A decade ago, Africa’s fintech revolution began as a response to one of the continent’s most persistent challenges: access to finance.
In 2011, only 23% of people in sub-Saharan Africa had access to formal financial services, according to the World Bank.
The launch of M-PESA in Kenya marked a turning point, proving that mobile technology could leapfrog traditional banking barriers.
By enabling millions to send and receive money using basic feature phones, M-PESA laid the foundation for a continental digital finance revolution.
As mobile penetration surged, surpassing 500 million unique subscribers by 2022 (GSMA), fintech startups began filling the gaps left by legacy financial systems.
Players like Paga (Nigeria), EcoCash (Zimbabwe), and MTN MoMo (across West and Central Africa) digitised cash transactions.
They created the infrastructure for peer-to-peer payments, microloans, and savings.
In Uganda, the transformation has been equally profound. MTN MoMo and Airtel Money process billions in transactions annually, supporting everything from school fees and utilities to micro-insurance.
Homegrown startups such as Numida (digital working capital for SMEs) and Eversend (multi-currency e-wallet) have extended fintech’s reach beyond cities.
Today, mobile money penetration exceeds 60% of Uganda’s adult population, according to the Bank of Uganda.
Scaling innovation
Between 2018 and 2022, African fintech funding grew by over 1,200% (Disrupt Africa, 2023), making it the continent’s fastest-growing startup sector.
Once dominated by payments, fintech now encompasses neo-banks, credit platforms, insurtechs, and cross-border remittance systems.
The ecosystem is evolving from inclusion to transformation. Companies like Flutterwave and Chipper Cash simplify regional transactions.
While TymeBank (South Africa) and Wave (Senegal) show that digital-only banking can scale profitably.
In Uganda, innovation is thriving. Platforms like Yo! Payments, Ensibuuko, and XENO Investment are digitising savings groups, enabling e-commerce, and lowering barriers to investment.
Fintech is no longer just about convenience; it has become the growth infrastructure powering trade, small business finance, and household resilience.
This progress is supported by policy innovation. The National Payment Systems Act (2020) created a structured regulatory framework, while regional initiatives like AfCFTA and Smart Africa’s Digital Strategy are paving the way for interoperable, cross-border digital finance.
Dr Tumubweinee Twinemanzi, the Executive Director of Supervision, Bank of Uganda, said the National Payment Systems Act aimed to “bring clarity to a fast-moving sector while ensuring that innovation remains a driver of inclusion.”
Building guardrails for growth
But with rapid expansion comes the challenge of balance, innovation versus regulation.
Across Africa, regulators are catching up. Nigeria’s crackdown on unregulated digital lenders, Kenya’s licensing of over 400 digital credit providers, and South Africa’s regulatory sandbox mark a shift toward responsible innovation.
Uganda has also taken decisive steps. Bank of Uganda’s National Payment Systems Act (2020) formally licensed fintechs like MTN MoMo and Airtel Money, strengthening oversight and consumer protection.
Complementing this, the Data Protection and Privacy Act (2019) and the creation of the Personal Data Protection Office signaled a new era of trust and accountability.
As MTN CEO Sylvia Mulinge notes, “Our success is not in the number of products we produce, but in whether our ‘why’ connects with the people we serve.”
That sentiment is echoed by MTN MoMo CEO Richard Yego, who adds: “If customers can carry on with their day because they have MoMo, then we know we’ve done our job.”
Letters to My Younger Self: Robinah Siima — “Success Is Quieter, But Richer”Still, regional regulation remains fragmented. Fintechs expanding across borders face multiple licensing regimes, raising costs and slowing growth.
This is why leaders like Sitoyo Lopokoiyit, CEO of M-PESA Africa, advocate for harmonised frameworks.
“We need to leverage each other’s technology, and more importantly, each other’s licenses.”
Africa’s fintech future
Africa’s fintech story is now entering its architecture phase, building systems that sustain impact, scale responsibly, and create real economic value.
For Sitoyo, M-PESA’s evolution captures this journey: from money transfers to a digital ecosystem serving governments, small businesses, and households.
“Innovation only makes sense,” he says, “when it starts with a clear understanding of what problem we are trying to solve, and why.”
This philosophy has driven M-PESA to open its APIs to over 120,000 developers, with nearly 40% of traffic now generated by external innovations.
Uganda’s MoMo Open API is following suit, empowering local developers to build school fees platforms, lending tools, and SACCO systems, turning mobile money infrastructure into a shared innovation backbone.
Africa’s next fintech chapter will be written by its youth, digital natives who save, invest, and transact entirely online.
As Sitoyo reminds his team: “Don’t build products for people like yourself. Build for young people. They are the future of finance.”
Leading by design
For Mulinge, leadership in fintech must be intentional. “We have to live by design, not by default,” she says.
Her goal is to turn MTN into a full-fledged tech company built around purpose, not product count.
She believes meaningful innovation begins with understanding the digital native consumer, one who expects real-time, seamless, and trustworthy experiences.
“Design your business, design your innovation, think ecosystem,” she urges.
That mindset, she adds, must extend to regulator collaboration. Regulators are no longer referees; they are partners in progress.
“We must help them build foresight,” Mulinge explains. “If fintechs ignore customer pain points today, they invite regulation tomorrow.”
Trust: Africa’s new currency
Ultimately, trust will define Africa’s fintech destiny.
As Yego puts it: “What we are all selling is trust.” At MTN MoMo, this means ISO 27001 certification, consumer education, and strict data security protocols.
“Technology is only half the battle,” he says. “People must be aware and vigilant. When fraud rises, inclusion stalls.”
Trust, then, is not a by-product of fintech; it is its foundation. Without it, no amount of funding, innovation, or regulation can sustain digital finance.
Africa has already proven it can leapfrog barriers. The next frontier is ensuring that the systems it builds are safe, transparent, and human-centered.
“It’s not the speed of technology that defines Africa’s digital future — it’s the strength of the confidence that binds people to it,” Yego concludes.
