Rising Africa and her Opportunities

Africa is home to diverse cultures, people, and landscapes, it’s a beautiful continent with over 54 countries today and islands. As of 2021, the estimated population of Africa is around 1.34 billion people. Africa is the world’s second most populous continent after Asia. The population of Africa is expected to continue growing rapidly, with estimates suggesting that it will reach 2.5 billion people by 2050. This means Africa it is for those with vision because there are lots of problems to be solved. The good news is that Africa is adopting technology faster than most other places around the world.

Here, I want to focus on payments in Africa and the emerging companies in this sector. Africa is a continent that has been experiencing rapid economic growth in recent years, with a young and dynamic population that is driving the demand for digital solutions. The payments landscape in Africa is evolving rapidly, with emerging companies leading the charge toward digital payments and financial inclusion.

Why Africa is the Investment Destination

Investing in Africa is a smart move for several reasons. First, Africa has a rapidly growing middle class, which is driving demand for goods and services. This creates a ripe environment for businesses to thrive and succeed. Second, Africa has a young and highly educated population that is eager to learn, innovate and contribute to the economy. This creates a fertile ground for innovation and entrepreneurship. Third, Africa has a vast and diverse natural resource base, which can be leveraged for economic growth and development.

How People can Invest in Africa

Investing in Africa has never been easier. There are several ways you can invest in Africa, including through stocks, bonds, exchange-traded funds (ETFs), mutual funds, and private equity. Investing in Africa through ETFs or mutual funds is an easy way to get exposure to the continent’s rapidly growing economies without having to manage individual stocks. But the focus of this article is investing in startups that building products that are solving real African problems from payment to commerce to health and agriculture and lots more.

Market Size and Potential of Return on Investments

The market size for payments in Africa is huge and growing rapidly. According to a report by McKinsey, Africa’s payment market is expected to reach $500 billion by 2025, up from $200 billion in 2019. This growth is being driven by the increased adoption of mobile and digital payments, as well as a push for financial inclusion. you can further read this by McKinsey; fintech-in-africa-the-end-of-the-beginning

Investing in Africa has the potential for high returns, but it is not without risks. As with any investment, it is important to do your due diligence and research the companies and markets you are investing in. However, with Africa’s vast potential, investing in payments in Africa can be a smart move for those looking to diversify their portfolio and capture the growth potential of this exciting and dynamic continent.

In conclusion, Africa is a continent that is full of opportunities and potential, especially when it comes to payments and digital solutions. As the payments landscape in Africa continues to evolve, emerging companies are leading the charge toward financial inclusion and digital transformation. Investing in Africa is a smart move for those looking to diversify their portfolio and capture the growth potential of this exciting continent.

Startups with Unicorn Status

Here are some of the African unicorn companies, which are privately held startups with a valuation of at least $1 billion:

  1. Jumia – an e-commerce platform operating in 14 African countries.
  2. Interswitch – a digital payments company providing services in Nigeria and other countries.
  3. Fawry – a digital payments company based in Egypt.
  4. OPay – a mobile payments and ride-hailing platform operating in Nigeria and other countries.
  5. Flutterwave – a digital payments platform operating in Nigeria and other countries.
  6. Chipper Cash – a cross-border payments platform operating in several African countries and the United States.
  7. Twiga Foods – a digital marketplace that connects farmers and food vendors in Kenya.
  8. Yoco – a digital payments company providing services to small businesses in South Africa.
  9. Andela – a talent development and outsourcing company operating in Nigeria, Kenya, Uganda, and Rwanda.
  10. Jumo – a digital finance platform operating in several African countries.

These companies are a testament to the entrepreneurial spirit and potential for growth in Africa’s tech and startup ecosystem.

you want to talk about investing? you can send me an email.