Kenya is among the top three countries in Africa with the bigger portion of fintech funding in the first half of 2023.
According to Afridigest Fintech Transactions Database, Kenya’s share of the fintech funding in the first-half of 2023 stands at USD280 million from 13 deals, Egypt and South Africa are leading at USD 402 million and USD 304 million from seven and eleven deals respectively.
In the first half of 2023, 75 fintech startups in Africa announced raising $1.2B in risk capital across 85 transactions.
Nigeria, Rwanda, Guinea and Tanzania fintechs raised USD90million, USD6million, USD3.3million, andUSD2.6 million respectively. Zambia, Morrocco, Ethiopia, DRC and Ghana fintechs raisedUSD1.6million, USD1.2million, USD1.0million, USD0.5 million and USD0.2million respectively.
Fintechs from Senegal, Uganda and Cameroon received USD0.1million each from one, two and three deals respectively.
Equity funding raised by African fintechs in the first half of the year fell 40 per cent from last year. But debt funding was up over 80 per cent.
While the rise in debt is due largely to just two deals (MNT-Halan’s $140M securitized bond issuance and the $200M in debt financing raised by M-Kopa), it’s worth noting that there’d still be a slight y/y increase in H1 debt funding if these deals were excluded.
In terms of verticals, Banking/Lending led the way, accounting for $0.66 of every dollar of equity raised and $0.96 of every dollar of debt raised in H1.
Major players in the Banking/Lending vertical include lending platforms like MNT-Halan and Lulalend, digital banks like TymeBank and FairMoney, and asset financing platforms like M-Kopa and Planet42.
Beyond equity and debt financing, there was also a slight uptick in fintech M&A across Africa with 15 deals announced in the first half of the year, compared to 13 in the same period last year.
