Fintech : « Africa can become a global fintech hub if it manages to tackle the challenges of digitalization and financial inclusion »

By Dounia Ben Mohamed, in Kigali

From February 24 to 26, 2025, the Kigali Convention Center hosted the second edition of the Inclusive FinTech Forum (IFF), gathering more than 3,000 delegates, including policymakers, investors, fintech entrepreneurs, and leaders from financial and development institutions. This event highlighted the growing role of fintech in Africa, particularly in promoting economic inclusion and sustainable development.

Exponential growth of fintech in Africa

Since 2020, the African fintech sector has experienced remarkable growth. Revenues have increased from $3.8 billion in 2020 to a projected $12 billion by 2025. This progress is driven by increased adoption of digital technologies and a growing demand for innovative financial services.

In 2024, African fintechs raised $1.034 billion, accounting for 47% of the total funds raised by startups on the continent, compared to 42% in 2023, according to Africa: The Big Deal (January 13). Despite a slow start to the year, the sector regained momentum in the second half with major raises, including $110 million for Nigeria’s Moniepoint, $157.5 million for Egypt’s MNT-Halan, and $250 million for South Africa’s Tyme. However, the overall trend remains downward since 2021 (which saw $2.4 billion).

With increased competition and more selective investors, African fintechs will need to innovate and explore new markets to maintain their attractiveness. Despite these advancements, challenges remain. The high cost of remittances in Sub-Saharan Africa, averaging 8.37%, remains a major obstacle.

Strengthening the African fintech ecosystem

Recently, several initiatives have been announced to strengthen the African fintech ecosystem. For example, Vodacom unveiled its « Vision 2030, » targeting double-digit EBITDA growth between 2025 and 2030. The company plans to expand its customer base by 50 million to reach 260 million by 2030, focusing on the expansion of financial services across the continent.

At the same time, startups like Nala, based in Tanzania, raised $40 million to expand their digital remittance services, facilitating faster and cheaper transactions for Africans.

Financial inclusion is not just a goal, it’s a responsibility

Governments, regional and international institutions, and financial actors are also working to create a favorable environment for the growth of fintech on the continent. The impact of fintech on populations is a major issue. « Financial inclusion is not just a goal, it’s a responsibility, » said Nick Barigye, CEO of Rwanda Finance Limited, during the opening session of the IFF, the host of the event.

Nshuti Mbabazi, CEO of Better Than Cash Alliance, called on decision-makers: « Borderless fintech must leave no one behind. Africa is a leader in mobile fintech, especially for cross-border remittances. To support the AfCFTA, we urgently need digital payments for merchants at land borders. Responsible fintech is the fastest path—how can we secure regulatory commitments for interoperable payments in two regional blocs by IFF2026? »

Meanwhile, Evelyn Kaingu, CEO of Lupiya, a Zambian microfinance platform, reminded the audience that « 65% of the population in Africa is excluded from the financial system, and 70% of the excluded are women. We are already in Tanzania, and we will soon be in Rwanda to meet these needs. »

Participants at the IFF called for stronger cooperation between governments, regulators, and the private sector to reduce these costs and improve access to financial services. Rwandan President Paul Kagame, present at the event, emphasized the importance of innovation and collaboration to transform Africa’s financial landscape. He encouraged actors to leverage emerging technologies to create inclusive solutions suited to African realities.

Singapore, a strategic partner and model in fintech

Singapore, co-organizer of the event, sent a large delegation to share its expertise. « It’s wonderful to be back in Kigali. This year is special for Singapore and Rwanda as we celebrate 20 years of diplomatic relations, » said Alvin Tan, who served as Minister of State at the Ministry of Culture, Community and Youth, as well as the Ministry of Trade and Industry of Singapore. He also highlighted the strength of the Singaporean fintech ecosystem: « In recent decades, we have built a robust fintech ecosystem that generates billions. 2024 has been a tough year for funding, but our ecosystem has demonstrated its resilience. » He added: « We have much to learn from Africa, particularly in growth, youth, and female entrepreneurship. »

Africa, the future global fintech hub?

While a quarter of the global population remains unbanked, Africa has proven its role as a technological laboratory, notably with the emergence of mobile banking. According to Wamkele Mene, Secretary-General of the AfCFTA, « Africa can become a global fintech hub if it manages to tackle the challenges of digitalization and financial inclusion. » He stressed the importance of regulation, data transfer, consumer protection, and the development of digital identities.

With ambitious initiatives such as the launch of a pan-African cross-border payments project and skills enhancement, the Inclusive Fintech Forum 2025 has positioned itself as a key platform to shape the future of fintech in Africa. This project, established to simplify and secure cross-border payments, aims to create an interoperable digital payments network across Africa. By enabling faster and cheaper transactions between African countries, it not only facilitates intra-African trade but also supports remittances made by diasporas. Reducing the high transfer fees currently prevalent on the continent is a crucial issue for the economic growth of many regions, particularly the more rural ones.

Alongside this initiative, a skills enhancement program has been launched to help train financial sector players, regulators, and entrepreneurs. The goal is to develop a pool of local talent capable of supporting fintech innovation and contributing to the implementation of payment solutions adapted to African realities. This training program relies on partnerships with academic institutions and fintech companies to support the creation of a resilient and inclusive financial ecosystem. The ambition is to make payment technologies accessible to all Africans, whether in large cities or rural areas.

This initiative, involving collaboration between governments, financial institutions, fintechs, and regulators, could radically change the face of payments in Africa. It paves the way for true economic integration and facilitates access to financial services for millions of Africans, especially youth and women. By strengthening cross-border payment infrastructure and developing local skills, Africa could not only accelerate its economic development but also position itself as a global model of financial inclusion and digitalization.

Read more on the same topic :