MEDICI’s new ‘Africa FinTech Report 2020’ is a deep-dive into the sector; it analyzes segments, funding patterns, M&As, partnerships, and countries, and offers perspectives that have been drawn out of regulatory, economic, and market dynamics.

1. 1AFRICA FINTECH REPORT 2020 | EXECUTIVE SUMMARY
EXECUTIVE SUMMARY

2. 2AFRICA FINTECH REPORT 2020 | EXECUTIVE SUMMARY
Research Methodology
The Africa FinTech Report 2020 is a
comprehensive study based on MEDICI’s
proprietary FinTech data on thousands of
startups, deep market intelligence derived from
years of tracking the FinTech industry, and
secondary research that was refined through
brainstorming sessions and in-depth interviews
with segment experts to extract valuable market
signals from the noise, identify market trends,
and develop points of view.
MEDICI has ample information in quantitative and
qualitative forms, which is curated by our industry
analysis and market engagement initiatives. In the
secondary research process, we conducted an in-
depth study of the FinTech landscape in Africa by
understanding the key stakeholders, drivers,
trends, challenges, and opportunities. Key sources
referred to for the secondary research process
spanned across company and industry reports,
press releases, government and other official
sources, national and international databases, our
partners, and many others that facilitated
valuable data-driven insights.
MEDICI combined primary and secondary
research in Payments, Lending, InsurTech,
WealthTech, and Blockchain & Cryptocurrency.
We analyzed over 581 FinTechs in Africa and
down selected 473 of them based on their current
active status.
The qualitative and quantitative findings and
insights were curated by MEDICI analysts to
present a comprehensive view of the FinTech
landscape. These were further refined through
years of deeply tracking industry developments
and bringing together the ecosystem.

3. 3AFRICA FINTECH REPORT 2020 | EXECUTIVE SUMMARY
Introduction
Growth of FinTech Startups in Africa
581
567
525
468
392
313
238
189
158
129
114
90
72
53
44
42
38
2020
2019
2018
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
Before 2005
Africa is a unique region in several ways. The
continent has diverse cultures, different languages,
and wealth distribution is on an extreme spectrum.
Africa also has 6 of the world’s top 10 fastest
economies as per the World Economic Forum;
Africa’s average GDP growth has consistently
outpaced the global average and is expected to
remain at least 6% until 2023.
As a continent, Africa has focused on leveraging
technology, especially in the last decade using
mobile carriers to push the financial inclusion
agenda. Africa’s mobile subscription penetration is
at 80%, and for countries such as Kenya, this figure
is over 91%. This is a major factor for FinTech
booming in the continent. In this report, MEDICI
analyzed 581 FinTechs that have been founded in
Africa, and during the analysis period of this report
from January 2018 to November 2020, over
$821.94 million had been invested in the sector. As
per our analysis of the market over the last four
years, there has been a steady growth in FinTech
funding in Africa between 2016 and 2019. Due to
COVID, the number of startups founded in 2020 has
reduced significantly. The average number of
companies founded between 2015 and 2020 is
close to 66, while the average number of FinTechs
founded between 2010 and 2014 is close to 30,
which shows that FinTech is starting to gain traction
in the African market.
FinTech has played an important role in the growth
of Africa’s financial sector. It has provided an
alternative to the traditional financial sector,
especially in the rural and urban areas where
proximity is a barrier to access services and
products from incumbent banks and FIs.

4. 4AFRICA FINTECH REPORT 2020 | EXECUTIVE SUMMARY
Introduction
Mobile money has been a catalyst to the
revolution in banking and financial services in
Africa, which started in Kenya and subsequently
spread across the continent. It demonstrated that
people are ready to adopt new offerings along
with unlocking an opportunity for entrepreneurs
to develop new solutions that drive financial
inclusion in the continent by providing them
access to financial services from their mobile
phones.
The growth of FinTechs in Africa would potentially
be fueled by the African Continental Free Trade
Agreement that has 54 of the 55 African Union
(AU) nations. Among other objectives, this
agreement aims to create a single market and
deepen economic integrations. Once the
agreement comes into force, Africa would be the
largest free trade area, and this will help FinTech
companies expand their services across the
continent without much regulatory barriers. This
is also likely to incentivize successful FinTech
businesses in overseas markets to introduce their
offerings in the continent.
During this analysis we also observed multiple
acquisitions and exits clearly demonstrating
vibrant consolidation. Over the past decade, there
were over 30 such deals. The two biggest deals
were the acquisition of EMP and DPO Group by
Network International for about $320 million and
$288 million, respectively. A total of 21 of those
were in Payments, indicating a clear consolidation
trend in this segment—the most mature of all
FinTech segments in the continent.
Governments across the continent and regulators
in respective countries are taking steps to bolster
innovation using FinTech as a vehicle.
Here are some of the initiatives:
• Creation of a regulatory sandbox by the
Capital Market Authority in Kenya to test
innovative products in capital markets
• Creation of a taskforce by the Ministry of
Information Communication and Technology
to leverage blockchain AI and IoT in Kenya
• Creation of the National Payment System
Framework and Strategic Vision 2025 for the
national payment industry in South Africa
• Creation of the Digital Asset Marketplace
framework and Mauritius African FinTech hub
(Mauritius)
• Allowing the payment of almost all
government-related services through e-wallets
and other means in Tanzania
• Implementation of the National Financial
Switch project to facilitate the interoperability
of digital payments in Zambia
Local authorities in the continent have
undertaken many other initiatives. Owing to a
large customer base, quick adoption of new
technologies by people, and regulatory support,
FinTechs have a great opportunity to provide
banking and financial services to those who were
previously left out.

5. 5AFRICA FINTECH REPORT 2020 | EXECUTIVE SUMMARY
Africa FinTech Landscape
Break-up of 473 active startups in Africa
South Africa, with 190 active startups, and Nigeria, with 141 active startups, have the largest FinTech
ecosystem in Africa, followed by Kenya. We are also witnessing Egypt, Ghana, Uganda, and Rwanda as
centers of innovation in financial technology in the continent.
Note: Includes only active companies. ‘Other’ includes, Artificial Intelligence/Machine Learning, Capital Market Tech, RegTech,
Remittance, Trade Finance, Loyalty/Rewards, Digital Cards, Big Data Analytics, and Cybersecurity.
105
Payments
78
Lending
41
Wealth
Tech
35
Insur
Tech
50
Blockchain
& Crypto
currency
32
B2B
FinTech
25
Banking
Tech
99
Other
23
Neobanks/
Digital Banks
Number of FinTech Companies by Segment
Country-Wise Break-Up – Top 8
190
South Africa
47
Kenya
18
Egypt
08
Ethiopia
08
Rwanda
14
Uganda
141
Nigeria
09
Ghana
HIGHLOW

6. 6AFRICA FINTECH REPORT 2020 | EXECUTIVE SUMMARY
Growth Over the Years in Top FinTech
Ecosystems in Africa
129
151
178 184 187 190
2015
and
Before
2016 2017 2018 2019 2020
SOUTH AFRICA
45
67
84
109
134 141
2015
and
Before
2016 2017 2018 2019 2020
NIGERIA
5
7
9
13
16
18
2015
and
Before
2016 2017 2018 2019 2020
EGYPT
29
39
45 45 47 47
2015
and
Before
2016 2017 2018 2019 2020
KENYA
Note: The above numbers represent the number of active FinTech companies as of a given year

7. 7AFRICA FINTECH REPORT 2020 | EXECUTIVE SUMMARY
Africa FinTech Funding Analysis
137.2
41.4 44.9
193.5
502.4
126.0
30 44
56 39 56
69
4.6
0.9 0.8
4.9
9.0
1.8
0
25
50
75
0
150
300
450
600
2015 2016 2017 2018 2019 2020
Total Funding ($, Mn) No. of Deals Avg. Funding ($, Mn)
56
For the 2-year period from 2018 till Nov 2020, early-stage funding (Seed + Series A) led the charts in terms of the
number of deals announced, clearly demonstrating growth in the entry of new startups. 14 of these deals were
in Payments, which indicates the continuing focus in the continent on money movement internationally as well
as locally. Only Cellulant from Kenya raised $47.5 million from its Series C round. During our analysis, we also
found that three companies had raised money through equity crowdfunding e.g., Wealth Migrate which raised
over $2.2 million. While most of the companies have raised funds only till Series B in the last two years, it also
indicates that more money will flow into the later funding rounds as the startups expand.
Stage-Wise Break-Up of Total FinTech Funding In Africa: 2018–
Nov. 2020
74.2 75.4
239.2
47.5
385.794
24 10
1
35
0
20
40
60
80
100
0
100
200
300
400
Seed Series A Series B Series C Other
Total Funding ($, Mn) Total No. of Deals
35
01
1024
Note: The total number of deals includes deals with undisclosed amounts. Doesn’t include debt funding, convertible bonds,
grants, ICOs, and IPOs. Other’ includes unknown series rounds, strategic investment deals, crowdfunding, and private equity
rounds.
Note: The total number of deals includes deals with undisclosed amounts. Doesn’t include debt funding, convertible bonds,
grants, ICOs, and IPOs.
Year-Wise FinTech Funding in Africa: 2015–Nov. 2020

8. 8AFRICA FINTECH REPORT 2020 | EXECUTIVE SUMMARY
Active Investors in Africa FinTech
This is not an exhaustive list
TECH COMPANIES BANKS
/FIs VCs/PEs

9. 9AFRICA FINTECH REPORT 2020 | EXECUTIVE SUMMARY
M&A Activity
02
WEALTHTECH
02
B2B FINTECH
02
LENDING
01
INSURTECH
01
REMITTANCE
01
BANKINGTECH
Acquiree Acquirer
Deal Price
($, Mn)
Date Year Segment
EMP
Network
International
340 3/4/2016 2016 Payments
DPO Group
Network
International
288 7/29/2020 2020 Payments
Paystack Stripe 200 10/15/2020 2020 Payments
Fundamo
(PROPRIETARY)
Visa 110 6/9/2011 2011 Payments
Paycorp
Holdings
Actis 95 8/7/2013 2013 Payments
Top 5 Deals
Out of the 31 M&A deals over the last decade, over 70% were in the payments sector. By analyzing the acquirers,
we understand that these acquisitions were strategic in nature. Most of the acquirers have been successful
businesses across geographies, and they wanted to enter Africa through acquisitions. The first ten months of
2020 saw six M&A deals, up from three (M&A deals) in 2019. COVID-19 has accelerated M&A—many brick-and-
mortar shops in the region have been closed. As a result, transactions have reduced and B2Bs and payments
segment startups have been affected. Four out of the six M&A deals in 2020 took place in the payments
segment.
22
PAYMENTS
Number of M&A deals by Segment

10. 10AFRICA FINTECH REPORT 2020 | EXECUTIVE SUMMARY
WealthTech Market Landscape
Investment Platform
Personal Finance Management
Others
This is not an exhaustive list.
Consumer Lending
SME Lending
Software/
White Label/APIs
Marketplaces/Other Alternate Lending
This is not an exhaustive list.
Lending Market Landscape
Note: Includes active companies only. Includes foreign players that have significant business operations in the continent.
This is not an exhaustive list.
Note: Includes active companies only. Includes foreign players that have significant business operations in the continent.

11. 11AFRICA FINTECH REPORT 2020 | EXECUTIVE SUMMARY
InsurTech Market Landscape
Blockchain & Cryptocurrency Market Landscape
Policy Management/Aggregators
Software/White Label/APIs Claims
IoT-Preventive Insurance/ TelematicsOnline First Insurance
Blockchain
Cryptocurrency
Note: Includes active companies only. Includes foreign players that have significant business operations in the continent.
Note: Includes active companies only. Includes foreign players that have significant business operations in the continent.
This is not an exhaustive list.
This is not an exhaustive list.
This is not an exhaustive list.

12. 12AFRICA FINTECH REPORT 2020 | EXECUTIVE SUMMARY
Payments Market Landscape
Note: This includes active companies.
Neobank/Digital Bank Market Landscape
Note: This includes active companies.
Software/White Label/APIs
Payment Gateway/Processors
Mobile/Digital Wallets
PoS/Mobile PoS
Bill Payments
Other
Neobanks
Licenced Digital Banks
This is not an exhaustive list.
This is not an exhaustive list.
This is not an exhaustive list.

13. 13AFRICA FINTECH REPORT 2020 | EXECUTIVE SUMMARY
What’s Inside Africa FinTech Report 2020
Research Methodology
Introduction
Africa FinTech in Numbers
• Regional Break-Up
• Country-Wise Analysis
Investment Activity
• Segment-Wise Funding Analysis
• Stage-Wise Funding Analysis
• M&A Analysis in the Continent
Segments
• WealthTech
• Lending
• InsurTech
• Blockchain & Cryptocurrency
• Payments
Neobanking & Partnerships
Conclusion

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About
MEDICI is the world’s leading FinTech Research and Innovation Platform. MEDICI is a partner to
banks, tech companies and FIs globally with over 13,000 FinTechs on the platform, enabling FinTechs
to scale and create global economic impact. MEDICI is committed to supporting the complex
financial services ecosystem and enabling stakeholders benefit from the industry’s accelerated
growth and global impact.
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