In the third quarter of 2024, while global fintech investments experienced a 25% decline, Africa saw an astounding 688% increase.
When we break this down numerically, investments in Africa rose from $34 million in the second quarter of 2024 to an impressive $268 million in the third quarter. Fintech companies on the continent raised more capital in the third quarter than in the combined total of the first and second quarters, having previously secured $131 million in the first quarter.
Although the first quarter of 2023 saw a record investment of $412 million, this significant rise in Africa’s fintech sector had not been observed in the past five quarters.
The primary contributor to this achievement was the Egyptian company MNT-Halan, which raised $158 million in a Series E funding round in July. This single investment accounted for nearly 60% of Africa’s total funding in the third quarter, indicating that other companies in the region have not been as successful.
Similarly, companies like Kenya-based Nala and Egyptian startup Paymob represent almost half of the remaining investments in this sector.
While we have discussed the global downturn in fintech funding, it is noteworthy that despite the rising investment rates in Africa, the continent accounts for only 3.7% of total global investments. Experts link the decline in global fintech funding to a general slowdown in investment across the technology sector. However, according to the CB Insights report:
“While funding tumbled quarter-over-quarter (QoQ), the drop wasn’t as severe as it looks. The prior quarter’s level was propped up by $1.3 billion worth of funding to Stripe and AlphaSense. Excluding these rounds, the decline from Q2’24 to Q3’24 would have been 13%.”
