How African fintech became an engine for global business

"The reality is different, however. The barrier isn't a lack of demand, but the inability of traditional global systems to handle Africa's unique financial landscape. Nearly 400 million African adults remain on the fringes of the formal financial system, yet digital adoption is exploding. The conversation has decisively shifted from basic financial access to a more critical question: How can multinationals efficiently manage their core operations like paying suppliers, collecting revenue, and moving money across borders, in such a complex environment?"

"Global payment giants are built for standardized, mature markets. African fintech companies have grown from basic payment services into essential partners. Their key strength is building the specialized digital backbone that businesses need to operate. The most important work of African fintech isn't consumer-facing. Today, it's happening behind the scenes, where it solves two fundamental problems at once: domestic fragmentation and global isolation."

"Internally, their platforms help large companies easily pay hundreds of suppliers across different African countries at once, in local currencies. Externally, they are building the rails for African businesses to trade with the world. For instance, they provide a secure infrastructure for African merchants to pay or receive payments from a partner in East Asia. This dual capability avoids the delays, high fees, and headaches of old systems, keeping supply chains running smooth."

A persistent operational myth has limited global companies' engagement in Africa, though the real obstacle is mismatched global systems rather than lack of demand. Nearly 400 million African adults remain outside the formal financial system while digital adoption accelerates. The priority has shifted from basic access to enabling multinationals to execute core operations—paying suppliers, collecting revenue, and moving money across borders—within Africa's complex financial landscape. African fintech firms have evolved into essential partners by building specialized digital backbones. These platforms address domestic fragmentation and global isolation by enabling multi-country local-currency payouts and creating rails for international trade. They also support direct transfers to remote recipients and integrate into sectors like agriculture and logistics.

Read at Fast Company