Fueling Africa's Fintech Growth Through Strategic Partnerships
Africa’s Fintech landscape is rapidly evolving, driven by a dynamic ecosystem and growing investment opportunities. As the continent continues to bridge the financial inclusion gap, strategic partnerships and robust support systems are critical. Visa is at the forefront of this transformation, leveraging its expertise and resources to propel African Fintech startups to the pinnacle of success.
The Dynamic Growth of Fintech in Africa
Nearly half of the ~2,500 Fintechs in Africa have been established in the last six years, underscoring the sector's dynamic nature and its transformative impact on financial services1. This growth is driven by the clear pain points faced by large rural populations often excluded from the financial system and the rapid development of technology. Several African markets, including Nigeria, South Africa, Kenya, Egypt, Ghana, Morocco, Senegal, Tanzania, Uganda, Cameroon, and Côte d'Ivoire, are experiencing significant Fintech advancements. These markets collectively account for a substantial portion of Africa's GDP and population, making them central to the continent's Fintech evolution.
Innovative Collaborations Driving Progress
In the diverse and expansive markets of Africa, partnerships have become the cornerstone of Fintech growth. Collaborative efforts between Fintech companies, established financial institutions, and technology providers are unlocking new opportunities and addressing unique local challenges.
Among these, Visa's strategic alliances stand out for their significant impact and innovation. By joining forces with local and regional players, Visa is enhancing the digital payment infrastructure, expanding financial services, and fostering innovation.
For example, Visa's collaboration with Chipper Cash, one of the largest virtual cards issuers in Africa, is driving card issuance and accelerating the availability of digital financial services for millions of people across the continent. With Djamo, a Côte d'Ivoire-based Fintech, 2 million Visa debit cards have been issued in 18 months, allowing users to get a card within 48 hours with no monthly fees or overdraft charges.
Through Visa’s partnership with Panelys, we are helping cocoa and coffee farmers in Côte d’Ivoire access financial services and education. This special program, launched in collaboration with the Ministry of Agriculture, has issued nearly 1 million digital payment cards to farmers, enhancing their financial literacy and economic stability.
Visa’s Commitment to Supporting Fintech in Africa
Visa has implemented several pivotal programs aimed at accelerating fintech growth and integration. The Visa Fast Track Program is designed to support early-stage fintechs by expediting the process of integrating with Visa, enabling them to leverage Visa's extensive reach, capabilities, and the security of VisaNet—our global payment network.
The Visa Ready to Launch initiative commenced two years ago in CEMEA in partnership with selected payment enablers, offers a first-of-its-kind plug-and-play end-to-end card issuance platform. This platform effectively bundles products and services, enabling fintechs of different sizes and levels of maturity to seamlessly launch new card programs and payment solutions.
Another way Visa partners with fintechs is through the Visa Everywhere Initiative, which is particularly beneficial for early-stage startups looking to gain recognition, build credibility, and secure funding. This program provides a platform for startups to pitch their solutions to Visa executives, potential clients, and investors, offering them exposure and opportunities for collaboration. Since its launch in 2015, the Visa Everywhere Initiative has helped more than 15,000 startups from over 100 countries collectively secure more than $48 billion in funding.
The most recent initiative is the Visa Accelerator Program in Africa, which aims to empower Seed to Series A startups through expertise, connections, technology, and investment. The program enables up to 40 startups each year to accelerate and grow through a three-month intensive learning program focused on business growth and mentoring. Following the program completion, Visa further supports these startups with capital investment in select participating fintechs while accelerating their commercial launch through Visa technology and capabilities.
The rise of Fintech in Africa is a testament to the power of strategic partnerships and innovative support systems. Visa’s proactive approach, through partnerships, substantial investments and development programs such as the Africa Fintech Accelerator, is paving the way for a more inclusive and dynamic financial ecosystem. As Africa continues to embrace digital transformation, Visa’s role in empowering Fintech startups will remain crucial in shaping the continent’s economic future.
Stay current with the latest payments insights from Visa Navigate CEMEA - subscribe today.
All brand names, logos and/or trademarks are the property of their respective owners, are used for identification purposes only, and do not necessarily imply product endorsement or affiliation with Visa.
1BCG: https://www.bcg.com/publications/2023/africa-unlocking-the-Fintech-potential
Share Feedback