Written by Elevandi's Rafat Kapadia, Head of Investments, and Khyati Chauhan, Research & Advisory
September 2024
In the first half of 2024, investments in the fintech sector in Africa declined significantly, dropping 77% to US$186 million from US$826 million in 1H 2023. The number of deals decreased 30% year-on-year and average deal size fell to US$4 million in 1H 2024 from US$10.5 million in 1H 2023.
Quarterly, capital invested in Africa's fintech sector fell to US$82 million in Q2 2024, from US$339 million in Q2 2023. The number of deals fell to 58 in Q2 2024 across Africa, from 71 in Q2 2023. Nigeria, Cote d'Ivoire, and South Africa remained the primary recipients of FinTech funding, with their combined contribution of 76% in Q2 2024.
East Africa's FinTech sector grew in Q2 2024, with total investment increasing two-fold to US$16.5 million compared to the same quarter in 2023, led by Zambia and Seychelles, the same as in Q2 2023. Innovation labs in East Africa, such as the private hubs, Nakuru Box and Adanian Labs Africa, have provided crucial support for entrepreneurs and startups. These labs and other hubs provide mentorship, business opportunities, and
platforms for startups to thrive, addressing the skills gap in the region through capacity-building programs. For instance, Adanian Labs has partnered with the Artificial Intelligence Centre for Excellence and the Africa Blockchain Centre in June 2024 to train 3,000 Web3 developers to enhance capacity across the continent.
Overall, while FinTech in Africa faced significant funding challenges in the first half of 2024, resilience in deal activity and East Africa indicates potential areas of growth and innovation.
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