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Egyptian Fintechs Triumph Amidst African 2023 VC Winters
Africa, like everywhere else, saw VC winters set in hard in 2023. However, in the Fintech space, while equity funding was down by 43% vs. 2022, debt funding increased by 34% to US $647 million.
Despite Egypt’s tough economic situation, where inflation has skyrocketed north of 30% and currency valuations have plummeted to less than half their value from the start of the year - Egypt's fintechs still emerged as winners in the African tech ecosystem.
35% of all 2023 fintech funding on the continent went to Egyptian startups comprising 10% of the deals - indicating that ticket sizes in Egypt were significantly larger than in other African countries. On the other hand, more than a third of all African fintech deals were made with Nigerian startups, only garnering 16% of fintech funding - indicating smaller ticket sizes. South Africa and Kenya round out the Big 4 markets in Africa - as per usual.
Related Report
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The Future of Fintech in Africa
Eighteen percent of the world’s population lives in Africa, and 57% of Africans are ‘unbanked’, without a bank account or a digital wallet. This presents a massive opportunity, making fintech the most dominant and funded tech sector in Africa today. This special report highlights how African fintechs not only have one of the largest total addressable markets globally but are also crucial for achieving financial inclusion and empowering unbanked populations. The potential impact of a successful fintech in Africa is unparalleled. To learn more about the drivers, barriers, and opportunities in African fintech, as well as progress toward financial inclusion, read the special report.
