Fintech in Africa remains one of the continent’s most vibrant and rapidly changing sectors. Over 1,000 fintech companies are active in key markets such as Nigeria, Kenya, South Africa, Egypt, and Ghana. Africa’s fintech market is projected to reach $65 billion in annual revenues by 2030, growing at a compound annual growth rate (CAGR) of about 32%.

Nigeria alone had more than 430 fintech businesses and attracted $2 billion in investment in 2024. Yet despite this growth, common mistakes in African fintech continue to slow down progress. Many companies face adoption barriers, weak user research, and limited insight-driven strategies. All of which hinder growth and long-term success.

Fintechs must manage rising inflation, such as Nigeria’s 34.8% rate, as well as volatile exchange rates and tougher regulations. At the same time, new opportunities are emerging in generative AI, digital identity systems, and reforms like Kenya’s Payment Services Act or Nigeria’s open banking regulation.

Learning From Fintech Failures

This report draws on real-world cases of notable fintech shutdowns, including South Africa’s M-Pesa, Zazuu, and KippaPay. These examples reveal common oversights in the African fintech market. Many companies still build products on assumptions rather than research. Others struggle with weak data validation and poor market testing. Faulty pricing models and a lack of attention to sociocultural factors also play a major role in their failure.

How to Avoid Common Mistakes in African Fintech

To build products that not only survive but thrive, fintech companies must:

• Engage deeply with users through continuous context-rich research, before, during and after product development.
• Design for simplicity and inclusivity, including low-income users, informal sector workers, people in rural or low-connectivity areas, women, the elderly, persons with disabilities, and people with low digital literacy, ensuring no one is left behind
• Validate assumptions with real-world pilots and testing, and iterating based on honest user feedback.
• Align business models with the realities of users’ incomes, digital access, and trust networks.
• Establish a clear bridge between user research and business strategy by highlighting insights and using language from user research that resonates with C-suite decision-makers, thus empowering leaders to implement more user-centered processes across the organization.

By avoiding common mistakes in African fintech and building with context, African fintechs can create trusted, relevant solutions that drive onboarding, adoption, and retention, unlocking the vast potential of Nigeria’s digital financial ecosystem.