More African fintech IPOs expected on local stock exchanges

Key Takeaways

The burgeoning fintech industry in Africa is driven by the continent's rapidly growing population, particularly its tech-savvy youth, who are seeking alternatives to the region's traditional financial systems. Startups like Flutterwave, Chipper Cash, and Interswitch have emerged as key players in this evolving landscape, with some considering listings on foreign exchanges such as the UK or US. However, there are notable advantages to listing domestically for African fintech firms. Local exchanges offer access to investors who are more familiar with the companies and their operating environments, potentially leading to better valuations and investor support. Listing requirements on domestic exchanges are also often less stringent compared to foreign markets, providing a more accessible avenue for companies to go public. Several African fintech companies have already chosen to list on local exchanges, showcasing the growing maturity and attractiveness of these markets. Examples include E-Finance for Digital & Financial Investments and Fawry for Banking & Payment Technology Services SAE in Egypt, High Payment Systems SA in Morocco, e-Tranzact International Plc in Nigeria, and Lesaka Technologies Inc. in South Africa. These listings not only provide capital for expansion but also serve as milestones for the African fintech ecosystem's development and international visibility.