The European Investment Bank (EIB) has revealed that the number of fintechs in Africa tripled between 2020 and 2024, contributing to improved access to finance for individuals and businesses. The technology finance sector, driven by the rapid expansion of digital finance, has grown from 450 companies in 2020 to 1,263 this year, as highlighted in the report “Finance in Africa 2024”.
Thomas Östros, EIB Vice-President, underlined the importance of financial technologies for improving financing and fostering sustainable economic growth on the continent. According to the EIB, fintechs are transforming how finance is conceived in Africa, with a direct impact on increasing financial inclusion.
However, the EIB also drew attention to the challenges that still limit economic growth in Africa, highlighting lending to the private sector, which fell from 56% of Gross Domestic Product (GDP) in 2007 to only 36% in 2022. This decline is seen as an obstacle to the industrialization of the continent and the development of productive economic assets.
The EIB report still reflects the concerns of African banks, with 77% of respondents pointing to the economic situation as their main concern. Other issues highlighted include asset quality (53%) and the effects of climate change (34%).
Source: Forbes África Lusófona
