Africa’s financial systems are in the midst of a renaissance. Access to banking varies widely across the continent. According to 2021 World Bank data from 28 countries, only 34.5% of the population over 14 years old had a bank account. But that number doesn’t tell the whole story. Mauritius (89.9%) and South Africa (84.1%) had the highest rates, while Guinea and Sierra Leone (both 13.7%) had the lowest.
Sub-Saharan Africa, in particular, remained a primarily cash economy, due to factors including limited infrastructure and demographic financial exclusion, until the recent growth of mobile banking. Many countries in the region have leapfrogged directly into digital banking in the last 20 years.
The banking and payments landscape is continuing to evolve quickly in Africa. Fintech innovations and a young, dynamic population are driving exciting developments. Based on UN data, “Africa has the youngest population in the world, with 70% of sub-Saharan Africa under the age of 30.” Africa has the opportunity to be a fertile testing ground for new ideas. Savvy companies can leverage the trends already in progress in the region, collecting and using valuable data to pilot products and services that they can later launch in wider markets.
Four Key Trends Reshaping Digital Finance In Africa
1. Rural Representation
For decades, banks had a limited presence outside of major cities in Africa. People living in rural areas were left with few financial services options beyond the cash economy. The rise of savings and credit cooperatives (SACCOs) in African countries such as Kenya, Uganda and Tanzania was a major catalyst in increasing financial inclusion, giving more people access to tools for saving, sending and receiving money.
But the true turning point was the launch of the M-Pesa in Kenya in 2007. This mobile money service transformed how people made payments almost overnight—by 2016, 96% of households in Kenya used it. Mobile money services have significantly improved poverty rates in Kenya and other African countries.
2. Fintech Expansion
Mobile money adoption and usage are continuing to demonstrate rapid growth. A GSMA report showed that, in 2024, there were over 2 billion registered mobile money accounts and over 500 million monthly active accounts. Most new and active accounts originated in Sub-Saharan Africa.
A new wave of fintech startups is evolving to meet demand and offer financial services to previously underserved populations. For example, customers in Nigeria now have access to digital banking, lending and wealth management platforms that have launched in the last few years.
3. Regulatory And Interoperability Gaps
Keeping up with the breakneck pace of tech development has been an ongoing challenge for African governments. My company works with clients across the region, and I see vast differences in regulatory maturity in each country. Each country has its own regulatory environment. When early fintech pioneers came on the scene, many governments didn’t have specific cybersecurity or consumer protection policies in place and have been playing catch-up in real time.
Central bank-driven programs, such as Ghana’s GhIPSS and Nigeria’s NIBSS, are becoming more prevalent as digital payments evolve to be faster and more secure. Yet interoperability is still a major obstacle. Many digital finance systems don’t talk to each other. If you're from Kenya and manage your money with M-Pesa, you can't easily travel to Zimbabwe and switch to the EcoCash service that is popular there. Unlike Visa and Mastercard, which created networks with their own regulations and processes, mobile money remains fragmented across borders.
This interoperability gap creates a huge opportunity for startups that can connect disparate mobile operators throughout the continent. The solutions that emerge must be more affordable and convenient than existing options. They should also work with the Pan-African Payment and Settlement System (PAPSS), a new platform that is backed by 15 central banks and so far integrates with 150 commercial banks.
4. Blockchain Growth
Decentralized finance (DeFi) is changing the financial landscape in Africa. Blockchain-based currencies offer the potential of facilitating cheaper, faster cross-border payments, protecting consumers against inflation and increasing access to comprehensive financial solutions. Nigeria ranked second in a 2024 global cryptocurrency adoption index, and Ethiopia, Kenya and South Africa also placed in the top 30.
Stablecoins, digital currencies that have values pegged to another currency, asset or commodity, are also encouraging economic resilience and global connectivity. In Sub-Saharan Africa, "stablecoins now account for approximately 43% of the region’s total transaction volume." This is an important trade advancement for people who live in countries with underdeveloped banking infrastructure and volatile currencies.
In the past, to buy a product from a supplier that only accepted U.S. dollars, you would have to visit a bank and complete a SWIFT transfer with a currency conversion. Each transaction would entail a fee and take several business days. Now, if a merchant accepts a stablecoin, you can transfer funds directly to their account, instantly converting your local currency to the stablecoin (typically at a lower fee than those offered by traditional banks).
Africa’s transformation from a cash-first economy to an emerging fintech hub is remarkable. We are only scratching the surface of what is possible. As more startups take advantage of these trends, I believe we will witness the start of a new era of financial inclusivity, resilience and innovation—where Africa is at the forefront of global growth.