The Future of Fintech in Africa

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Fintech Deal Sizes have grown across the board over the past 5 years.

In the top 3 markets, average Seed cheque sizes have grown the most and are largest in Egypt, reaching $10.5M.

The average seed&nbsp;cheque size for Nigerian startups in 2022 was less than half of an Egytian seed, at $4.5 million. Average Early Stage cheques are&nbsp;highest in Nigeria, at $90 million.

Though both Egypt and Nigeria is home to fintech unicorns, only South Africa has started to&nbsp;see enough maturity to write late stage fintech cheques in 2022, which averaged $100M.

Over the Past 5 Years, Average Fintech Deal Sizes by Growth Stage in Top 3 African Markets

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In Africa, the funding era for startups has just getting started, with seed and&nbsp;early stage fintech dominating the realm of investments.

The Seed and Early-stage investments make up 72% of total fintech funds raised in 2022, and 86% of all deals inked in 2022 were&nbsp;with seed and early-stage fintech startups.

Africa's Funding Breakdown by Volume and Value from 2018 to 2022

Funding Breakdown by Type–Volume & Value

Nigeria dominates in both the number of startup deals getting inked as well as the amount of funding raised.

Nigeria&rsquo;s fintech&nbsp;fundraising has grown by 39% on average, year on year, across the past 5 years. The trend is upwards, though Nigeria tends to&nbsp;have large years, followed by a decline in fundraising, only to break records again and repeat the yo-yo effect.

Though South African fintechs have raised more capital than Egyptian fintechs over the past 5 years, Egyptian fintechs raised&nbsp;more capital in 2022, and have grown 139% CAGR since 2018.

In contrast, South Africa has only grown fundraising 45% on&nbsp;average across the same time period. If trends continue, Egypt could well cement its 2nd place positioning over South Africa in&nbsp;2023.

Average Fintech Deal Sizes by Growth Stage in Top 3 African Markets

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