Fintech Investments In Africa and the Power of Innovation

Fintech Investments In Africa

Fintech investments in Africa is generating a lot of buzz this year and attracting a lot of attention from venture capital in South Africa. Part of a global wave of innovation to shape the changing banking needs of the digital consumer, Africa is widely regarded as a hotbed for Fintech innovation and there is little surprise that venture capital firms in Africa are targeting fintech investments as a key growth area.

Since the way people bank and go about their financial lives in Africa is fundamentally different from other parts of the world, the way people innovate needs to be different too. The standout successes of Fintech in Africa and the related Fintech investments in Africa has been needs-driven.

That’s because, in a recent study, the World Bank found that only 34% of Sub-Saharan Africans have a financial account. And with the youngest population in the world, and a penetration rate of 41% in unique mobile subscriptions, it is not surprising that Africa’s “unbanked” are driving Fintech innovation.

According to research done by Penser in the UK, Market forces in Africa are conducive to the growth of fintech.

Fintech investments in Africa

As African Fintech startups successfully garner funding due to their necessity, it is not surprising to see many investors looking for ways to help fund these services and projects. So what are some Fintech innovations that are currently driving the Fintech industry in Africa?

Areas for Fintech Investments in Africa


Since traditional bank infrastructures are weak in Africa, particularly in rural areas, mobile money is becoming the root to driving African Fintech innovation.

Mobile money enables Africans to move from a solely cash-based society to an affordable and obtainable electronic alternative. These innovations allow Africans to upload cash balances to their mobile account, complete payments to third parties, send funds via a peer-to-peer transfer, and much more – all using simple SMS technology.


Many in Africa are still wary though of using mobile money, due to their security. Thus, as mobile money & digital payment options continue to develop, innovations in building advanced technologies to protect these Fintech applications continue to grow.

Some new technologies offer biometric authentication technologies, based on the voice or smart sensors found on the phone – while others offer a two-way, real time communication channel between financial institutions and customers. Communications are safeguarded by encryption, preventing man-in-the-middle or other fraud attacks, ensuring secured transactions between both parties.


Building off of mobile money success, additional advanced mobile payment options have been introduced in Africa in the last decade. From eWallets to QR codes, the Fintech community offers a variety of financial tools to Africa’s unbanked.

Mobile payment apps that can accept payments via QR code, allow simple and quick payment between merchants and the customer. While eWallets allow customers to upload their preferred payment methods to their mobile phone, and simply wave or tap their NFC-enabled phone at the register, in a hassle-free way to pay.


And lastly, digital currencies (or cryptocurrencies) are also taking off in Africa. Since they are practically impossible to counterfeit, and independent of government interference, digital currencies offer a secure method for peer-to-peer transactions.

Bitcoin and other digital currencies hold much promise for Africa, as they are less given to volatile exchange rates and are gaining popularity by merchants as well.

The fin-tech sector in Africa has been a big beneficiary of venture capital in South Africa during the Covid-19 pandemic while other sectors have struggled.

Fintech investments in Africa

Overall, Africans have experienced a lack of financial inclusion for generations. As more companies race to capture the “unbanked” in Africa, more and more fintech opportunities are bound to emerge.

The need for alternative payment methods and security to cater to the unbanked population is finally driving the rapid development of Fintech technologies on the continent, opening the door for a bright future of African financial inclusion. And while it’s clear that traditional banks are trying to own the fintech space locally, the most obvious sign is that most investments are being poured into their innovation hubs and incubators.

,The Caban Group has compiled a significant infrastructure of service providers who support entrepreneurs with access to business finance, support with restructuring, access to grant funding and support in improving cashflow challenges. Our ,Corporate finance team in the UK supports the South African head office to ensure you have the best possible chance of securing the support your business requires. Contact the team at Caban through the contact form on the website or by emailing Info @

Share Post


Recent Post

Get Your Free

Matthew Musgrove

Matthew Musgrove

Matthew is an entrepreneur and business Advisor with a passion for change management and social empowerment. With a background in business accounting and advisory, as well clinical research project management, he strives to find strategic and sustainable solutions to business problems.



Mark Van Hoff comes from background of technical & production planning, budgeting & scheduling of major live events. As the first production co-ordinator at M-NET for Outside Broadcasts, Mark has managed major local and international productions including Miss South Africa, Miss World, multiple music events and major sports events, including the PnP Cycling Tour.​Mark co-founded Van-Man Productions in 1994, Page to Picture in 2000 and Move Media Networks in 2007. All three companies have achieved domestic success and have been well-regarded in the South African production industry.



Oluwaseun Adewuyi who is the Group Chief Finance Officer (CFO) at Caban, is a Certified Chartered Accountant, with Fellowship status at both the ACCA as well as the Institute of Public Finance and Accountancy, a UK Based industry body with a specific focus on the management of charities, not-for-profit organisations and NGOs.. Oluwaseun comes with strong business acumen and 20+ years of progressive experience in finance and operations management within well-reputed and high growth organisations Including Next Plc and Royal Mail. He has been heavily involved in impact investment across Sub-Saharan Africa and has been instrumental in the creation of a series of community schools in West Africa. Throughout his career, he oversaw a broad range of operations, including Business Strategy and Business Reorganisation, summarising the organisation’s financial status, and coordinating the preparation of tactical plans, financial forecasts, and budgets. Adept at developing and implementing effective internal control framework to maintain sound financial accountability.

tim scholtz


Tim Scholtz, who's is the Chief Operating Officer (COO) at Caban Investments, is experienced in implementing corporate governance guidelines, formulating risk management structures, process and cost optimization. Tim has a strong corporate background, having worked as COO at the South African Tourism board, was COO at the Nelson Mandela foundation and as a internal audit manager at Arthur Anderson earlier in his career.

Ben Botes


Ben Botes is Entrepreneur, VC, co-Founder, Author and Academic with a strong social conscience. Ben Involved with early stage and growth firms for the past 20 years and has been Co-founder of 9 separate businesses across Africa. Ben has directly and indirectly been involved in impact investment and the support of charities and non profits for the last 30 years. Ben is a regular speaker at the African Investment Conference in London and has been featured in Wall Street for Europe, The Guardian Small Business, BBC, the Mail and Guardian in the UK and BizCommunity, Channel 3 TV, Investors Weekly, The Cape Times, Radio 702 with John Robbie and Good Hope FM in South Africa

Dave Romero


Dave Romero is a venture capitalist and entrepreneur with a passion for making an impact. A qualified Professional Accountant, Dave has been a director in multiple financial institutions and was once the youngest Chairman on the JSE, in addition to being listed as one of Business Times’ Top 100 companies and the 40th fastest-growing company in South Africa. Dave is a core founder of the Caban Group, which aims to provide a comprehensive service offering to small businesses in return for equity. With a passion for nurturing entrepreneurs, Dave can often be found outside of the boardroom – offering advice, creating innovative funding solutions and building communities through sustainable practices.



Dr Ruben Richards is a truly inspirational South African leader. Through his peace-building seminars for criminal gangs, Dr Ruben has facilitated the longest ceasefire in the history of gang warfare on the Cape Flats. In addition to being Chairman & Founder of the non-profit Ruben Richards Foundation, Dr Ruben is an ordained cleric, company director, non-executive Chairman of Visual International Limited and was once the Deputy Director-General of the now-disbanded Scorpions.