3 Countries To Consider When Expanding to the Fintech Industry in Africa

Young woman dressed in red doing finance on a laptop

The idea of the African El Dorado is a long-standing one. At first, it referred to the continent’s rich natural resources – but with the uptake of technology and rapid urbanization, the definition has since expanded to include opportunities to be had in the banking and financial sectors, and more recently, in FinTech. With a population of over 1.2 billion people, the African continent shows immense potential for FinTech companies, as has also been demonstrated in the past, with fintech startups raising almost $3 billion in funding across Africa in 2021, according to marketing insights by Briter Bridges.

But it is also necessary to remember that while all of Africa holds great promise in terms of FinTech, choosing the right market is key when making an entry in the continent. After all, not all African markets are the same: some are more mature, others emerging, and others still in need of a push. Read on to find out what exactly makes FinTech in Africa stand out and which countries would make for the best investment opportunities.

Why invest in African FinTech: a closer look

There are two main factors that set the scene for FinTech success in many African countries: the generally less developed banking and economic infrastructure and the rapidly growing, increasingly urban population. The gap between the demands of the market and the supplying abilities of the main banking actors creates a white space – in other words, an opportunity to fulfill a need or want. Besides, as the market grows so does funding and with time, regulatory frameworks become more and more supportive, creating the ideal habitat for innovation in the financial sector. According to reports by McKinsey, revenues for African fintechs could be multiplied up to 8 times should penetration levels reach those of market leaders.

1. South Africa

Widely known as an excellent FinTech destination, with approximately 154 FinTech companies, South Africa boasts a long history as a banking and economic centre of excellence. As such, the country houses some of the continent’s top banks and financial organisations, including Standard Bank Group, Absa Group, FirstRand, Investec and Nedbank Group – making it an attractive location for Fintech entrepreneurs. Additionally, South Africa has one of the world’s most considerable premium penetration rates. According to the FSCA’s 2022 Financial Sector Outlook Study, almost 60% of South Africans report using some kind of insurance product, and insurance penetration, calculated by using premiums as a proportion of GDP, was 13.7% in 2020 – one of the highest in the world, surpassing even the US and the UK. This represents an opportunity for companies specialising in InsurTech.

Being one of the more mature markets in Africa and boasting a GDP of $418.02 billion, South Africa is a stable location with good banking and financial infrastructure for investment in FinTech. However, an argument that often comes up against investment in South Africa is that perhaps it is too developed, leaving fewer opportunities for new actors. It is worth mentioning that the USA, with a population of 330 million has over 8,775 fintechs. The UK, with a population of 68 million, has over 2,500 fintechs. When compared to South Africa’s population of 59.31 million for about 150 fintechs, it is clear to see that there is still much room for growth and disruption within the industry.

Still, being more advanced than other African countries, reports by McKinsey suggest that South Africa will likely have the capacity to support and cater for more advanced needs, such as B2B liquidity and anti-money laundering services. Doubtless that companies that have the capacity to fulfil those needs will thrive in the market.

2. Nigeria

A real fintech powerhouse, Nigeria is a land of opportunity for those looking to make their mark in Africa. Firstly, the city of Lagos is the most developed African city for startups and has ranked in the global top 50 cities for E-commerce & Retail Technology, if one is to believe the StartupBlink Ecosystem Index Report 2021. Besides, the country also has several more achievements to its trophy board, with Nigeria receiving 42.1% of the total funding secured in Africa in 2021, 59% of which went to FinTechs, according to the 2021 African Tech Startups Funding Report by Disrupt Africa. What’s more, three private Nigerian start-ups reached unicorn status in 2021, being valued at $1 billion.

Also densely populated, with over 205 million inhabitants, Nigeria is home to just over 200 fintechs – a proportionally lower number than leading countries around the world. This gap is once again, filled with opportunities for companies that can fulfil the local population’s needs.

3. Kenya

An exemplary figure of FinTech innovation in Africa, Kenya is home to over 90 FinTech companies for a population of over 53 million people. One of the most noteworthy facts about the country’s technology advancements is its mobile penetration rate. Indeed, mobile ownership is so widespread in Kenya that there are 12% more mobile phones than there are people. It is not surprising then to learn that mobile phones have been used to deliver more innovative FinTech services. In addition, the Nairobi International Financial Centre (NIFC) was recently opened in Nairobi. It is meant to provide investors in the financial services industry with support and offers, such as tax and immigration incentives and even office space in the new building – making it an excellent opportunity for newcomers in the FinTech industry.

Why choose an EOR for your FinTech company in Africa?

1. Rapid entry into the continent
Entry into the African market does not come cheap or easy. Setting up your own entity can take months, if not years, depending on the different requirements and regulatory frameworks of each African country. In the dynamic FinTech space where new actors are rapidly cropping up and seizing opportunities, this initial time loss can be critical for your FinTech company. Thanks to an Employer of Record (EOR), FinTech companies can fast-track their entry into the continent, and begin operating legally in a fraction of the time. Simultaneously, these companies may then start procedures to set up their own entities locally.
2. Simplified approach to local regulatory frameworks and compliance
Besides, as a relative newcomer to the market, there is much your company must learn about the local regulatory frameworks surrounding FinTech in your host country. These are notoriously complex and may prove burdensome for recently implanted companies. With their knowledge of local law and experience in the country, EORs can help organizations overcome these legal concerns, achieving and maintaining compliance with local legislation.

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The Fintech Industry is Never Out of Reach With Africa HR

Knowing and understanding the formal and unspoken rules of the country you are expanding to is crucial to your success as a FinTech company in Africa. Africa HR Solutions has considerable experience helping FinTechs flourish in Africa.

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Grant Geraghty is the longest-serving member of the Africa HR team. This resident subject matter expert and client champion is responsible for gaining a deep understanding of our clients’ unique HR needs in Africa and providing tailored solutions that align with their business objectives. Grant collaborates closely with our clients to ensure that their requirements are properly implemented, providing ongoing support and guidance throughout the process.

Grant brings a wealth of experience to his role, having served as Africa HR’s longest-serving employee. He holds a Bachelor of Commerce degree, with a major in Economics and Business Finance, from the University of Natal in South Africa. Additionally, he has completed a certification program in Payroll and Tax Administration from the University of Cape Town, further enhancing his expertise in HR operations and compliance.

His commitment to delivering exceptional service and his extensive knowledge of HR in Africa make him an invaluable member of the Africa HR team.




Kevina Takoordyal has a BA Hons Business Management from the University of Glamorgan, UK, with MBA in leadership and Innovation, MBA General, PMP Certified, and Agile Scrum Master. She currently works as the Head of Operations at Africa HR Solutions Ltd with more than 20 years of proven leadership capabilities in Operations, Business Development, People Management, Process Optimization, and Project Management in the Financial Services, BPO, Banking Industry, and Heath Care Industry. In Senior leadership roles with an international footprint across Europe working and extensive Pan- African experience from a compliance, finance, and operations angle, Kevina comes across with a panoply of cross-functional skills. Kevina also serves on a few Boards, Non-Independent Executive at MioD and for NGOs on a voluntary basis, a coach and mentor to aspiring female leaders across Africa and Mauritius.

Kevina is a firm believer in Servant Leadership with a strong focus and commitment to uplifting others, with the ability to deliver through a highly engaged – diverse team, and works towards consistently synergistic value creation. While being a focused and adaptive thinker and Kevina is actively participating in panel discussions on Innovation, CX, Digital transformation.

Kevina serves as Project Assessor for the National Youth upskilling program. She has been recognized as Global Talent in a few companies, Ceridian, and International SOS Ltd whereby she has been awarded a few scholarships and had the opportunity to be mentored by Senior Vice President in the US. Award Winner in various fields and at a national level and recognized including Super Achiever Leader Award in Africa in 2016, Awarded Africa Women Leader 2018.



Head of Finance & Business Support

Viloshna is an experienced finance professional with 18 years of expertise in strategic financial planning, financial analysis, cash flow management, systems and controls implementation, financial reporting, and continuous process improvements. She currently serves as Head of Finance & Business Support, where she has successfully automated and leveraged the financial reporting system capabilities to ensure efficient company operations.

Viloshna’s background includes senior roles in a multinational pharmaceutical company and a large listed Mauritian conglomerate. Her meticulous attention to detail and strategic thinking have streamlined financial processes, making her a valuable addition to any finance team. Viloshna is a qualified finance professional with an FCCA qualification and an MBA, bringing valuable expertise to any organization.

In her current role, Viloshna leads the company’s Treasury and Payments function, including the fulfillment of the company’s cross-border payments into Africa. With her strong educational background and extensive experience, Viloshna consistently demonstrates her ability to optimize financial operations, minimize risks, and improve profitability. Her expertise in financial reporting and process improvements make her a valuable asset to any organization.



Head of Legal & Compliance

A qualified lawyer who joined Africa HR Solutions in July 2020, Mark Du Preez has experience working in private practice for a reputable law firm in South Africa. He also played commercially focused roles at a leading private bank, wealth management company, and outsourcing firm in South Africa and Mauritius.

Mark has played a pivotal role in Africa HR Solution’s risk mitigation strategy, which positively impacted P&L performance over the years.

He currently leads the Partnerships function of the company including relationships and oversight with in-country partners (ICPs) across Africa.

Alex Daruty - Africa HR Team


Head of Commercial

Alex has more than 15 years of experience in the global, strategic development of both enterprise and consumer brands in categories including technology, transport, enterprise software, entertainment, and travel.

With experience in roles on both agency and corporate side, he has worked across international brands and has led the development and execution of multi-discipline campaigns across EMEA, NORAM and Asia Pacific.

His focus is on driving meaningful business impact through brand differentiation and building high-functioning, digitally oriented, and analytically driven capabilities. He is motivated by working with, and developing dynamic people, teams, and organizations.

He leads, manages, develops and mentors the Key Account Management department, including line management responsibility for the team of Key Account Managers and Key Account Administrator who represent the Company as the primary communication link between all relevant stakeholders, including clients, third party in-country partners and internal functions.

Originally from Mauritius, he holds bachelor’s degrees in International Business, Finance and Management from the University of Nevada, Reno.