FinTechs in

Sub-Saharan Africa
An overview of market
developments and
investment opportunities
Contents
Executive summary: A landscape
of opportunities 1

An attractive market for FinTechs 2

What are FinTechs? 3

FinTech landscape 4

Regional FinTech hubs 6

The FinTech ecosystem 8

The Ecosystem of the main hubs 9

International FinTechs in SSA 10

Investing in SSA FinTechs: the challenges 12

Understanding investor rationales 14

A developing regulatory environment 16

Outlook 17

Contacts 18

Methodology 20
Executive summary

A landscape of opportunities
FinTechs in Europe, North America and Asia have caught the attention of
many financial institutions and investors in recent years: the trends and
effects of FinTechs in these markets have consequently been thoroughly
analyzed. This report aims to shed light on a market that exhibits tremendous
potential for FinTech investments, but which has not yet attracted the same
level of attention from international investors.
Sub-Saharan Africa (SSA) is a region of opportunity for FinTech investments
due to its unique economic and demographic environment. The region is
characterized by less-developed financial infrastructure, and an unbanked
population of about 60%. By ensuring access to financial services to this
population, FinTechs have the potential to profoundly change the financial
services landscape and play a pivotal role in improving financial inclusion.
The continent has already proven its readiness for FinTechs: it has one of
the highest mobile phone penetration levels in the world, and is currently
experiencing a boom in mobile financial services and payment technologies.
Currently, the FinTech revolution in Africa is primarily fueled by the
continent’s three main hubs of South Africa, Kenya and Nigeria. These areas
boast relatively more advanced FinTech ecosystems compared to the rest of
the continent.
With local and global players, the FinTech landscape has grown at an
annual rate of approximately 24% over the last 10 years. As observed in
the FinTech sectors of developed countries, the landscape is currently ripe
for consolidation. There are specialized players in the market and their
complimentary business models make them attractive targets for mergers
and acquisitions.
Both private and public investors worldwide have started to pay more
attention to these developments, evidenced by a steady increase in
investments in the SSA FinTech market.
Overall, the sector exhibits promising signs of accelerating growth, ample
investment and business opportunities.

1
 An attractive market
for FinTechs
The FinTech revolution in Sub-Saharan Africa is accelerating
steadily. In a region with a large number of unbanked citizens
and an underdeveloped financial sector, FinTechs are offering
a revolutionary boost to SSA’s financial infrastructure.
The conditions for growth are promising, and the market is
exhibiting favorable signs for continuous development.

FinTechs have had a considerable impact on the financial have is observed in Kenya where a large mobile payment
industry across the world and have proven to be a force provider has revolutionized the way the nation is making
to be reckoned with by established financial institutions. payments to such an extent that 45%3 of the entire nation’s
FinTechs have innovative and customer friendly solutions GDP was processed through its infrastructure. The growth
and a level of flexibility that the traditional institutions potential of the expanding payments sector is emphasized
struggle to provide. by the expectation that the total number of mobile
phone connections will exceed 1 billion by 20254 within a
Their specialized focus and unique value propositions have
population of approximately 1.3 billion.
put pressure on financial institutions to retain customers
and have forced an entire industry to innovate. But what Aside from providing financial services to the end consumer,
potential could FinTechs have in a market that is devoid of many FinTechs’ business models are geared towards
these established financial institutions? improving the financial infrastructure in the SSA region.
Their customers are typically other FinTechs, SMEs, and
This potential has started to be explored in SSA, a region
other corporates, enabling them to offer financial services to
with an under-developed financial sector rendering around
end consumers.
60%1 of the entire adult population without access to
traditional means of financial services. The proportion FinTechs, with their agile approach and latest technologies
of unbanked and underbanked citizens combined with such as data analytics, have already made a profound
a substantial mobile penetration rate of 44%2 have laid impact in SSA’s financial services landscape. This, combined
a fertile foundation for expansion of FinTechs. FinTechs with favorable demographics, an under-represented banking
are already one of the main drivers for financial inclusion sector and a lack of financial infrastructure shows that the
in SSA. An example of the significant impact FinTechs can conditions for growth are promising.

1
World Bank database, 2017
2
GSMA, The Mobile Economy SSA, 2018
3
OECD, African Economic Outlook, 2015
4
GSMA, The Mobile Economy SSA, 2018

2 FinTechs in Sub-Saharan Africa An overview of market developments and investment opportunities

 What are FinTechs?

In general, FinTechs are considered as organizations

combining innovative business models and technology to
enable, enhance and disrupt financial services. They can be
classified into two categories; those FinTechs that provide
financial services (Core FinTechs), and those that enable such
services (Enabling FinTechs).

FinTechs have become an important topic for financial Figure 1: The FinTech Segmentation
institutions globally, and have grown their footprint
considerably in the past few years. But what constitutes a
FinTech and most importantly what does it do? EY defines
s
FinTechs as organizations which combine innovative logie Fin
business models and technology to enable, enhance no a
ch 1 2

nc
and disrupt financial services. The understanding of
Te

ial
9
&

FinTechs, however can be complemented by looking Banking &

Da
8 Payments
ses

at the different FinTech segments. These parameters

ta
Lending
ces

Ana
classify firms according to their business model and
Enabling Pro

positioning in the value chain, rather than by the FinTech’s

lytics
7 InsurTech 3
underlying technology. InvesTech

Overall, the FinTech landscape can be divided into two

FinTech
groups: those that directly provide financial services Fin.
(Core FinTechs) and those that enable the provision of such eMarketplaces &
PropTech
financial services (Enabling FinTechs). Aggregators

6 Financing & 4
The Core FinTechs are arranged in seven distinct segments
Funding
and focus on the delivery of financial solutions and services
to both individuals and businesses.
5
The Enabling FinTechs on the other hand are separated into
RegTech
three segments and enable other businesses to provide
financial services through an array of different channels. 10 Core FinTechs
Enabling FinTechs

Source: EY Analysis

FinTechs in Sub-Saharan Africa An overview of market developments and investment opportunities 3

 FinTech landscape

SSA FinTech landscape has experienced significant growth

over the past decade and is characterized by a dominant
payments sector. This is largely due to the region’s lack
of traditional financial institutions, and a high demand for
financial inclusion.

The FinTech sector in SSA comprises of over 260 active The persistent need for financial inclusion will continue to
companies split into local (80%) and international (20%) drive the growth of these payments segment. Segments
players. The number of FinTechs has grown at a Compound such as banking and lending have also been growing rapidly
Annual Growth Rate (CAGR) of 24% over the past 10 years.5 and new ones such as InsurTech have emerged.
Like the FinTech sectors in more developed markets, the
With the right amount of resources and support, the SSA
payments segment is most dominant in SSA, mainly due to
Fintech sector can not only yield substantial returns, but
the large unbanked population and correlating high demand
also provide significant benefits to the population.
for financial inclusion. The high concentration of mobile
phones in SSA also aided the segments’ expansion.
The majority of Enabling FinTechs are also closely tied
to payments: they establish the payments infrastructure
in the region, and thus further amplify the segment’s
leading position.

Figure 2: Total number of FinTechs in SSA since 2007

300

250 254 261 262

227
200

150 159
129
100
95
50 67
47 55
30 34
0
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Total Projected growth H2 2018

5
Source: EY Analysis

4 FinTechs in Sub-Saharan Africa An overview of market developments and investment opportunities

Figure 3: Distribution of FinTech's segments

100%

80%

60%

40%

20%

0%
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Enabling Processes & Technology Financial eMarketplaces & Aggregators

Payments InvesTech
Banking & Lending RegTech & Security
Fundraising & Financing InsurTech
Financial Data Analytics PropTech

FinTechs in Sub-Saharan Africa An overview of market developments and investment opportunities 5

 Regional FinTech hubs

The SSA FinTech landscape is led by three main hubs:

South Africa, Kenya and Nigeria. These hubs not only drive
innovation within the sector but also shape the future of
the financial industry. Looking at the growing success and
interest in these existing hubs, it is expected that FinTechs
will start to expand to other SSA countries in the near future.

The three main FinTech hubs in SSA have been formed in Nigeria’s FinTech sector is the third largest hub, with most of
the economic centers of South, East and West Africa: South its FinTechs based in Lagos. Like Kenya, the Nigerian FinTech
Africa, Kenya and Nigeria respectively. sector is dominated by the payments segment. Trends have
shown that the focus of FinTechs here is on the needs of the
South African FinTechs are predominantly located in both
retail sector.
Cape Town and Johannesburg. Arguably the epicenter
of SSA FinTechs, South Africa harbors about a third of The three main hubs distinguish themselves from the rest
the firms. As the most diversified hub, it exhibits great of SSA through their relatively more advanced FinTech
similarities to more developed markets. Its focus is ecosystems and are consequently relevant harbors of
strategically placed on the Enabling FinTech segments, investment opportunities.
making the country one of the main contributors to the
In addition to the three main hubs, recent developments
growth of FinTech across the continent.
have shown encouraging signs of FinTech growth in Ghana,
Kenya, the second largest FinTech hub, hosts around 20% Uganda, Cameroon and Rwanda.6 Given the increasing
of the entire FinTech landscape, and has a stronger focus interest in the FinTech segment, it is expected that the
on the payments segment. The Kenyan hub is located in FinTech ecosystem will further improve across more
Nairobi, which is home to more than 50 FinTechs. countries in SSA in the near future.

6
Source: EY Analysis

6 FinTechs in Sub-Saharan Africa An overview of market developments and investment opportunities

Figure 4: FinTech segments in the main regional hubs

4%
5%
2%

9% 27%

Kenya
20%

33%

3%
6%
3% 18%

15%

Nigeria

18% 38%

2%
5%
6%
Enabling Processes & Technology 3%
Payments 35%
Banking & Lending 10%
Fundraising & Financing
South
Africa
Financial Data Analytics 6%
Financial eMarketplaces & Aggregators
InvesTech 11%
RegTech & Security 19%

InsurTech
PropTech

FinTechs in Sub-Saharan Africa An overview of market developments and investment opportunities 7

 The FinTech ecosystem

Sub-Saharan Africa has emerged as one of the fastest

growing FinTech regions across the globe. The evolution
of the local ecosystem is the base for future FinTech
development.

The basic foundation for the evolution of a FinTech landscape Figure 5: The FinTech Ecosystem
is the local ecosystem. All three leading FinTech Hubs in Sub-
Saharan Africa have developed a vibrant and healthy start-up Entrepr-
eneurs
environment as the base for FinTech growth. Academia Technology
Firms

The FinTech ecosystem comprises a number of attributes d er

Traditional
ol

and stakeholders that influence the strength of the overall

h
ke

FIs
Talent
Sta

sector’s development. The following framework visualizes es

t
bu

the relationships between the four pillars of an effective and

tri

Angel
At

Investors
healthy ecosystem and how stakeholders affect each other. FinTech Consumers
Capital Firms Demand

VC

Policy Corporates

IPO

Government
Regulators
Source: EY Analysis

Talent Policy
SSA has the fastest growing workforce globally, which is predicted to Governments in SSA are starting to show interest in supporting
represent over 25% of the global workforce by 2050.7 However, limited FinTechs and innovation in the financial services sector. However,
employment opportunities for traditional jobs creates a more creative the region is highly heterogeneous and little to no subsidies and tax
entrepreneurial environment where young graduates look to innovate incentives have been implemented.
and develop new solutions.

Demand Capital
The potential demand for FinTechs in SSA is tremendous due to the In contrast to capital flows in established financial services,
fast growing and underbanked population. The under-developed investments in FinTechs have grown substantially in recent years.
financial sector also leaves SMEs and entrepreneurs with a lack Volumes are still lacking significantly behind more developed
of access to financial services resulting in a high demand for markets, driven by the market maturity and overall valuations.
financial inclusion.

7
UN Data

8 FinTechs in Sub-Saharan Africa An overview of market developments and investment opportunities

The Ecosystem of the main hubs

Applying the FinTech ecosystem framework to the three main hubs further emphasizes positive
developments taking place in SSA.

Attribute Current Trend South Africa

►► South Africa is the most developed hub in SSA thanks to a relatively mature
Talent Low financial sector and an extensive network of roughly 80 VCs and angel investors
►► The creation of many accelerators and incubators (approx. 20) has attracted many
Demand High international technology giants
►► Although still limited, the local regulators are starting to set favourable frameworks
for FinTechs: one of these is the incubation Support Program, which aims to
Policy Low
encourage development of the local ecosystem
►► Local talent benefits from the international exposure. Accelerator programs led by
Capital Medium-Low local universities aim to fuel the region’s entrepreneurial spirit

Attribute Current Trend Nigeria

►► The ecosystem in Nigeria has developed rapidly. The network of VCs and investors
Talent Medium
stands at approx. 40, and the incubator system is also in development
►► Local governments’ involvement through tax incentives for VCs has attracted
Demand High international attention and will boost the ecosystem’s attractiveness
►► There is vast potential for growth: Nigeria has the largest population in SSA
Policy Low (and 60% unbanked), and the population of Lagos is expected to double in the next
15 years
►► The talent to support this growth is developing through local universities’
Capital Medium
accelerator initiatives

Attribute Current Trend Kenya

►► Kenya has the most prominent FinTech success stories
Talent Medium-High
►► Local investors and VCs (approx. 30) is complemented by the steady rise
of international investors. In addition, there is a growing interest amongst
Demand High international technology players keen to invest in accelerator programs led by
VISA, Microsoft and Barclays
►► Policy framework in Nairobi is showing signs of improvement. The government’s
Policy Low
recently released draft regulation for FinTech companies is expected to be turned
into law soon
Capital Medium-High ►► Retreating international banks are freeing up talent, fuelled by university initiatives

FinTechs in Sub-Saharan Africa An overview of market developments and investment opportunities 9

 International FinTechs in SSA

Although the international players play a secondary role

in terms of number of FinTechs, investors see them as an
attractive alternative due to their considerable impact on the
SSA FinTech landscape.

International FinTech players in SSA are typically those who Figure 6: International FinTechs per segment in SSA
have actively invested and are operating in SSA, but have
their headquarters outside of Africa. More than 50% of these 2% 2%
2%
international FinTechs originate from the UK and the US. 2% Enabling Processes &
The remainder are based predominately in Europe, Canada, Technology
8% Payments
India and China. 31%
Banking & Lending
As with local players, many of the international FinTechs Financial Data Analytics
(approx. 40%) focus on the payments segment. In addition, 16% Financial eMarketplaces &
Aggregators
some of these FinTechs are targeting the African diaspora InvesTech
and providing low cost remittance solutions. This is of RegTech & Security
particular interest as the cost of sending remittances to SSA InsurTech
is amongst the highest in the world. 37%

Approximately 30% of the international players are

Enabling FinTechs providing infrastructure services.
These international FinTechs typically gain experience in
Figure 7: Number of international FinTechs in SSA
the developed markets before expanding to SSA in order
to capitalize on the opportunities available in the region. 49
47 47 48
Their experience, success and most importantly accessibility
to international investors render international players an 36
30
attractive investment alternative to local players in the SSA 23
20
FinTech sector. 13 14
10
As observed in the overall trend, the number of international
FinTechs has stabilized over the past three to four years.
The focus of these FinTechs is to consolidate and grow their
business further in the SSA region. 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 H1 2018

Source: EY Analysis

10 FinTechs in Sub-Saharan Africa An overview of market developments and investment opportunities

8
CB Insights

FinTechs in Sub-Saharan Africa An overview of market developments and investment opportunities 11

 Investors gain faith in
SSA FinTechs: however,
challenges remain
The increase in investment flows into the SSA FinTech sector
aligns with its impressive expansion in recent years and
accentuates its considerable potential for further growth in
the future.

Investors have been carefully monitoring developments in Development Financial Institutions (DFIs) and Strategic
the FinTech landscape in SSA: in recent years, they have Investors.
started to act upon the favorable conditions for FinTechs
Dominating a near equal investment market share, VCs, DFIs
in SSA. These conditions include the fundamental gaps in
and Strategic Investors have driven the wave of investment
offering traditional financial services which the FinTechs
flows into SSA and considerably contributed to the rapid
are able to bridge, and the willingness of the population to
growth of the sector.8
adapt to these innovative solutions and services. The rise of
mobile penetration and smartphone ownership provides the While general M&A activity in SSA has decreased in recent
necessary building blocks to support such solutions. years due to economic and currency related uncertainties,
international investors have continued to invest in the
As a result, investments in FinTechs have reached more than
FinTech segment in SSA. In particular, PE and VC funds
US$100m over the last two years. Traditionally, investors
with specific regional or segment focus and DFIs see
have concentrated in the three main FinTech hubs: now,
FinTechs in SSA as an attractive segment which supports
however, new destinations for foreign investments such as
their growth and sustainability investment cases. To gain
Ghana, Uganda, Cameroon and Rwanda are emerging.
market access, investors either expand their current offering
There are five types of investors that are active in SSA: to African markets e.g., via subsidiaries or branches, or
acquire local FinTech companies in order to gain early
Angel Investors initially dominated the investor landscape:
footprint. Furthermore, cross industry collaborations
their focus is investing in startups at the seeding stage.
such as between financial services and other industries
They were later joined by Private Equity funds (PE).
(e.g., telecommunications) are also explored: however,
Currently, the largest players in the investor landscape are international investors still see some limitations in investing
Venture Capital funds (VCs). in SSA, notably a lack of transparency and access to
potential targets, and the small deal sizes.

8
CB Insights

12 FinTechs in Sub-Saharan Africa An overview of market developments and investment opportunities

Considering that the African FinTech landscape is still a growing territory for many international investors, there are key
challenges that investors face during the whole investment process:

Key challenges occurring in the investment process

Due Value
Origination Inception Exit
Diligence Creation

Lack of Need for local Legal and Reaching Variations in

transparency and business experts regulatory set up customer base terms of holding
access to formal and contacts requires evolution periods due to less
information and of distribution homogenous value
networks approaches creation

Variety of Limited access to Strongly attached Local and regional Investment risks
unknown and information and and inexperienced footprint and due to external and
unstable factors lack of accurate management infrastructure market factors
(e.g., business data teams required to execute
infrastructure and growth models
regulations)

Small deal sizes Identification of Difference in legal Low margins Risks in cost
do not fit existing market, operational and compliance require efficiency, effective exit
investment and financial risks standards quality and process in relation
structures leverage of digital to value
solutions

FinTechs in Sub-Saharan Africa An overview of market developments and investment opportunities 13

 Understanding investor
rationales
Apart from seeking high returns on investments, many
investors are driven to the FinTech segment by the
opportunity to make a positive social impact, and also as
a means of diversifying their portfolios. Creating digital
ecosystems and making investments that are sustainable are
also rationale for international investors’ interest in SSA.

This rationale is the primary motivation for most investment activity, and FinTech
investments in SSA are no exception. The significant underbanked population combined
with a lack of financial infrastructure presents a fertile ground for significant growth
High returns potential and high returns. In addition, the population in SSA is growing fast and therefore
on standalone so is the demand for financial services. The rising number of deals supports the notion
that investors have started to gain confidence in FinTechs operating in SSA and have seen
Investments their high potential.

Synergies play a key role for strategic and financial investors that acquire several
companies with complimentary business models (more of the same). Deep market
knowledge and synergies make businesses more efficient and can therefore give them
a competitive advantage. In particular, cost and revenue synergies can be realized by
Synergies
acquiring, merging or enabling companies.
and
Scalable business models with an existing regional spread, or technology which can be
scalability easily replicated without suffering from legacy infrastructure are investors’ focus. Being
able to use innovative and disruptive solutions or business models to enable or leverage
an existing operations or portfolio of incumbent companies is also another rationale.

14 FinTechs in Sub-Saharan Africa An overview of market developments and investment opportunities

 With industry convergence and open banking becoming a norm, many investors are
looking to invest in companies with a business model focused on digital ecosystems.
FinTechs, with their modern technology and open IT architecture therefore become an
Creating attractive investment option. In SSA, this is even more promising, as the market is not
digital plagued by legacy financial infrastructures, and there is a high penetration of mobile
phones. The more digital ecosystems gain entry in Financial Services, the more investors
ecosystems will focus on this investment segment. This promises them the freedom to invest in a
variety of companies in order to build a sustainable ecosystem, cutting across services
and industries by bundling the customer relationship.

FinTechs presents an opportunity to bring the SSA population within the realms of formal
financial systems. FinTechs enable access to underbanked customers, resulting in a
growing customer base. This growth opportunity for additional services and new business
Financial models will drive investments in FinTechs.
inclusion and Furthermore, there is a growing investor demand for other sustainable and green financial
sustainable investments, driven by customer behavior and public and political interest. Investment
focus is created by purposeful and conscious investment behavior, branding focus and
investments increasing funding in this asset class.

FinTechs in Sub-Saharan Africa An overview of market developments and investment opportunities 15

 A developing regulatory
environment
The regulatory environment in SSA is certainly
adapting to the growing demand for FinTechs
and governments are starting to set incentives.
However, it is difficult to make a clear assessment
about specific regulations in SSA, as they may vary
considerably among the different countries.
However, there are general identifiable trends in the
regulatory environment, which may allow stipulations
regarding the current and future state in the SSA
FinTech landscape. The regulations are aimed to
balance the growth of the sector whilst providing
appropriate protection for consumers. In few other
SSA countries like Uganda or Tanzania, regulators
are receptive to FinTech developments and they see
FinTechs as an important driver for financial inclusion.
As FinTechs rely heavily on the collection and
processing of data, regulations regarding data
protection are an important part of the overall
regulatory landscape. Currently, a few countries such
as South Africa, Kenya, Ghana and Uganda have a
more advanced data regulation framework.

16 FinTechs in Sub-Saharan Africa An overview of market developments and investment opportunities

 Outlook

Trends in the SSA FinTech landscape are consistently moving

in its favor; should they persist at the current rate, the sector
could become an international contender in the near future.

The SSA FinTech landscape has experienced an impressive Although there are currently more local players in the
Compound Annual Growth Rate of 24% over the market, the role of international players in SSA is expected
past decade. According to the latest EY FinTech adoption to expand as the FinTech landscape continues to mature.
index, the key drivers of fast adoption of FinTech are the This is due to the enhanced transferability of innovative
favorable demographics and high use of internet and mobile solutions that have yet to gain footing in the SSA market.
technology. As this study shows, South Africa already has a Another area that may also attract further involvement from
high FinTech adoption rate and is expected to increase even international FinTechs is that of reverse innovation, which is
further. It can be expected that a similar trend will follow in also expected to grow due to different challenges in the SSA
other SSA countries. Fintech market.
The SSA FinTech sector will continue to be dominated by Investors have overcome their reservations about the SSA
payments solutions until the need for financial inclusion is sector and have started to invest at an increasing rate.
sufficiently addressed. It can be expected that the smaller This increase in confidence paired with the success of
segments will expand their footprints in the sector as multiple FinTechs across the industry will continue to drive
consumers shift their attention to solutions that satisfy other investments in the sector and positively influence its growth
previously underserved financial needs. Investors can thus trajectory. The increasing development and huge growth
create their investment strategies based on their desired potential of digital ecosystems and sustainable investments
investment drivers. is expected to be a similar investment driver in SSA as in
more developed markets.
The three main FinTech hubs are likely to continue
playing a leading role in providing innovative financial The combination of these trends cements the view that the
solutions. It is also expected that a number of FinTechs SSA FinTech sector has high growth potential and provides
will expand regionally within SSA to provide services to a opportunities for investments.
larger set of customers. Other countries in SSA have also
shown tremendous growth and investment potential in
recent years. Rwanda, for example, has recently launched a
FinTech hub in order to boost its FinTech sector.

FinTechs in Sub-Saharan Africa An overview of market developments and investment opportunities 17

18 FinTechs in Sub-Saharan Africa An overview of market developments and investment opportunities
 Contacts
Investor contacts:
Jan-Erik Behrens (EMEIA)
Partner, Transaction Advisory Services
Ernst & Young GmbH Germany

+49 6196 996 29804

jan-erik.behrens@de.ey.com

Sara Elinson (Americas)

Principal, Americas Fintech M&A Leader
Ernst & Young LLP United States

+1 718 915 4269

sara.elinson@ey.com

Varun Mittal (Emerging Markets)

Associate Partner, Global Emerging Markets Fintech Leader
Ernst & Young Singapore

+65 6340 2927

varun.mittal@sg.ey.com

Africa contacts:
Ashwin Goolab
Partner, Advisory Services
Ernst & Young Inc South Africa

+27 11 772 3532

ashwin.goolab@za.ey.com

Robert J Nyamu
Partner, Risk Advisory
Ernst & Young Kenya

+25 47 2282 2702

robert.nyamu@ke.ey.com

Adedapo O Adewole
IT Advisory Leader
Ernst & Young Nigeria

+234 802 295 3000

adedapo.adewole@ng.ey.com

Contributors:
Lennart Hientz
+49 6196 996 29479
lennart.hientz@de.ey.com

Charul Bhatia
+49 6196 996 19888
charul.bhatia@de.ey.com

FinTechs in Sub-Saharan Africa An overview of market developments and investment opportunities 19

Methodology

This report is based on primary and secondary research, using ►► Mature FinTechs (over 10 years)
publicly available information and insights from market experts.
►► Companies not using innovative technology
The FinTechs covered have been identified on the basis of The
EY definition of FinTech. EY defines FinTechs as organizations Furthermore, the FinTech universe in this report refers only to
combining innovative business models and technology to enable, what we define as “active” companies, i.e., those:
enhance and disrupt financial services. Correspondingly, the
►► Still operating in the market
FinTech universe comprises only those companies, to which our
definition of FinTech applies. ►► Acting in the market as a stand-alone entity (not just a solution
of another FinTech)
In particular, FinTechs can be defined as:
With exclusion of companies that:
►► Companies whose primary business focus lies on
financial services ►► Are no longer active in the market (i.e., due to insolvency)

►► Stand-alone companies, not products/solutions of ►► Companies that do not operate as a stand-alone entity
established companies (i.e., acquired by another company)

►► Start-ups to maturing companies (maximum 10 years All the FinTechs identified were analyzed through the above
after foundation) definition of FinTechs. Owing to its dynamic nature, FinTech
landscape in SSA is subject to continuous and frequent changes,
►► Business models based on new and innovative technology and is characterized by limited information. Therefore, EY does
FinTechs are not considered as: not secure completeness of data and the numbers are subject
to change.
►► Services related to finance functions of corporates (accounting,
finance, invoice, working capital management software etc.,
for non-financial institutions)
►► “FinTech”-like solutions/products (digital wallet etc.) of
established market players

20 FinTechs in Sub-Saharan Africa An overview of market developments and investment opportunities

Notes:

FinTechs in Sub-Saharan Africa An overview of market developments and investment opportunities 21

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has been printed on paper with a high recycled content.

This material has been prepared for general informational purposes only and is not intended to
be relied upon as accounting, tax or other professional advice. Please refer to your advisors for
specific advice.

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