From Hubs to Heartlands: How Ecosystem Collaboration Is Unlocking Africa's Fintech Future

Across Africa's diverse economic landscape, a fundamental and exciting shift is taking place. The continent's fintech revolution is maturing from a story of isolated startup success to one of strategic ecosystem collaboration, a transformation experts say is essential for building a financially inclusive future. A new report from EY highlights this evolution, arguing that Africa's fintech future depends on "strong ecosystem architecture rather than isolated innovation" .

By Francis S. Bingandadi Editor

The numbers underscore the sector's significance. Fintech now accounts for nearly half of all startup investments in Africa and is home to eight of the continent's nine unicorns . Yet, with nearly 300 million adults still unbanked, the potential for growth—and the need for foundational systems—remains vast .

The Collaborative Framework Takes Shape
The current phase is defined by formalized partnerships among regulators, banks, telecommunications giants, investors, and startups. This collaborative model is proving more effective than competitive approaches in enabling rapid innovation and cross-border deployment of services .

"Fintech does not thrive in isolation," states the EY report. "It is ecosystems that collaborate, innovate, and rise together that shape Africa’s digital future" .

Regulatory innovation is a critical component of this ecosystem. Countries are moving from restrictive postures to proactive frameworks designed to foster responsible growth.

Kenya introduced a Virtual Asset Service Provider Bill in 2025, creating a legal foundation for digital assets.

Nigeria clarified rules governing crypto assets with its 2025 Securities Act .

South Africa has implemented a comprehensive licensing regime for Crypto Asset Service Providers (CASPs), with 75 institutions approved as of April 2024 .

This regulatory clarity is attracting investment and legitimizing new asset classes. Nigeria ranked as the world's second-biggest adopter of cryptocurrency in 2024, with Ethiopia, Kenya, and South Africa also in the global top 30 .

Country Spotlights: Diverse Models, Common Goals
The ecosystem model is manifesting differently across Africa's key markets, tailored to local needs and infrastructure.

Nigeria: Powering Scale
As Africa's largest economy, Nigeria is the undeniable fintech powerhouse. The country accounted for 28% of Africa's fintech deals in 2024 . Its ecosystem combines a large, tech-savvy population with increasingly refined regulation. This environment has nurtured pan-African giants like Flutterwave and PalmPay, while a new wave of innovators like Klasha (cross-border payments) and Omniretail (B2B commerce) are building the next layer of financial and logistical rails .

Kenya: Mobile Money Maturity
Kenya's leadership in mobile money, anchored by M-Pesa's 61 million daily transactions, provides a mature foundation for deeper innovation . Startups are now building specialized services on top of this infrastructure. For instance, Sevi provides stock-based credit to micro-retailers, while Melanin Kapital is unlocking climate finance for underserved farmers .

South Africa: Targeting Infrastructure Gaps
South Africa's sophisticated financial sector has well-served urban customers, but significant inclusion gaps persist. Fintechs here are increasingly focusing on the infrastructure layer. Companies like Open are developing next-generation, blockchain-driven financial market rails, while others like Zazu are building neobanks specifically for the continent's millions of underserved SMEs .

Key Trends Fueling the Ecosystem
Several interconnected trends are accelerating this collaborative evolution:

The Rise of B2B and Embedded Finance: Beyond consumer apps, companies like Nala and Yellow Card are pivoting to provide critical B2B payment infrastructure for other businesses, embedding finance into broader commerce . Banking-as-a-Service (BaaS) platforms like Miden allow any company to integrate financial services, a model predicted to grow globally .

Open Finance Gains Momentum: Nigeria and South Africa are at the forefront of developing open finance regulations, which mandate secure data sharing between financial institutions with customer consent. This framework is set to unleash a wave of personalized financial products and services .

Cybersecurity as a Shared Priority: With Africa emerging as one of the most targeted regions for cyberattacks, security is a unifying concern for the entire ecosystem. Nigeria alone lost over $500 million to cybercrime in 2022 . This shared threat is driving collaboration on best practices and regulatory frameworks to protect the integrity of the growing digital financial system .

Expansion Beyond Traditional Hubs: Innovation is spreading. Promising startups are emerging from Angola (mobility fintech Anda), Ethiopia (electric vehicles), and Zambia (AI-driven credit), proving that the ecosystem's benefits are becoming pan-continental .

The Road Ahead: Interoperability and Inclusion
EY's report identifies the next frontier: building interoperable infrastructure that allows these national and sectoral ecosystems to connect seamlessly. This includes cross-border payment systems, shared digital identity platforms, and harmonized KYC protocols .

The ultimate goal remains inclusive economic participation. As Joe Mucheru, President of JUMO, notes, "Fintech is redefining financial access across Africa, providing millions previously excluded from formal banking with the tools to save, borrow, and transact with ease" .

The evidence suggests that Africa is no longer merely leapfrogging legacy systems but is actively constructing a new, collaborative model for digital finance—one built on the power of together . The strength of this interconnected ecosystem will likely determine the pace at which the continent's vast unbanked population enters the formal economy and shapes its own financial destiny.