Africa’s fintech sector was undoubtedly one of the biggest stories of 2021. Investment into the African tech startup ecosystem trebled over the course of a record-breaking 2021 that saw total funding pass the US$2 billion mark for the first time. This is according to the seventh edition of the annual African Tech Startups Funding Report. This amount was double the previous year’s investment, and nine times what was raised five years ago, an indication of how much the industry has grown in recent years.
And as we enter 2022, the sector is showing no signs of slowing down. The attractive valuations of African Fintechs are proving to be a major drawcard for foreign investors. Especially because startups in more mature markets tend to have far more expensive valuations. In the latest investment news, fund Norrsken22 announced it is looking to invest in new African Fintechs in funding that is estimated to be worth over R3 billion.