News Details

Africa's fintech sector is booming

ADD™

Mar 12, 2025

Africa's fintech sector is booming, driven by high mobile phone usage and a large unbanked population.

This growth is projected to reach $230 billion by 2025 (excluding South Africa). Key areas include mobile money, payment solutions, lending, and "Buy Now, Pay Later" services. Overall, Africa presents a complex investment landscape.

While FDI can be volatile, sectors like fintech, renewable energy, and agribusiness show promise. Challenges such as KYC/KYB compliance remain.

The African Continental Free Trade Area (AfCFTA) is expected to boost intra-African trade. Platforms like ADD™ are emerging to facilitate secure business interactions by providing tiered verification services to build trust.


Despite global economic uncertainties impacting FDI, Africa's investment prospects remain strong in 2023/2024. A large, youthful population of 1.4 billion, coupled with a rapidly expanding fintech industry that secured over $2 billion in funding in 2023, creates a fertile ground for investment. The AfCFTA's potential to increase intra-African trade by 33% by 2035 further enhances market opportunities. Investors are increasingly focusing on high-growth sectors like renewable energy, agribusiness, and digital infrastructure. While challenges such as due diligence, compliance, and youth empowerment exist, Africa's abundant resources and growing markets offer significant rewards.

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