A new report by McKinsey Co says that 90 percent of all transactions in Africa are still cash-based.
This limitation to FinTech growth is also hindered by another two-thirds of Africa’s 1.3 billion population who don’t have a bank account.
The report predicted that Africa’s FinTech revenue could reach $30.3 billion by 2025.
This figure, fuelled by increased internet penetration will be eight times higher than in 2020, the report said.
“African fintech is emerging as a hotbed for investment, with average deal sizes growing and the proportion of fintech funding in Africa increasing over the past year, bringing jobs and growth to African economies. And the story is only just beginning, ”it said.
The report identified Ghana, Egypt, and Nigeria as some of the countries to experience the fastest growth.
“The anticipated increase is part of a rapid expansion in financial services income that’s expected to grow to $230 billion from $150 billion over the same period,” a report by ‘Thisdaylive’ said.
