List of the FinTech Companies in Africa
The rapid progress in technology has opened up new possibilities across the globe; FinTech is among one of the most interesting sectors to explore as Africa’s tech scene grows at a rapid pace.
According to Wikipedia, with more than 500 million mobile phone subscribers, it is estimated that only half of them are active on social media, with a mere 3% being connected to the internet. This implies a wide opportunity to explore Africa, especially with emerging technologies like mobile apps, cloud computing, and the internet of things.
Sector Overview
In 2011, Financial Inclusion indexes revealed a severe under-banking rate across Sub-Saharan Africa of 36%, one of the leading payment gateways based in Africa. Based on a report from Mastercard, the under-banked rates have risen to 63% between 2015 and 2018 which points out an increase of over 22 million people who have been integrated into the financial payments ecosystem as a result of various governmental interventions.
The study shows the presence of close to 1,000 financial institutions in Sub-Saharan Africa spread across 27 countries. Financial services have been the major regional revenue earner for many African governments as the sector contributes to 30% of the total tax revenues of various economies!
As FinTech remains one of the top investment areas in emerging markets, the momentum in Africa is expected to pick up with the launch of various ecosystems and platforms to promote innovation and growth in the continent.
According to a survey conducted by Omidyar Network, financial services are mostly concentrated in urban areas, including major cities with limited access across rural communities, which pointed out that only 4% of adults own bank accounts.
The survey also shows that mobile money services are the most used financial platforms in Africa, and 34% of adults rely on them compared to only 14% using bank accounts. It is important to note that there has been an increase in the number of contactless payments made across Sub-Saharan Africa with the launch of various payment systems like EkoPay (Ghana), Airtel Money (South Africa), and M-Pesa (Kenya).
FinTech Companies in Africa
Celpay
Based in Kenya, Celpay is a FinTech licensed electronic money institution by the Central Bank of Kenya that offers online payment solutions to consumers and businesses. The company uses mobile payments to help merchants accept electronic payments at lower costs with reduced fraud risks compared to traditional transactions. Celpay provides affordable internet-based solutions for cashless payments across the retail sector, working with several leading mobile money platforms in the country.
Cheki
Headquartered in Nairobi, Cheki is a financial services platform that provides remittance and payment solutions for Africans living worldwide. The company issues virtual visa cards that allow users to access cash from their bank accounts safely at ATMs. Cheki has also developed a mobile app to allow users to get mobile alerts through push notifications for the balance of their cards and transactions done across ATM terminals. The company works with various banks in Kenya, including FNB.
Finserve
Finserve is a licensed financial institution in Nigeria focused on providing a range of financial services such as loans, insurance, and investments. The company has been listed among the top FinTech start-ups in Africa by Disrupt Africa. It is mentioned to have one of the largest e-commerce platforms in West Africa.
Moreover, Finserve is actively involved in promoting technology innovation in the country. In 2017, the company launched a mobile chatbot that allows FinTech service providers in Nigeria to engage with customers over various messaging platforms (Facebook Messenger, Google Chat). The bot has been in use by over 200 companies and processed close to $900,000 worth of transactions on Facebook Messenger.
Netscribes
Netscribes is an e-payment company that has developed a platform to deliver payments across mobile money services such as M-Pesa in Kenya and Airtel Money in Nigeria. The company uses modern technology to bring banking facilities into the reach of every individual, especially for those who cannot afford expensive bank accounts. Netscribes offers financial services to small and medium scale businesses (SMEs), with flexible support for start-ups. The firm has over 1,500 clients across the continent, covering Sierra Leone, Uganda, Senegal, Nigeria, Ghana, and South Africa.
Albeit
Based in Nairobi, Albeit provides digital trading solutions to financiers in Africa. The company has developed a digital platform to connect investors with FinTech start-ups and developers on the continent for business cooperation. African entrepreneurs can use the platform to raise funds from local and international investors for their projects and gain access to an incubator program that will help them build, manage and scale technology businesses across the continent.
Albeit has a mobile payment application that allows users to send and receive payments from other Africans across the globe, without bank accounts. However, the app is only available in Kenya, Tanzania, and Nigeria.
Zoona Payments Platform
Founded in Nairobi by nonprofit organization Tala project, Zoona is a mobile platform that provides affordable financial services to FinTech entrepreneurs and mobile money service providers on the continent. The company has built a payment network that allows its members to transact business through mobile wallets, bank accounts, and e-pos terminals while enjoying lower transaction rates. Zoona also supports the creation of local currencies in member countries which has been taken advantage of by the Republic of Sierra Leone.
Zoona is available in 16 countries across Africa and has more than 300,000 users on its platform. The company recently released a mobile app for money transfers that allows users to send cash through their mobile phones at affordable costs. According to Forbes Magazine, Zoona recently received a $9 million investment from Silicon Valley-based mobile payments company Jack Henry & Associates indicative of its growth potential.
Conclusion:
These are some of the top African FinTech start-ups that are making waves in the continent. Start-ups such as Iroko, Finserve, and Netscribes offer digital financial services to millions daily, while others focus more on providing financial support to entrepreneurs building technology companies across Africa. The future is bright for this sector, especially with the effort of governments in Africa in providing affordable financial services to increase the percentage of banked populations on the continent.
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