Sub-Saharan Africa leads in fintech growth

Sub-Saharan African fintech companies are outpacing global peers in reaching underserved populations but continue to struggle with funding and growth, according to the World Economic Forum's Future of Global Fintech 2025 report.The fintech sector in Sub-Saharan Africa (SSA) leads the global bunch in serving MSMEs, low-income customers, and rural populations and employin diverse strategies to reach rural customers, with 66% providing financial literacy programmes, 66% offering services in local languages, 66% using agent networks, and 61% providing services through USSD or SMS channels.Digital payments rule the roost in the Sub-Saharan African fintech landscape, with cross-border remittances accounting for 45% of digital payment categories, money transfers at 43%, and domestic remittances at 40%.Despite this, the region faces significant funding challenges with 35% of Sub-Saharan African fintechs reporting that their funding environment had somewhat worsened, while 18% said it had significantly worsened. The report found that 85% of regional fintechs identified venture capital availability as a key factor affecting their operations.Technology partnerships have become critical for the region's fintech companies, with 55% citing technological solutions and infrastructure as their primary reason for forming partnerships, reflecting the sector's focus on leveraging technology for efficiency and innovation.The region's performance metrics lag behind global averages with customer growth at 21% compared to the global average of 37%, while revenue growth stood at 23% against a worldwide figure of 40%. Profit growth was the lowest in the world at 27%, compared to the global average of 39%, attributed to economic instability, limited capital access, and infrastructure constraints.Artificial intelligence adoption presents mixed results for Sub-Saharan African fintechs. With only 16% having implemented AI for customer service, those that have adopted the technology report significant benefits. Fifty-three percent of fintech companies that have aadopted AI experienced significant profitability improvements, and 35% reported substantial increases in research and development activities.However, regional fintechs express heightened concern about AI risks, with 96% rating AI-generated deepfakes and bias discrimination as moderate to very high risks.– irene-mari@nmh-hub.com.na

Sub-Saharan Africa leads in fintech growth

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Republikein 2026-01-20

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Sub-Saharan Africa leads in fintech growth

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Republikein 2026-01-20

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