African fintech continued its impressive growth in 2025, attracting $1.4 billion in funding across 224 deals. This demonstrates continued investor confidence in our continent’s digital financial solutions. While the overall figure is encouraging, a deeper look reveals a concentration of capital, with five companies securing 43% of the total funding. This trend raises questions about access to capital for the broader ecosystem of innovative startups across Africa.

Funding Concentration: The Top Five Dominate

Analysis shows that a small number of fintechs significantly benefited from investment in 2025. These five companies collectively raised approximately $602 million, leaving $798 million distributed among the remaining 196 companies. This highlights the challenges faced by early-stage startups in securing substantial funding, often relying on smaller seed rounds or angel investors. We’ve seen this pattern before, mirroring the early days of mobile money where M-Pesa initially dominated, but eventually paved the way for a diverse range of players.

A Sector Still Attracting Significant Investment

Despite the concentration, $1.4 billion represents a substantial inflow of capital into the African fintech sector. This funding is crucial for driving innovation in areas like mobile payments, lending, and insurance – solutions vital for financial inclusion across our diverse economies. The 224 deals completed in 2025 indicate a healthy level of activity, suggesting continued interest from both local and international investors. Firms like TLcom, Partech, and Norrsken are increasingly active, but more needs to be done to broaden the investor base.

The Need for Diversified Funding Sources

The dominance of a few players underscores the need for more diversified funding sources. Many promising fintechs, particularly those focused on serving underserved communities, struggle to attract the attention of venture capitalists. We need to see more angel networks, corporate venture capital, and government initiatives designed to support early-stage companies. This will ensure that innovation isn’t limited to a select few, but flourishes across the entire ecosystem.

Building Africa’s Fintech Future Through Inclusive Funding

Looking ahead to 2027, we anticipate continued growth in African fintech, but this growth must be inclusive. The focus should be on creating a more level playing field, where all innovators have access to the capital they need to scale. By fostering a more diverse funding landscape, we can unlock the full potential of our entrepreneurs and build a truly transformative fintech sector that benefits all Africans, from Lagos to Nairobi and beyond.