(Agence Ecofin) – While fintech transactions fell by 8% worldwide in 2022, Africa was the only continent to have recorded a 25% growth in its fintech transactions, according to a report by the platform CB Insights.
Africa is the only major region in the world where fintech deals increased in 2022. These deals reached 227 deals, a 25% year-on-year increase. And yet, worldwide, deals won by technology companies focused on financial services are down 8% from 2021.
Within the other major regions of North and South America, Asia and Europe, fintech transactions declined in 2022 compared to their 2021 level. In its report “State of Fintech 2022” published Wednesday, January 18, the CB Insights platform justifies the increase in transactions within African fintechs by the breakthrough of the internet and mobile telephony on the continent.
« In Africa, the deployment of fintech solutions has exploded as access to technology such as the internet and mobile phones has increased said Anisha Kothapa, principal fintech analyst at CB Insights.
By increasing the number of their transactions in African fintechs, investors, local and foreign, have invested more in fintech start-ups, with smaller amounts. Thus, 89% of fintech operations carried out in 2022 in Africa were in companies in the start-up phase. For CB Insights, it is ” a five-year record for the continent and the highest among any other region “, we read in the document.
Beyond fintech transactions, it should be noted that the overall amount raised by these companies worldwide also fell by 46%, to reach $75.2 billion in 2022. In Africa, fintechs raised $1.8 billion $ in 2022, an amount down 28% compared to the $2.5 billion obtained in 2021.
In the United States, funding for fintechs in 2022 has decreased by 50% to $32.8 billion. Even the number of unicorns (company valued at over $1 billion) in the fintech sector has dropped in 2022. Only 69 unicorns have been listed worldwide, a decrease of 58% compared to the 166 unicorns counted in 2021 .
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