Foreword Key takeaways
Chapter One: Pressures and Priorities for African Fintech Businesses
Chapter Two: Fintech Expansion and Jurisdictional Choice
Chapter Three: Smart regulation for a thriving fintech future
Foreword
A new generation of business is reshaping the financial services industry in Africa. Whether it be Airtel Money’s plans for a $4 Billion IPO or Nigeria’s Moniepoint achieving unicorn status, fintech businesses are gaining significant momentum across the region, driven by rapid technological advancement and shifting consumer and business expectations. In fact, in 2024 there were 1,250 active companies compared to 450 four years prior1, while African fintech startups raised over $1 billion2 .
A testament to the pace of innovation within Africa, the explosion in fintech reflects the fact that many businesses – and indeed consumers – are leveraging new technology to circumvent the need for legacy financial infrastructure seen in more mature markets. In many cases, this has meant a digital-first approach, rather than investing in traditional bank branch infrastructure, or the implementation of paper-based systems. Kenya, for instance, was an early adopted of mobile payments, with M-Pesa pioneering the technology as early as 2007.
Unlike traditional firms, these businesses are inherently global in their outlook. For them, scaling across borders and delivering innovative products and services quickly is not just a goal, it is a necessity. Yet, their growth ambitions are unfolding in a world marked by geopolitical uncertainty, economic volatility, and evolving regulatory frameworks. Governments and regulators are still grappling with the pace of technological change, producing a patchwork of approaches across key markets. South Africa and Nigeria both saw crypto restrictions lifted in 2022 and 2023 respectively, with licensing rules now in place, while Kenya is preparing a Virtual Asset Service Providers law expected in 2025.
This divergence highlights a fundamental challenge for fast-scaling companies: there is no single global standard. Instead, as fintechs and digital businesses look to grow, they must navigate a fragmented landscape while maintaining their competitive edge.
We previously published our Destination Digital report, a global outlook on the state of play for fintech businesses. However, given the accelerated growth and investment momentum being observed within the African fintech market, and its growing influence, it felt apt to publish a dedicated spotlight on the continent, speaking to over 200 fintech business leaders in Kenya, South Africa and Nigeria. The findings further echo our previous report, making it abundantly clear that International Financial Centers (IFCs) are more critical than ever. For companies seeking the right combination of regulatory clarity, supportive infrastructure, and access to global markets, IFCs provide an essential foundation for growth.
Among these, the British Virgin Islands (BVI) stands out as a long-established leader. For more than four decades, the BVI has enabled international businesses to thrive by offering a supportive tax regime, robust legal and regulatory frameworks, and access to high-quality professional services. Its ability to balance adherence to the highest international standards with an openness to innovation has made it a trusted partner for businesses operating across borders.
1 https://www.cnbcafrica.com/media/6364344632112/ eib-report-fintech-companies-in-africa-triple-in-2024/
2 https://www.ecofinagency.com/finance/1501-46319african-fintech-startups-raised-over-1bn-in-2024
Elise Donovan CEO, BVI Finance
Key takeaways
This snapshot study with African fintech business leaders explores the strategic priorities, challenges, and jurisdictional factors affecting fintech businesses, particularly emphasizing the role of International Financial Centers (IFCs) in facilitating sustainable growth and innovation during a period of rapid transformation.
01 International expansion tops the agenda
96% of African fintech companies view cross-border expansion as crucial or important over the next five years.
02 Tech to drive efficiency
Adopting new technologies to boost efficiency is a priority for 47% of African fintech executives
03 Sanctions and finance top business concerns
Half of business leaders across Kenya, Nigeria and South Africa view economic sanctions and access to finance as the geopolitical trends having the most profound impact on their business.
04 Clarity on regulation key
For 36%, a clear fintech and virtual asset licensing framework is the aspect of regulatory framework most valuable to their business.
05 IFCs already at the heart of fintech
72% of fintech businesses, or entities within them, are already incorporated in an International Finance Center
Pressures and Priorities for African Fintech Businesses
African fintech businesses are rapidly transforming the continent’s financial landscape by leveraging innovative technologies to enhance accessibility and inclusivity. These companies are addressing the unique challenges of the region by providing solutions such as mobile payments, micro-lending, and digital banking services, which are helping to bridge the gap between the unbanked population and financial services. In many cases, this has seen African financial services firms outpace the adoption of newer technology internationally, rather than investing in more costly physical infrastructure or paper-based processes.
Through strategic partnerships and investments, African fintech firms are not only driving economic growth but also fostering a culture of entrepreneurship and financial literacy across the continent. These businesses are at a pivotal juncture, poised to capitalize on global trends while navigating a complex landscape of opportunities and challenges. As part of their growth strategy, a staggering 96% of African fintech companies, compared to the global average of 94%, view cross-border expansion as crucial or important over the next five years. This number likely driven by 54 out of 55 African countries being part of the African Continental Free Trade Agreement (AfCFTA), encouraging cross-border expansion across the continent.
“The relatively unique demographics of Africa mean that there is a young, generally under-banked tech-savvy population. Due to the lack of access to formal banking and cash still being king, the continent is a leading global player in mobile money. According to the FT Partners Fintech Industry Research Paper –FinTech in Africa, A Thriving opportunity (March 2024), Africa is home to nearly half of the world’s mobile money customers.
If you couple the importance of mobile money fintech and digital payment platforms with nagging inflation and other factors leading to Africa States’ currency devaluations and tightening credit markets - resulting in greater forex risk in Africa than in other continents - this creates a unique position and opportunities for fintech in Africa.”
Jeffrey Kirk Managing Partner, Appleby
Country breakdown on business executives who believe cross-border expansion is crucial or important over the next five years
Priorities for business growth
With the adoption of new digital technology so central to the success of an emerging financial services sector in Africa, it remains a top priority at board level. Over the next two years, African fintech firms are set to focus on adopting new technologies to boost efficiency, with 47% indicating this as a top priority. The integration of AI and automation promises to revolutionize operations, streamline processes, and deliver enhanced customer experiences. Additionally, 39% of businesses are committed to developing sustainable finance solutions and ESG initiatives, reflecting a growing awareness of environmental and social governance’s role in long-term success.
Philip Graham, Partner, Harneys: “When it comes to tech integration to boost efficiency, I see fintech firms leveraging cloud, blockchain, and AI to drive scalability and compliance in the dynamic digital assets space. Cloud infrastructure enables rapid scaling by offering flexible and costeffective resources, allowing firms to handle surging transaction volumes and global expansion without heavy capital investment. Blockchain, on the other hand, underpins trust and transparency, critical for decentralized operations, while AI enhances efficiency through automation and data-driven insights. These technologies enable fintechs to process high-velocity transactions and expand cross-border seamlessly. However, compliance must be embedded from the outset to avoid costly rework.”
Improving digital infrastructure and cloud adoption is another priority for over a third (35%) of business leaders. As these businesses scale, robust digital frameworks will be essential for maintaining competitiveness and supporting innovation.
However, security also stays on the mind at times of growth, with 29% planning to bolster their cybersecurity measures, acknowledging the increasing threat of cyber-attacks highlighted by 46% of businesses as a profound geopolitical concern. This is higher than the level of concern seen on average across international markets (40%).
Expanding into new markets and customer segments is also the agenda for over a quarter (27%) of African fintech business executives. This ambition aligns with global trends, as AI-driven financial services and automation (38%) and sustainable finance solutions (26%) are expected to have significant impacts on the industry over the next five years. The burgeoning interest in crypto, regulatory technology (RegTech), and compliance automation also presents avenues for growth and differentiation.
However, the path to achieving these goals is not absent of hurdles. As businesses look to scale, cybersecurity and fraud prevention is a pressing issue. In fact, the latest Nigeria Inter-Bank Settlement System (NIBSS) report found that financial institutions lost 52.26bn naira (US$32m) to fraud in 2024, compared with 11.6bn naira in 20203. It’s therefore understandable that its prevention is a priority for 42% of African fintechs, necessitating comprehensive strategies to protect sensitive data and maintain customer trust.
Compliance also remains critical, with 27% of firms grappling with Anti-Money Laundering (AML) and Know Your Customer (KYC) regulations, as well as evolving regulatory policies.
“While cybersecurity and fraud risks are universal business concerns, they are particularly acute in the digital asset space, where vulnerabilities can have immediate and far-reaching consequences. Businesses in this sector should take a proactive approach - prioritising comprehensive compliance frameworks, investing in cybersecurity infrastructure, and staying attuned to jurisdictional developments.
The BVI, with its inherent legal, economic and structural advantages, ready supply of professional expertise, and its progressive and pragmatic, but responsible approach to digital asset regulation, creates and fosters an innovative yet resilient business environment.
The jurisdiction recognizes, in the same way that successful tech companies do, that to strike the right balance between dynamism and diligence creates the best foundation for sustainable growth and successful expansion.”
Michael J. Killourhy Head of BVI Business & Trust Law Group and Deputy Practice Head, Ogier
3 https://abmagazine.accaglobal.com/global/articles/2025/apr/ business/fraud-follows-fintech.html
Priorities for investment and strategic focus over the next two years for African fintech
leaders
Nigeria
South Africa
Kenya Increasing adoption of new technologies to increase efficiency (for example, AI and automation)
Nigeria
South Africa
Kenya
Fintech Expansion and Jurisdictional Choice
As African fintech businesses increasingly look beyond their home borders to expand, they must choose a jurisdiction that aligns with their strategic goals. There’s a clear goal: scale quickly, access global markets, and adeptly handle intricate regulatory frameworks. These requirements make selecting the right jurisdiction a pivotal decision for a company. Their success frequently depends on their capacity to function effectively across borders.
IFCs: Key players in satisfying incorporation requirements
Within Africa, a significant 72% of fintech businesses, or entities within them, are already incorporated in IFCs, highlighting the importance of cross border transactions and activity. Furthermore, 19% are actively considering it, indicating a strong trend towards international expansion. With 63% of businesses globally already incorporated in an IFC, it’s clear that fintech businesses within Africa increasingly identify an IFCs pivotal role. This is by offering a stable regulatory environment, business friendly policies, and access to international markets.
When deciding on a location to incorporate, several factors weigh heavy on the minds of fintech entrepreneurs. A growing emphasis on sustainability and ESG-friendly policies is evident for those within Africa, with 37% of business leaders considering these factors crucial. In addition, access to international markets and banking services is deemed crucial by 35% of companies, underscoring the need for seamless cross-border operations.
A stable and business-friendly regulatory environment is a top priority for 31% of businesses – key as it enables them to plan for long-term growth and navigate any changes in the regulatory environment with confidence. Additionally, the presence of a wellestablished professional services network, including lawyers, accountants, and advisors, is important for 27% of businesses.
Priorities for African fintech executives when thinking about where to incorporate their business
Sustainability and ESG-friendly policies
Access to international markets and banking services
A stable and business-friendly regulatory environment
Confidentiality and asset protection
A well-established professional services network
A straightforward and cost-effective incorporation
Political and economic stability
“The reason the BVI has such a strong draw for African fintech and digital assets businesses is because it provide solutions and corporate advantages that are not otherwise always available in domestic markets.
The BVI advantage particularly includes investor neutrality, flexible corporate law (enabling a company and/or a transaction to be best shaped to purpose), business appropriate regulation and a willingness to embrace new sectors like Fintech and Digital Assets.”
Greg Boyd Partner, Collas Crill
Balancing Speed, Cost, and Support
When deciding to incorporate, speed and cost will often be at the core of the business decision. However, it’s important to balance it with the long term considerations of scalability, regulatory compliance and access to markets. An IFC must also provide the right support services for growth. Globally, 76% of fintech businesses would like their incorporation process completed within three weeks. When looking specifically at African businesses, this number drops significantly as just 39% of businesses expect incorporation in under three weeks. A further 35% expect it between three weeks and a month.
“In no other sector is speed to market more important. Significant delays can (and often do) kill off deals. The BVI has a very compelling market offering and strong competitive advantage in this regard, but speed to launch must always be tempered with other critical considerations such as regulatory compliance, contractual and other risk mitigation, and ensuring that sufficient structural flexibility is baked-in upfront to enable innovation, scaling and adaptation in the future.”
Eric Flaye Partner, Conyers
“Incorporation speed affects market entry, investor confidence, competitiveness and global commercial and regulatory positioning. Brands set customer expectations with speed to market and efficiency builds brand loyalty. Speed provides more certainty of access to capital and infrastructure, demonstrates organisational readiness, helps to ascertain legitimacy and builds client trust in the product. It also continues to build trust in the BVI as a leading offshore incorporations jurisdiction. Speed should be balanced with onboarding/compliance, legal and operational considerations. Fintechs should always obtain the necessary legal advice to ensure jurisdictional fit.”
Ayana Hull Head of Private Wealth and Regulatory - BVI at Harneys
It isn’t just about speed when choosing a location for incorporation, cost also plays a key role. When speaking to executives across Kenya, Nigeria and South Africa about the cost-related benefits they seek when choosing a location to incorporate their business, it’s access to markets that trumps the list for 44%. However, both currency stability (35%), and cost-effectiveness (35%) play a significant role in the choice.
Support services are also vital to the incorporation process. Financial support services are sought by 68% of businesses, while tech and IT support is important for 67%. Legal and compliance advisory and government and administrative services are each valued by 43% of businesses.
Jurisdictions such as the BVI are especially appealing because they provide quick incorporation processes along with a stable regulatory framework, enabling businesses to expand efficiently across international borders. As the African fintech industry progresses, the importance of IFCs in laying the groundwork for global growth will become increasingly vital.
“What we typically see is there is often a three-month window to bring a project from ideation to formationthis is often determined by investor timelines and dynamic market cycles. Clients flock to the BVI due to its fast and modern incorporation process, legal certainty, and importantly a strong tech focused professional service culture.
“The BVI is an important node in the web3 ecosystem and has been working deeply in the space for over a decade. With its broad-minded regulatory approach, the BVI’s VASP legislation is set to pragmatically evolve, balancing international standards and the need to foster and facilitate innovation.”
Ronan Kuczaj Founder & CEO, DLT Solutions
Smart regulation for a thriving fintech future
Companies in the sector are navigating their global expansion amid a complex and swiftly evolving macroeconomic and geopolitical landscape. The past year has witnessed the emergence of the most substantial trade conflict in decades, a growing shift towards economic nationalism, and persistent geopolitical tensions.
For example, in South Africa a 30% U.S. tariff, effective August 2025, was imposed on many South African exports - particularly automotive, citrus, wine, and agricultural goods - leading to job and revenue risks. This was higher than any other African country. However, Nigeria, Ghana, Lesotho and Zimbabwe have also been hit with a 15% tariff4 .
As a direct result, half (50%) of business leaders across Kenya, Nigeria and South Africa view economic sanctions and access to finance as the geopolitical trends having the most profound impact on their business, the most frequently cited option, and higher than we see across international markets (43%). And on a related note, trade tensions and protectionism (31%), and political instability (31%) also score highly, followed by supply chain vulnerabilities (30%). Regulatory changes and compliance (34%) also remain a concern, complicating the operating environment.
Geopolitical trends having the most profound impact on businesses, according to African fintech leaders
4 https://www.bbc.co.uk/news/articles/cr74v1dzzxdo
For fintech companies, which frequently depend on international collaborations and investment, these pressures highlight the need to diversify operations, incorporate in markets that offer greater resilience against external disruptions and place their home in a jurisdiction with a flexible regulatory model.
Yet, across the continent regulation differs and each market is at its own stage of development when it comes to the regulation of digital assets. In 2022, South Africa’s Financial Sector Conduct Authority (FSCA) declared crypto assets to be financial products under the regulatory framework. Since then, crypto businesses require licensing and are subject to ongoing supervision. As of March 2024, 59 crypto licenses have been granted, with many more applications pending5. While in Nigeria, following a period of skepticism, the Central Bank of Nigeria lifted its crypto ban in December 2023. Now, Virtual Asset Service Providers (VASPs) can operate if they register with the Securities and Exchange Commission6
In Kenya, the Central Bank of Kenya (CBK) introduced mandatory licensing for all digital lenders, approving over 51 licenses so far. Within crypto, the country is also preparing a Virtual Asset Service Providers law expected in 20257. More broadly, while the AfCFTA has a protocol on Digital Trade, the legal text does not mention “cryptocurrency”, “virtual assets” or “digital asset” by name, crypto policy therefore remains at the member-state level for now.
So, with a fragmented landscape, business leaders within these countries are often looking towards IFCs for a stable business environment and a flexible, and advanced, regulatory framework. The aspects of a jurisdiction’s regulatory framework most valued by African fintech leaders are financial incentives (39%) and a clear fintech and virtual asset licensing framework (36%). This reflects the need for regulatory certainty, particularly in emerging sectors like cryptocurrency and blockchain, where unclear or inconsistent rules can stifle innovation.
Iona Wright, Partner, Regulatory & Risk Advisory, Walkers BVI: “Reputation has become paramount in the conversation on regulatory compliance. Businesses increasingly recognize the importance of wellregulated jurisdictions in attracting institutional capital and mitigating reputational risks, particularly following market disruptions.
“The “race to the bottom” is over: successful businesses must prioritize credibility, reputation and regulatory alignment from day one to scale sustainably. As larger, institutional market players enter the digital assets sector, we’re seeing DeFi structures look to future proof their regulatory compliance to a gold standard that will stand up to institutional scrutiny and expectations.
“The question is not if regulators will act, they have shown they want to work with businesses to find answers. It’s not about forcing DeFi to rebuild entirely, but about crafting regulatory architectures that are compatible with blockchain-native structures.”
Eric Flaye, Partner, Conyers: “Regulatory uncertainty, in terms of future potential developments, is par for the course in this sector. Sophisticated industry players are generally understanding of this and willing to accept a degree of related disruption risk (in not viewing any particular fintech, crypto or defi operation as necessarily evergreen in a given jurisdiction). The real consideration when setting-up then becomes one of comparative advantage in terms of relative certainty, stability and reliability.
5 https://www.reuters.com/world/africa/south-africas-financialconduct-regulator-approves-59-crypto-licences-2024-03-13/
6 https://fintechinsider.africa/fintech-regulations-in-africanavigating-the-legal-landscape/
7 https://fintechinsider.africa/fintech-regulations-in-africanavigating-the-legal-landscape/
“The BVI is often the preferred offshore jurisdiction by these metrics, not only for its attractive regulatory environment but also the flexibility of its company and partnership laws (which enable entities to be formed, structured, capitalized, operated, re-organised and ultimately exited very efficiently).”
Feeding innovation
Given fintech largely relies on innovative technologies, it’s essential that while businesses grow and comply with regulation and licensing frameworks, they are also given the opportunity to utilize new technologies to scale.
There’s a clear shift underway in the global financial landscape, marked by the rise of decentralized finance (DeFi) and decentralized autonomous organizations (DAOs). These technologies remove traditional intermediaries and automate financial processes, unlocking new possibilities for participation, transparency, and efficiency.
In fact, when speaking to African business leaders just under half (49%) said Blockchain and Distributed Ledger Technology (DLT) is core to their fintech product or service. These are important elements that will be key to international growth given businesses using this technology can more seamlessly operate cross-border.
As companies look to scale and take advantage of new innovations, regulatory challenges play a key role in the decision of where to incorporate. For 40% of business, conflicting regulations across different jurisdictions making compliance costly and complex significantly influence their selection.
As these decentralized models grow more sophisticated, they present unique challenges for businesses and regulators alike. IFCs have an essential role in helping firms navigate this transition, by offering regulatory clarity, legal innovation, and the institutional infrastructure necessary for decentralized technologies to scale responsibly.
“The BVI’s fintech ecosystem is a global draw, not only for African fintech and digital-assets businesses. Its advantages are well documented for token issuers, crypto exchanges, DAOs, DeFi platforms, crypto funds and asset managers. A stable political environment; an English common-law–based legal system; flexible, business-efficacy–driven corporate vehicles; high-quality service providers; a forward-thinking regulator developing a fit-for-purpose fintech regime; and the use of the US dollar all make the BVI an attractive leading international financial centre for fintech.”
Jeffrey Kirk Managing Partner, Appleby
The most valued aspects of a market’s regulatory framework when
Afterword
Elise Donovan CEO, BVI Finance
“Africa’s fintech sector is no longer an emerging story - it is a global force. With over $1 billion raised in 2024 alone, African startups are growing at a pace that rivals established hubs in Asia and Latin America. The ambition is clear: 96% of African fintechs see cross-border expansion as critical, a figure that exceeds the global average of 94%. Similarly, the adoption of AI, blockchain, and automation reflects a broader worldwide trend, underscoring Africa’s alignment with global priorities in efficiency and scalability.
International Finance Centers such as the BVI play a pivotal role in allowing this sector to thrive, providing regulatory clarity, market access, and trusted frameworks that foster growth while safeguarding innovation. As global fintech evolves toward decentralized finance and sustainable models, Africa’s trajectory positions it not as a follower but as a contributor to shaping the future of digital finance worldwide.”
Methodology
The research was conducted by Censuswide, among a sample of 226 Business leaders (director+) working in fintech, aged 18+ across Nigeria, South Africa, and Kenya. This study adds to the Destination Digital survey with 451 business leaders (director+) working in fintech, aged 18+ across the USA, UK, Mexico, Singapore, Hong Kong and China.
Censuswide abides by and employs members of the Market Research Society and follows the MRS code of conduct and ESOMAR principles. Censuswide is also a member of the British Polling Council.
Acknowledgments
We would like to thank industry experts from the BVI – Greg Boyd, Eric Flaye, Philip Graham, Ayana Hull, Michael J. Killourhy, Jeffrey Kirk, Ronan Kuczaj and Iona Wright - who have provided their thoughtful insights.
We like to offer further thanks to MHP Group who contributed to the analysis, copywriting and design.
