Anyone looking to launch an African startup in 2023 must be sorely tempted to do so in the fintech space (provided they have the relevant background and expertise). After all, fintech has been on something of a streak on the continent. Most of the continent’s unicorns (startups valued at over US$1 billion) are, for instance, fintech companies. It’s also the technology sector that’s attracted the most VC funding over the past couple of years. In the first half of 2022 alone, there were more than 123 deals, an increase of 84% on H1 2021 when it was already the dominant sector in terms of funding. The proliferation of fintechs in Africa does not, however, mean that there isn’t still opportunity in the sector. Far from it. As an article published in Forbes Africa earlier this year points out, “fintech has not scratched the surface of challenges in the continent still characterised by less developed financial infrastructure and an unbanked population.” The trick for any entrepreneurs is figuring out which problems they’re best suited and skilled to provide solutions for.
SOURCE: AFRICA.COM