The growth of Africa’s fintech sector is attracting a new kind of capital: local capital. The 2025 Industry Trends Report indicates that African venture capitalists are “set to dominate fintech investment as global players shift their focus inward”. This trend signals a maturing of the African venture capital landscape, with well-funded growth-stage startups acquiring smaller fintechs to expand their offerings and diversify revenue streams. The shift from external to internal capital is a powerful move toward localizing innovation and ensuring that funding decisions are guided by market-specific needs.
This new funding reality puts greater pressure on startups to demonstrate profitability, not just scalability. As a result, fewer companies will secure funding, and those that do will encounter longer runways, lower valuations, and revised milestone expectations. However, this trend is leading to smarter, more strategic investments that are rooted in the continent’s own ecosystem. The report also notes that global trends, such as AI, will continue to shape Africa’s fintech landscape, but with a more localized and market-specific approach, a trend that is already being seen in the development of AI hubs and local language partnerships. This trend highlights the increasing maturity of Africa’s financial landscape and its ability to fund its own development, a crucial step toward building a more resilient and self-sufficient economic future.
