The biennial report from Disrupt Africa, titled Finnovating for Africa, shows that the number of fintech startups in the region has grown by 17.7% in the last two years to 678.

Funding has increased by an even greater rate during the same time period. In the 2021 report, some 277 startups had secured a combined $875m in VC funding. In the last two years, the number of funded ventures has essentially doubled while the amount raised has more than trebled to $2.7bn.

The total funding for fintechs since 2015 amounts to $3.6bn, almost three times more than any other sector in Africa.

However, the report also predicts that 2023 may see the first decline in fintech funding for some time as the market feels the effect of ther global capital shortage.

In terms of regional trends, four countries - Nigeria, Egypt, Kenya and South Africa - dominate the market, accounting for 91.2% of funding. And of these four, Nigeria is far out in front, pulling in more than $1.5bn since 2015.

And in terms of fintech sectors, payments/remittances and lending/financing are leading the funding race, accounting for 81.2% of total funding between 2021 and 2023.

While this represents an increase on the 77% share between 2019 and 2021, there has been a change in the share of that funding with lending now accounting for 38% rather than 15% of VC funding.

“It is clear that African fintech is in its prime, driving forward financial inclusion and powering the commercial revolution occurring on the continent. And investors agree,” said Disrupt Africa co-founder Gabriella Mulligan.