A recent report by Boston Consulting Group (BCG) and Elevandi, titled Unlocking the FinTech Potential in Africa, highlights a critical talent shortage impacting African technology sectors, including fintech. The report emphasizes that Africa is losing top tech talent overseas due to attractive salaries abroad and struggling to recruit foreign talent because of stringent visa processes and lower liveability scores.
According to the report, Africa’s tech talent pool is currently insufficient to meet growing demand, with the continent’s educational systems likely to supply only 50 percent of the skilled workforce needed. Retaining and developing local tech talent, alongside attracting international expertise, is essential to reversing this trend. The report noted that while fintech startups have made impressive strides in the early stages of development—driven by founders and local talent committed to economic growth—the current talent gap threatens future scalability.
To bridge the skills gap, the report suggests exploring innovative solutions, such as generative AI, which could ease the talent burden by offering support with coding, automatic translation, and market analysis. Additionally, Nigeria recently announced a major initiative to train three million people in tech skills, aiming to strengthen its talent pipeline and curb talent migration.
The fintech sector has expanded rapidly in Africa, with nearly half of the 1,000 existing fintech companies founded within the last six years. Since 2000, these firms have collectively raised about $6 billion in equity financing, yet most remain in early-stage development; 80 percent of investments since 2018 have been at seed or angel-level funding.
The Executive Director of Elevandi, Pat Patel, observed that Africa’s fintech ecosystem is increasingly attracting new entrants who see opportunities in underserved markets. However, for long-term growth, fintechs need the ability to scale across borders rather than operate in isolated markets. Currently, only 4 percent of African fintechs have reached series C funding or beyond, compared to an 11 percent global average.
Key markets driving fintech growth include South Africa, Nigeria, Kenya, and Egypt, which together host 63 percent of all African fintechs and receive nearly 80 percent of total funding. Despite this concentration, fintech expansion across the continent is challenged by high costs and varying regulatory frameworks across jurisdictions.
Caio Anteghini, a partner at BCG Johannesburg, noted the transformative impact of fintech on financial inclusion and economic growth within African countries. He suggested that further development of digital infrastructure and harmonized policies could enable fintechs to expand their reach and benefit more people across Africa. The report ultimately underscores the importance of policy support, talent development, and regional cooperation to ensure Africa’s fintech sector can continue to thrive and scale sustainably.
