Africa’s fintech company revenue may soar to US$30.3 billion by 2025, eight times higher than in 2020, as a growing, young and underbanked population gets more access to the Internet, reports McKinsey & Co.
The anticipated increase is part of a rapid expansion in financial services income that’s expected to grow to US$230 billion from US$150 billion over the same period, the consulting company said in a research report published this week.
About two-thirds of Africa’s 1.3 billion people don’t have a bank account or full access to financial services, and 90% of all transactions on the continent are still cash-based, according to the report. That creates a growth opportunity for fintech companies.
“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,” McKinsey said. “And the story is only just beginning.”
Financial services revenues in Ghana and francophone West Africa will enjoy the fastest growth, with Nigeria and Egypt the next quickest, it said.