By Christiana Akinola(Siwes student, Polytechnic Iresi).
Nigerian fintech startups secured $243 million in the past year, marking the lowest among the ‘Big Four’ African nations, as outlined by Afridigest.
Despite the 16% decline in funding for Nigeria in 2023, notable startups like Moove and Lemfi still managed to raise substantial amounts.
In comparison, Egypt, South Africa, Kenya, and Nigeria garnered $541 million, $367 million, $301 million, and $243 million, respectively, in fintech funding.
Interestingly, Nigeria boasted the highest number of fintech deals reported in a single year, totaling 60, followed by South Africa (25), Kenya (23), and Egypt (17).
The collective efforts of 150 African fintech startups resulted in a significant total funding of $1.55 billion.
Although there was a 24% dip in overall fundraising, equity financing for African fintech companies experienced a notable 43% decline compared to the previous year.
In contrast, debt financing demonstrated a 34% growth, reaching $647 million.
Focusing on specific sectors, Banking/Lending, Payments/Cards, and Financial Management attracted the lion’s share of fintech funding.
The surge in debt financing signals a shift in investor behavior, with a growing emphasis on selectivity and caution amidst economic volatility and inflation.
