Africa’s fintech ecosystem is entering a new phase of growth. What began as a movement focused on improving financial access through mobile money and digital payments is now evolving into a much broader economic infrastructure that supports the growth of small and medium-sized enterprises (SMEs). Today, fintech platforms are helping African businesses access credit, manage working capital, facilitate cross-border trade, and integrate into regional and global markets more efficiently.
The scale of this transformation is significant. According to the GSMA State of the Industry Report on Mobile Money 2025 , Africa accounted for more than half of the world’s mobile money accounts in 2025 and generated over $1.4 trillion in transaction value. These payment ecosystems are creating vast amounts of financial data, allowing fintech companies to move beyond simple transactions into more advanced financial services such as lending, savings, insurance, and embedded finance solutions. At the same time, Boston Consulting Group (BCG) projects that African fintech revenues could grow from approximately $10 billion today to more than $65 billion by 2030, highlighting the sector’s long-term potential.
The emergence of AI-powered credit rating is one of the most significant advances. Millions of SME owners on the continent still do not have official credit histories, which makes it challenging for them to obtain funding from conventional banks. Fintech companies are filling this vacuum by evaluating creditworthiness using alternative data sources including smartphone usage, mobile money transactions, and payment histories. Some platforms are currently making working capital decisions in less than a minute in nations like Kenya and Nigeria, giving small firms quicker and more accessible access to financing.
The increasing interoperability of payment systems throughout African markets is another significant change. Businesses may send and receive payments more easily thanks to platforms like Onafriq, which link banks, mobile operators, and fintech companies across several nations. It is anticipated that increased interoperability will be crucial for boosting regional trade and lowering obstacles for SMEs doing cross-border business.
In Africa's digital economy, embedded finance is likewise growing in significance. Fintech services are now being integrated directly into platforms that SMEs already use, such as logistics apps, e-commerce marketplaces, and agri-input systems, rather than needing firms to look for financial goods individually. This strategy increases financial inclusion for underprivileged firms while also improving the accessibility and convenience of financial services. As digital usage increases, embedded finance is predicted to continue growing quickly throughout Africa, according to market research highlighted in several industry papers. In addition, B2B fintech platforms are emerging as an important area for SME development. These companies focus on improving supply chain financing, inventory management, and working capital solutions for businesses. Investors are paying closer attention to this segment because of its strong customer retention potential and direct connection to SME productivity and operational efficiency.
Investors need to be mindful of the sector's major structural concerns despite the promising growth prospects. One of the main obstacles is still regulatory fragmentation, since fintech companies have to deal with various financial rules, licensing requirements, and compliance standards in various African countries. Another crucial factor is data quality, especially for AI-driven lending models that could have trouble translating between locations in the absence of specific datasets. Furthermore, SME performance and repayment capacity are still impacted by macroeconomic factors including inflation, currency instability, and high interest rates.
At Oxano Capital, we view African fintech not simply as a technology trend, but as critical economic infrastructure that will support the continent’s next phase of growth. We are particularly interested in businesses that strengthen the financial systems SMEs rely on daily, especially in the areas of credit infrastructure, embedded finance, and B2B financial services. As institutional investors increasingly position themselves within this space, we believe patient and infrastructure-focused capital will play an important role in unlocking long-term value across Africa’s SME ecosystem.