Fintech bright spot as Africa catches up in bumper funding year

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Companies in Africa close gap on Indian and Latin American firms

Fintech companies in Africa raised more capital despite the Covid-19 pandemic, in contrast to their emerging-market peers such as Latin America, which saw a decline.

Africa’s growing population of 1.2-billion people, rising smartphone ownership and a drop in internet costs are among the factors contributing to the region’s allure. Investors also see opportunity among its large unbanked population of 350-million, which accounts for 17% of the global total. Nigeria has especially benefited from the financial-technology boom that has put much of Africa at the cutting edge of the revolution in mobile money. In 2020 Stripe paid $200m to acquire Nigerian start-up Paystack.

 

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