According to the Banking on Innovation report by Briter Intelligence and Lateral Frontiers, fintech firms in Egypt, Kenya, and Nigeria collectively raised more than $6.5 billion in the last decade.

This shows a shift from rapid expansion to sustainable, partnership-driven growth.

The report found that Nigeria alone attracted over $3 billion, led by major payment startups such as Paystack, Flutterwave, and Moniepoint, while Kenya’s fintech ecosystem secured around $2 billion, largely in digital credit and asset finance. 

Egypt’s fintech sector, now the country’s most funded, amassed $1.68 billion, driven by players like Fawry, Khazna, Paymob, and MNT-Halan.

What stands out is how collaboration, rather than disruption, is now bolstering Africa’s financial inclusion. In Egypt, Banque Misr’s partnership with valU has expanded Buy Now, Pay Later (BNPL) services to underbanked groups, modernising consumer credit in a country where cash remains dominant. 

In Kenya, Citi’s alliance with Visa and Cellulant created Citi Optimised Pay, tackling a $25 billion SME financing gap by allowing small suppliers to access instant payments. And in Nigeria, Paystack’s integration with leading banks has enhanced merchant transactions, a success so notable that Stripe’s $200 million acquisition of Paystack became a model for fintech-bank synergy across the region.

Across these economies, central banks are taking a more active role. Egypt’s Digital Wallet Interoperability Regulation and the Meeza national payments network, Kenya’s Digital Credit Provider laws, and Nigeria’s Open Banking Framework (2023) reveal a coordinated regulatory initiative to encourage innovation while maintaining consumer protection. 

Samakab Hashi, partner at Lateral Frontiers, noted, “Policymakers are no longer passive observers. They are actively shaping the future, using sandboxes, tiered licensing, and data protection mandates to balance innovation with stability.”

The research stresses that over one-third of all venture funding in Africa since 2014 has gone to fintech, now the continent’s most dynamic technology sector. 

However, the focus is now changing direction. Rather than chasing payment volumes, investors and founders are turning toward credit infrastructure, embedded finance, and insurtech, sectors with deeper, long-term impact.

On challenges, the report warns that issues around data governance, regulatory inconsistency, and compliance costs threaten progress. 

Nigeria’s resolutions on unlicensed digital lenders and Egypt’s limits on data sharing have slowed expansion for some startups. Still, fintechs are adapting through strategic partnerships, early engagement with regulators, and a stronger focus on cybersecurity and user trust.

For founders, the report recommends building before licensing, forming smart alliances, and focusing on infrastructure rather than duplication. In Egypt, the opportunity lies in e-KYC and Banking-as-a-Service; in Kenya, agricultural and SME credit tools; in Nigeria, open banking-based embedded finance.

Even with global venture slowdowns, African fintechs are standing on resilience and reinvention. Egypt’s steady growth, Kenya’s ecosystem maturity, and Nigeria’s scale show that the continent’s financial sector must continually focus on collaboration among banks, telcos, and innovators working together to bridge access and trust.

Disruption and the ability to collaborate, adapt, and build inclusive systems that leave no one behind, are highly indispensable among African fintechs and others.

The funding round was co-led by Lateral Frontiers and E4E Africa, with participation from Catalyst Fund, Launch Africa, Fondation Botnar, and Renew Capital. 

In addition to the equity funding, Octavia secured $1.1 million through advanced sales of carbon credits, pointing to the growing market interest in sustainable carbon capture solutions.

Founded by Martin Freimüller and Duncan Kariuki, Octavia Carbon is the first DAC company in the Global South. The startup aims to leverage Kenya’s abundant geothermal energy and favourable geology to make carbon capture more cost-effective. 

Octavia’s current operations include two carbon capture devices with a total capacity of 50 tonnes annually, but the company plans to increase this to 1,500 tonnes per year by 2025. This expansion will coincide with the launch of a carbon storage site operated by its partner, Cella Mineral Storage.

One of the major factors behind Octavia’s decision to establish operations in Kenya is the country’s unique geological landscape. The East African Rift Valley contains basaltic rocks that naturally react with CO2 to form stable carbonate minerals, such as limestone, enabling long-term carbon storage. 

Kenya’s renewable energy resources, particularly geothermal power, are also powering the DAC process in an environmentally friendly and cost-efficient manner.

Freimüller noted that Kenya’s geological and energy advantages are essential to the company’s mission, stating, “The capacity of Kenya’s Rift Valley is enormous—large enough to hold all of humanity’s cumulative CO2 emissions.”

Octavia’s goals are set to make the country a hub for cost-effective carbon removal, a necessary step in tackling the global climate issue.

Octavia Carbon has quickly established a strong reputation, becoming a finalist in the Xprize Carbon Removal competition. 

The startup has also secured major clients, including the Danish carbon removal marketplace Klimate, and is offering DAC and storage carbon credits as part of its revenue model. 

The global DAC industry is growing with over 130 facilities in development aiming to capture 65 million tonnes of CO2 annually by 2030. Octavia Carbon is boosting the movement towards net-zero emissions by 2050.