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PalmPay, an Africa-focused fintech firm, is calling on fintech founders across the continent to strengthen investor confidence to attract increased foreign direct investment (FDI). At the recently concluded 2024 Nigeria Fintech Week in Lagos, PalmPay emphasized the importance of fostering close relationships with investors to build lasting value in the fintech ecosystem.
Speaking at the event, Chika Nwosu, Managing Director of PalmPay Nigeria, remarked, “Africa’s fintech ecosystem is far from saturated, but founders must prioritize building investor confidence, especially in light of currency devaluation and rising interest rates.”
Nwosu highlighted the recent devaluation trends across sub-Saharan African currencies—including the Egyptian pound, Naira, Rand, Cedi, Congolese franc, and Kenyan shilling—that have impacted investment value and hampered fintech startups’ ability to secure funding. Addressing these challenges, he urged fintech founders to diversify revenue streams and expand into new geographical markets to spread risks and mitigate the impact of economic fluctuations.
“By entering multiple markets, fintechs can reduce the risk of instability in any one region,” Nwosu explained, citing PalmPay’s expansion beyond Nigeria to include operations in Tanzania, Ghana, and other markets.
Under the theme, “Positioning Africa’s Fintech Ecosystem to Accelerate Growth,” the 2024 Nigeria Fintech Week assembled industry leaders, investors, policymakers, and innovators to outline the future of Africa’s fintech landscape, with a special emphasis on securing long-term investment.
Ade Bajomo, President of FintechNGR, noted the recent decline in fintech investments across Africa, reporting a 77% drop in funding to $186 million from $826 million year-on-year for the first half of 2024. Deal numbers fell by 30%, with average deal sizes decreasing from $10.5 million in H1 2023 to $4 million in H1 2024. Despite these challenges, Bajomo expressed optimism, pointing to significant growth opportunities across the continent’s fintech sector.
Panelists also emphasized the importance of regular engagement with policymakers and regulators to keep founders informed on regulatory shifts that may affect the fintech landscape.
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