According to a recent analysis analysing the expansion of Africa’s fintech ecosystem during the previous two years, there were fewer active blockchain companies with a fintech emphasis in Africa between 2021 and 2023.

The report claims that between 2017 and 2019, the number of blockchain startups operating in Africa increased by 150%, reaching 45 (9.2% of the total). However, there has been a noticeable fall in the sector on the continent due to the volatility in the cryptocurrency markets and as the excitement around crypto continues to wane.

In 2021, there were 42 active blockchain startups, or 7% of the total. As of now, there are 37 firms, or just 5.5% of the total. Nigerian entrepreneurs make up more than half of the startups, with 21 startups representing 58% of active companies, revealed by the report.

Additionally, the percentage for Nigeria indicates a significant increase from 17.8% in 2019 and 11% in 2017, which the research claims demonstrates that blockchain is “alive and well” in the West African country. The remaining blockchain startups in Africa are based in South Africa (9 startups) and Kenya (3 startups).

Blockchain was third among the top fintech funding categories between 2015 and 2023, receiving 4.9% of the total fintech capital in Africa.

In contrast to the previous figure of 576 in 2021, the overall number of fintech startups in Africa increased to 678 in 2023. This represents a considerable gain of 17.7%.

The growth rate shown between 2019 and 2017—during which time the number of active ventures increased by 17.3%—is mirrored by the 17.7% increase in fintech startups. Between 2017 and 2023, the number of active fintech companies in Africa increased by a whopping 125.2%.

With the exception of South Africa, all major markets on the continent are experiencing rise in the number of active ventures. According to the survey, the number of fintech companies based in Egypt and Nigeria has increased notably quickly, by 66.7 percent and 50 percent, respectively, during the past two years.

According to the survey, between 2019 and 2021, about 40% of the fintech firms that are currently in existence were started.

A total of 115 businesses, or 20 percent, have stopped operating since the previous edition of the report tracking development between 2017 and 2019 included 576 startups.

NB: The blockchain research concentrated on businesses operating in the cryptocurrency and blockchain sectors, including those who integrate these technologies into other industries.