This increase is fueled by demographic growth and growing mobile money and smartphone penetration rates.The continent's average fintech penetration rate is expected to jump from 5.3% in 2023 to 15% by 2028.  African fintechs have faced a tough operating environment over the past two years, with a combination of macroeconomic challenges and a decline in venture capital investment, compounded by rising living costs, slowing economic growth, high interest rates, and rapid currency devaluations. From 2024 onwards, startups in this category have raised a total of $419 million, a decline of over 50% compared to the same period in 2023.The fintech sector has seen a significant decline in investment, largely due to a decrease in equity funding. African fintech startups experienced a 36% decline in funding in 2023.  Furthermore, according to the report, approximately 38% of African developers work for at least one startup whose headquarters is located outside of Africa, and more than 80% of fintech leaders face difficulties in hiring technological talent on the continent.Africa has emerged as a hotspot for online fraud, creating a significant obstacle for fintech companies. The financial losses resulting from cybercrime in Africa in 2021 were estimated to be over $5 billion.   The report also highlights that to shape the future of Africa's fintech industry, it will be necessary to forge new partnerships between fintechs, banks, and economic operators, accelerate product innovation, and explore underutilized opportunities.

 Christelle koambi