The African technology sector is a thriving business that is constantly increasing. The adoption of new technologies from other parts of the globe is hastening the development of innovations on the African continent, which is transitioning away from conventional activities and into the new wave of the Digital Revolution.
Only in 2020 did African businesses raise a total of up to one billion dollars in investment, setting a new world record.
Seven hundred million dollars of the billion-dollar investment pool has been allocated to technical start-ups. One of the primary reasons for the rapid rise of technology companies in Africa has been the construction of several technology centers around the continent. According to qz.com, the number of technology hubs in Africa increased by 50 percent in the year 2019. Among the top nations in terms of technology hubs are Nigeria and South Africa, which have 85 and 80 hubs respectively.
The Fintech business is one of the most dynamic and influential sectors in the startup ecosystem, both in terms of vitality and weight. The term “Fintech” is derived from the combination of the terms “financial technology” and “financial services,” and it is defined as any services that aim to increase the automation of financial operations in both businesses and individuals. This may be used to any business, with the health, education, finance, and financial sectors being among the most popular.
The expansion of online banking organizations would serve as an excellent illustration of the activities of the Fintech industry, as would be expected. Because there are no fixed expenses associated with having physical branches, online banking is becoming more popular. As a result, costs are decreased significantly. As a result, online banks are able to provide their customers with free accounts, which means that they will not be charged any fees for the administration of their savings or the usage of their credit cards.
Kuda Bank is an excellent example of a successful African internet bank that has achieved widespread popularity. The Nigerian-based firm was successful in raising a seed round of $10 million dollars in 2020, and the company’s development has been exponential since then. Babs Ogundeyi, the company’s co-founder and CEO, has not only succeeded in improving the lives of customers, but he is also promoting policies within his organization to encourage the recruitment of female employees in order to close the gender gap in the technology industry, which is a problem that exists throughout the world, not just in Africa.
Throughout terms of financial services, mobile-based payments, which are growing more popular in Africa,
are also getting increasingly popular. Because of the fast expansion of the internet and online marketplaces, services such as PayPal (created by Elon Musk, CEO of Tesla) have become a worldwide phenomenon. PayPal is one such example.
Many internet platforms, such as online casinos such as those featured on Casinos.co.za, have found that the acceptance of mobile-based payments has become critical to their business models. It is a list of South African casinos that have incorporated various payment methods like as Neteller, PaybyPhone, and even cryptocurrencies such as Bitcoin, into their operations. At addition, customers have the opportunity to bet in sites that include games from the world’s largest slot developers, such as Playtech or NetEnt, and the ability to make payments directly from a mobile device has been cited as a major factor in the industry’s development.
Flutterwave, a payment platform developed in Africa, is now one of the fastest-growing payment systems in the world. It has a presence in 12 African nations, including Uganda, Nigeria, Ghana, and Cameroon, and even has a foothold on the international stage in the United Kingdom, according to the company.
Flutterwave describes itself as a firm that facilitates money transactions. With more than 150 different currencies in its repertoire, the company has pushed its business to the next level by offering credit cards, payment connections for external clients, and even an internet shop where businesses may sell their wares and services to customers. Their transactions have totaled more than 100 million dollars in value, with a total value of $5 billion dollars. In 2020, they will close a $35 million dollar investment round. Following the increase in the amount of cash they have raised, they have now been valued at more over one billion dollars, making this firm one of the very few “Unicorns” on the whole African continent, according to the website Antler.co.
The emergence of startups in other areas, such as the health business, is being seen. Examples include Medsaf,
a service that connects pharmaceutical suppliers with hospitals and pharmacies, and Hellium Health, which provides medical services and is present in numerous African nations. Both firms raised a total of 3.5 million and 10 million dollars in just one year in 2020, respectively.
Global investors are aware of the tech startup landscape in Africa and the investments will surely continue to grow in the next couple of years, meaning that countries will have new ways of developing their economies and hope for a positive and permanent impact in the long term.