Global Africa: Dealings in Investments, Takeovers, and Alliances
**Headline: African Fintech Landscape Shows Distinct Trends in Nigeria and South Africa**
In the dynamic world of fintech, Nigeria and South Africa continue to make significant strides, each with its unique set of challenges and opportunities.
**Nigeria**
Nigeria remains the leading light in fintech deal volumes and funding value in West Africa, with a total fintech funding of approximately $520 million in 2024. The Nigerian fintech scene has matured, moving away from "growth at all costs" to a focus on sustainable business models, profitability, and solving entrenched challenges.
Notable recent funding rounds in 2025 include Moniepoint's $10 million deal with Visa, Raenest's $11 million multi-continent round, and LEMFI's significant $53 million raise. Moniepoint is also expanding its horizons via acquisitions, such as its purchase of 78% of Kenya's Sumac Microfinance Bank, which provides regulatory access and an established customer base in Kenya.
Despite some early-stage funding challenges, the fintech sector in Nigeria has demonstrated resilience, with many Series A startups achieving gross margins above 50%.
**South Africa**
South Africa forms the core of the Southern African fintech market, with about $459 million in fintech funding in 2024. However, the region has experienced a notable decline in funding and limited growth momentum compared to previous years.
Investor sentiment in South Africa is cautious due to historical weak liquidity, a credibility gap concerning fintech transparency and regulatory compliance, and conservative investor behavior following underwhelming IPO performances in the sector.
Investments tend to be more targeted and smaller-scale compared to Nigeria’s more vibrant and voluminous deal flow.
**Regional Comparison Summary**
|Country |2024 Fintech Funding |Key Strengths |Challenges | |--------------|---------------------|-----------------------------------------------|-----------------------------------------| |Nigeria |$520M |Highest deal volumes, dynamic fintech scene |Regulatory inconsistencies, infrastructure gaps[2][1]| |South Africa |$459M |Established financial systems, regulatory framework|Declining funding, cautious investor sentiment[2] |
**Notable Developments**
- In South Africa, Deutsche Bank turned to Silverflow for the launch of its European cloud-native payments platform. Lesaka Technologies has agreed to acquire Bank Zero Mutual Bank, and post-acquisition, Michael Jordaan (Chairman) and Yatin Narsai (CEO) will join the Lesaka Board of Directors.
- In Nigeria, BAS Group has acquired a majority stake in Zuvy, a Nigerian fintech company that specializes in invoice financing. The majority stake in Zuvy will enable BAS Group to add uncollateralized lending to its offering.
- Globally, Revolut announced plans to acquire Argentina-based lender Banco Cetelem from BNP Paribas, and TransUnion has secured a minority investment in South Africa-based fintech Omnisient.
These trends reflect a maturing African fintech landscape where sustainable business strategies and regulatory adaptability will be key to attracting continued investment and facilitating growth.
In the evolving African fintech landscape, open banking technology is playing a significant role in Nigeria, as evident in Moniepoint's Visa deal and LEMFI's substantial funding, which are indicators of the expanding use of technology in the sector. On the other hand, South Africa is also leveraging technology, particularly in the instance of Deutsche Bank's collaboration with Silverflow for cloud-native payments, showcasing the growing potential of fintech technology in the regional market.
