FT News Briefing Financial technology start-ups in Africa
Aug 13, 2021
The podcast explores the dynamic rise of financial technology start-ups in Africa, spurred by changing consumer banking habits amid the pandemic. Experts highlight the challenges of securing local investment against a backdrop of cash reliance. It discusses the impact of lockdowns on informal markets and how electronic transfers are reshaping operations. Additionally, the conversation emphasizes the importance of nurturing local capital to inspire future entrepreneurs and drive economic change.
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Data Theft by Employees
- Departing employees are increasingly stealing sensitive company data, including source code.
- This "insider threat" has tripled in the last quarter compared to the previous year, according to Code42.
African FinTech Growth
- African FinTech startups are booming, driven by increased smartphone use and regulations promoting financial inclusion.
- However, growth concentrates in Nigeria, South Africa, Kenya, Egypt, and Ghana, highlighting regional disparities.
Foreign Investment Dominance
- Most successful African startups rely on foreign investment due to a lack of local venture capital and risk aversion among wealthy Africans.
- This dependence on foreign capital raises concerns about future African ownership and economic transformation.