Minnesota entrepreneur Garad Nor launched his first Africa-focused money transfer business in 1993. Decades later, Garad Nor leads two of the highest-grossing money transfer firms based in Minneapolis—Banana Pay and Tawakal Express. Much of this success can be attributed to the firm’s embrace of mobile money and other advances in financial technologies (fintech).
In many developing African nations, fintech financial products are the first type of banking system that is accessible to the majority of the population. For this reason, fintech startups have attracted the interest of local and international private equity investors. In 2017, a third of all capital invested in African startups went to companies in the fintech sector.
A strong fintech market also supports the growth of other aspects of the African tech industry. For example, the feasibility of widespread adoption of mobile money increases when a robust, secure, and reliable cloud computing network is in place.
As a result, investors are funding systems that support fintech infrastructure such as card readers and point-of-sale systems for small businesses. Additionally, as fintech becomes more commonplace, consumers will demand better service, which also drives innovation within the market.
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