Infrastructure deficit leads to fraud and technical failures.
Fintech is the new bride. It is still attracting investors’ attention. It gets more funds. It creates more bubbles. This bubble may not last forever without the requisite infrastructure in place. Because, in themselves, fintech firms cannot move payments without a supporting infrastructure. Think about the analogy of the trailer. The 16-tyre trailer will carry a 40-foot container with various goods. Without the coupler – the head of a trailer – a trailer is useless.
On the one hand
A recent report by Intelpoint shows that African start-ups raised $3,499 billion across 275 funding rounds in 2025. This marked a year defined by: Capital concentration. Infrastructure bias. Increasing funding maturity. The report shows that while the total funding remained substantial, activity was uneven. A few large transactions influenced this.
On the other hand
In Africa, making a seamless payment across borders remains a big challenge. Any fintech firm that innovates around this challenge will attract funding. Besides, a lack of adequate infrastructure is another challenge. Poor internet connectivity and unreliable power supply.
In the long term
Intelpoint report shows that fintech retained its leadership position, with $1.4 billion in revenue. It reflected a sustained demand for digital payments. Credit. Financial infrastructure. It shows that the capital remained concentrated in the Big Four: Nigeria. Kenya. South Africa. Egypt.
Nigeria had $314 million with fintech-heavy but lower overall inflows. Kenya got $1.1 billion, primarily from energy megadeals. South Africa had $882 million. This country demonstrated sectoral diversity. Fintech. Energy. Insurance technology. Egypt had $709 million in investment.
A clue lurks underneath the figure. The Nigerian fintech ecosystem got less funding. Why is this so? While the other three countries have embraced infrastructure and energy, we are stuck in the fintech rut. Can we change gear? Can we pull in other areas like infrastructure? Insurtech? Regtech?
Or is it that investors are disinterested in building infrastructure? How can we make these areas attractive to the venture capitalists? Because without funding, no matter how beautiful the idea, the idea will remain a bumblebee. It cannot fly. If it does fly, it cannot scale.
Research has shown that fintech firms are not accustomed to building infrastructure. Building infrastructure consumes time. It is expensive. Due to this, fintech firms often run on a ‘third-party’ infrastructure. Flutterwave ‘rented’ MasterCard’s infrastructure before it built its own processor. Other fintech firms operate through banking-as-a-service providers. It is like employing Uber drivers to run errands. We need to build our own infrastructure.
Why this matters
A banking app runs on an existing infrastructure. Infrastructure provides the trust, security, and connectivity required to move payments. Fintech cannot move the economy. These other elements must be ready to push the needle. Yes, fintech pushes payments. What pushes payments? You and I push payments. We find fulfilment because some ‘‘couplers’’ make it happen.
In the short term
An infrastructure deficit usually leads to high fraud and technical failures.
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