FUNDING | Crypto & Blockchain Category in Africa Received the Least Fintech Funding in H1 2023, Reveals Latest Report

According to data gathered by Afridigest’s Fintech Transactions Database for the first half of 2023, banking / lending dominated the funding scene in Africa while crypto and blockchain was the category that saw the least amount of funding.

The ranking was carried out by Afridigest, a prominent source for insights into Africa’s technology ecosystem, which analyzed financial activities spanning Week 1 to Week 26 in 2023. The comprehensive assessment encompassed equity fundraising, debt fundraising, and mergers and acquisitions (M&A) transactions, while excluding grants to align with internationally recognized best practices in deal reporting.

As outlined in the report:

* Banking / lending platforms received the most funding 66% of total funding

• Crypto and blockchain received the least funding at 2% of total funding
• Egypt emerged as the front-runner on the list securing a remarkable $402 million (34% of total funding) across 7 deals
• Following closely are South Africa, Kenya, and Nigeria, with funding amounts of $304 million, $280 million, and $90 million, respectively, achieved through 11, 13, and 31 deals, respectively

Collectively, 75 African fintech startups monitored by Afridigest reported a total of $1.2 billion in raised risk capital through 85 transactions. This translates to an average of 14 deals and around $200 million in funding raised per month.

According to Afridigest:

“Fintech is the leading sector for VC funding in Africa today. Roughly $0.40 out of every dollar raised by an Africa-focused startup goes to a fintech company.” – AfriDigest

Here’s the breakdown of fintech funding in various countries:

• Egypt – $402 million
• South Africa – $304 million
• Kenya – $280 million
• Nigeria – $90 million
• Rwanda – $6 million
• Guinea – $3.3 million
• Tanzania – $2.6 million
• Zambia – $1.6 million
• Morocco – $1.2 million
• Ethiopia – $1 million
• Democratic Republic of Congo (DRC) – $0.5 million
• Ghana: $0.2 million
• Senegal – $0.1 million
• Uganda – $0.1 million
• Cameroon – $0.1 million

The report indicates that:

• Equity funding for African fintech companies witnessed a decline of about 40 percent during the first half of 2022 when compared to the preceding year.
• In contrast, debt financing demonstrated strong expansion experiencing a significant increase of over 80 percent.

Notable players in the Banking/Lending sector during the period in question include lending platforms such as MNT-Halan and Lulalend. Others are digital banks like TymeBank and FairMoney, along with asset financing platforms like M-Kopa and Planet42.

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