Disruptive new entrants and emerging technology often make for fun headlines and interesting founder interviews. But the global investment community gets most excited by the blossoming tech hotspots where a steady stream of new entrants, fuelled by international capital, chase freshly crowned ‘unicorns’. These up-and-coming hotspots offer investors a vibrant environment with the promise of quick returns, contrasting with the often jaded and overcrowded hubs in more mature markets. Many in the global investment community are now looking at Africa as the future of fintech.
Several areas in Africa are making a name for themselves as fintech hubs. South Africa is significant because of the existence of an established banking environment, while Kenya continues to garner interest thanks to the M-Pesa mobile-based money transfer, payments and micro-financing service, launched in 2007 by Vodafone Group and Safaricom. Driven by new government rules easing the availability to apply for banking licences, Egypt has been surging ahead as a major source of fintech companies over the past year.
