Outsize valuations and choppy market conditions have caused investors to become more cautious when backing fintech startups. Several countries, including the US, have seen a significant drop in deal activity. But Africa's burgeoning fintech market is bucking the trend. So far this year, the sector has seen $1.3 billion invested across 151 deals, according to PitchBook data. By comparison, $1.6 billion was invested across 190 deals in 2021.
"An increase in smartphone ownership, cheaper and more accessible internet services, and a predominantly young and urbanizing population have helped African fintech grow rapidly."