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Slow Process of Diversification Away from Payments and Lending Solutions within Africa’s Fintech Space

Disrupt Africa’s Finnovating for Africa publication, released every two years since June 2017, tracks the extraordinary development of the fintech ecosystem across Africa. The fourth edition of the report is released in partnership with AZA Finance, an African fintech company offering secure and efficient financial infrastructure for payments, foreign exchange, and settlement; and Curacel, an insurance infrastructure company that helps insurers and partners in Africa and other emerging markets increase the reach and functionality of insurance through cloud-based tools and APIs. The fintech startup ecosystem is continuing on its growth trajectory from an activity perspective, with the number of startups operating in the space increasing by 17.7 per cent to 678 in 2023 as compared to 2021. Meanwhile, fintech ventures have raised more than US$2.7 billion in VC funding in the last two years, having seen unprecedented growth. There has also been an uptick in M&A activity. Geographically, Nigeria is a clear leader in the fintech space, but from a vertical perspective, the picture is more nuanced.