Is Africa fintech’s next frontier?

Africa’s Fintech sector is witnessing unprecedented growth, driven by an influx of foreign investors hoping to get in on the ground floor of an ecosystem ripe for innovation. Moreover, startups are securing around $330.5 million in H1 2021, more than double the amount raised the entire year before.

The sheer size of the market and recent success stories like Nigeria-born payments startup Flutterwave—which achieved unicorn status in March with a $170 million round, – have made the continent more attractive. Valuations in Africa are another draw for foreign investors, as prices skyrocket in regions like the US and Europe.

Africa hasn’t been a priority because VCs have been able to make stellar returns in the West. But some smaller investors may find it more difficult to produce good returns based on current valuations, leading them to look further afield.