general corporate activities across the continent.
Lagos-based Jumia group, a Pan-African E-Commerce platform, raised $56m from Mastercard before its IPO on the NYSE on 12th April 2019. The company which is backed by venture builder Rocket Internet had over 700m visitors to its platform last year and is currently the only tech unicorn in Africa. This funding from Mastercard was the second largest FinTech deal in Africa during the first three quarters of 2019.
