Fintech Africa Report from industry analyst and research firm, McKinsey has named Ghana as one of the fastest growing fintech markets on the continent with an annual growth rate of 15 per cent.
According to the report, currently, the lion’s share value in the market, of approximately 40 per cent was concentrated in South Africa, but moving forward, “the fintech market is expected to grow fastest in Ghana and Francophone West Africa, by 15 per cent and 13 per cent per annum respectively, over the next three years.”
These markets, it said would be followed by Nigeria and Egypt, each with an expected growth rate of 12 per cent per annum over the same period.
Per the report, Kenya still remains one of the biggest fintech markets on the continent, but Ghana is fast catching up with Kenya at that growth rate.
The report said by 2025, Ghana’s fintech market was expected to be valued at US$18.6 billion, growing eight times from 2020.
Kenya is still expected to sit at the top with a value of US$30.3 billion in 2025.
Meanwhile, the Africa average excluding South Africa is expected to be a little over US$11 billion but the estimated penetration of fintech into African market is still quite low at 8 per cent for Ghana, 13 per cent for Kenya, and an average of 5 per cent for the rest of Africa, excluding South Africa.
The report said block chain and crypto currency were expected to lead the pack among the key growth drivers.
“Block chain and crypto currencies are set to grow the fastest, recording a projected compound annual growth rate (CAGR) of 50 per cent from 2020 to 2025. This sector will be followed by payments and digital wallets, both at around 20 per cent CAGR,” the report said.