According to McKinsey & Co., the financial technology sector in Africa may see sales jump to $30.3 billion by 2025, eight times greater than in 2020, as a rising, young, and underbanked population gains access to the internet.
The consulting firm stated in a study paper that the anticipated growth is a part of a swiftly rising financial services income that is anticipated to rise from $150 billion to $230 billion over the same time period.
According to the report, over two-thirds of Africa’s 1.3 billion inhabitants lack a bank account or full access to financial services, and 90% of all transactions on the continent are still made in cash.
According to a Bloomberg report, the situation presents a development potential for fintech businesses.
“African fintech is emerging as a hotbed for investment, with average deal sizes growing and the proportion of fintech funding in Africa increasing over the past year, bringing jobs and growth to African economies. And the story is only just beginning”
Ghana and francophone countries’ income from financial services The fastest rise will be experienced in West Africa, followed by Nigeria and Egypt, it was reported.