Nigeria dominates the “Big Three” markets – Fintech Bitcoin News

According to the results of the current study by Disrupt Africa, the number of fintech start-ups based on the African continent rose to 576 in 2021. This corresponds to an increase of 17.3% compared to the 491 start-ups that were active on the continent in 2019. Overall, the number of fintech start-ups in Africa rose by around 90% compared to 301 in 2017.

Nigerian dominance

At the forefront of this sustained African fintech growth is the West Africa region, where “Nigerian numbers rose by 42.6 percent compared to 2019”. In Ghana, fintech companies grew by 25% over the same period, while the number in Ivory Coast grew by 100%.

However, as the results of the study show, three countries – Nigeria, South Africa and Kenya – completely dominate the continent’s fintech startup space. The results show, for example, that of all fintech start-ups observed between 2019 and 2021, 391 were based in these three countries. Of these 391 start-ups, 154 are based in South Africa, while Nigeria is just behind with 144. With 93 fintech start-ups, Kenya is a long way off in third place.

Covid-19 induced resurgence

Meanwhile, research suggests that this resurgence in fintech growth in the “big three” markets may be related to the restrictions related to Covid-19. For example, the data shows that after the slight decrease in 2019, the proportion of payments and remittances from fintech startups has increased in these three countries.

South African payment and remittance start-ups grew 27.3%, seven percentage points higher than the 2019 growth rate. In Kenya, the number of fintech start-ups increased by 21.5% compared to a growth of 15.4% in 2019. By contrast, in Nigeria, which has consistently outperformed both South Africa and Kenya since 2017, the number of payments and remittances related to fintech startups grew by 33.3%. This is only slightly higher than the 2019 growth rate of 32.7%.

In terms of the funds raised, the study results show that Nigerian fintech startups have dominated since 2015. The study report explains:

Of the 277 fintech funding rounds that Disrupt Africa tracked between 2015 and mid-2021, 108 of those rounds went to Nigerian startups with a total investment of $ 467,901,000, or 53.4 percent of the funds raised since the chase began. This is a far higher total in dollars than any other country in Africa.

Meanwhile, South Africa, Nigeria’s closest competitor, raised a total of $ 216,124,800 over the same period. However, that number is only slightly higher than the total amount of Nigerian funding in 2021, which is $ 208,225,000.

Fintech failures

The Disrupt Africa Report not only recorded start-ups, but also the number of fintech failures. To explain these startup errors, the report reads:

As mentioned earlier, 109 of the fintech companies featured in the 2019 edition of this report have closed their doors since then. That was 22.2 percent of the 2019 total. Closures in and of themselves aren’t positive things, of course, but the countries and industries in which most of these “failures” have occurred suggest a market that is self-correcting.

Interestingly, the study “Disrupt Africa” found that more fintech start-ups are now active in more than one category. As the results show, the continent had 143 multi-category fintechs in 2021, up from 73 in 2019. Leading this category is Nigeria with 39, followed by South Africa with 31, while Kenya is not far behind with 30.

What do you think of the results of this study? Let us know what you think in the comments section below.

Photo credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer of liability: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement for any product, service, or company. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author are directly or indirectly responsible for any damage or loss caused or allegedly caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

source https://bidsfor.me/nigeria-dominates-the-big-three-markets-fintech-bitcoin-news/