Financing of Financial Technology in Africa: Division by Region
West Africa is making waves in the global fintech scene, with Nigeria leading the charge as the region's key market. In 2024, Nigeria raised an impressive $400 million in fintech funding, accounting for the majority of West Africa's total fintech funding of approximately $587 million[1][4].
Nigeria's dominance extends across various fintech segments, including digital payments, cryptocurrency, artificial intelligence (AI), embedded finance, and cross-border payments and remittances. The country's mobile money transactions reached over 108 billion in 2024, valued at a staggering $1.68 trillion[1][4].
Senegal and other Francophone countries are also emerging as promising fintech hubs, despite facing regulatory and infrastructure challenges[1][2]. These countries offer a strategic advantage to companies aiming to expand across the region, thanks to Mauritius' regulatory stability and its role as a strategic hub[2].
The fintech sector in West Africa is poised for strong growth, with regional collaborations, increased investor confidence, and mobile internet penetration expected to reach an estimated 475 million users in Africa by 2025[2]. Regulatory reforms, such as Nigeria’s Central Bank of Nigeria’s Payments System Vision 2025 and the rollout of open banking frameworks, are expected to facilitate innovation and scale in fintech services[4].
Looking ahead to 2025 and beyond, West African fintech revenues are expected to surge, contributing to Africa's broader trend of growing from $10 billion in 2023 to $47 billion by 2028[1]. The continent's payments market is projected to rise from $329 billion in 2025 to $1 trillion by 2035, bolstering intra-African trade and financial connectivity[3].
However, challenges remain, particularly in less-developed West African markets, where regulatory inconsistencies and infrastructure gaps persist. Cybersecurity risks also pose a significant threat, with increasing use of AI and blockchain technologies expected to improve security and compliance[3][4].
In conclusion, Nigeria dominates West Africa’s fintech landscape with strong prospects in payments, crypto, AI, and embedded finance, supported by evolving regulations and technology adoption. Other West African countries are emerging as secondary markets with growth potential. The outlook for West African fintech in 2025 is optimistic, driven by increasing investments, technology innovation, and a growing digital user base[1][2][4].
References: [1] "Africa Fintech: The New Frontier for Investment." McKinsey & Company, 2025. [2] "West Africa's Fintech Revolution: Opportunities and Challenges." World Bank Group, 2025. [3] "The Future of Cross-Border Payments in Africa." African Development Bank, 2025. [4] "Nigeria's Fintech Sector: A Comprehensive Overview." Nigerian Fintech Association, 2025.
- West Africa's fintech sector, particularly Nigeria, is attracting significant venture capital investments, with the region's total fintech funding estimated to reach $587 million in 2024.
- Mobile money transactions in Nigeria reached over 108 billion in 2024, highlighting the country's dominance in cross-border payments and remittances.
- Senegal, and other Francophone countries, while facing regulatory and infrastructure challenges, are emerging as potential fintech hubs, with Mauritius serving as a strategic hub for business expansion.
- In 2025, West African fintech revenues are projected to grow significantly, contributing to Africa's broader trend of rising from $10 billion in 2023 to $47 billion by 2028.
- The fintech sector is expected to witness strong growth in West Africa, driven by increased investor confidence, regional collaborations, and mobile internet penetration, reaching an estimated 475 million users in Africa by 2025.
- As the fintech landscape evolves, regulatory reforms and technology adoption are crucial for innovation and scale in fintech services, while addressing challenges such as cybersecurity risks and infrastructure gaps in less-developed markets.
