According to information compiled by Afridigest’s Fintech Transactions Database for the first half of 2023, lending and banking dominated the continent’s funding sector, with cryptocurrency and blockchain receiving the least amount.

Afridigest, a well-known source for information on the African technology sector, conducted the rating by looking at financial transactions from Week 1 to Week 26 in 2023. To comply with widely accepted best practises in deal reporting, gifts were excluded from the thorough review, which covered equity fundraising, debt fundraising, and mergers and acquisitions (M&A) transactions.

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 study shows that:

During the first half of 2022, compared to the previous year, equity capital for African fintech startups saw a fall of nearly 40%.
Debt financing, on the other hand, showed considerable expansion, increasing significantly by more than 80%.
Lending platforms like MNT-Halan and Lulalend are notable participants in the Banking/Lending business during the relevant time period. Others include asset financing websites like M-Kopa and Planet42, as well as online banks like TymeBank and FairMoney.