Source page: McKinsey & Company
Commentary
Fintech’s moment in Africa
Fintech | Financial services | Africa
November 8, 2022 – The fintech industry in Africa has reached an inflection point. Cash is still used in about 90 percent of transactions on the continent, but if the sector can reach similar levels of penetration to those seen in Kenya—a country with one of the highest levels of fintech penetration in the world—we estimate that industry revenues could grow eight times their current value by 2025, according to findings by McKinsey senior partner Tunde Olanrewaju and coauthors.
To read the article, see “Fintech in Africa: The end of the beginning,” August 30, 2022.
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Visual form
Growth projection chart.
Layout / body structure
The chart is organized around a current-versus-future market comparison, with the reader moving from today’s cash-heavy transaction environment to the projected fintech revenue upside if penetration rises toward market leaders. The reading order is from present underpenetration into future scale.
What is being compared
It compares current fintech penetration in Africa with the higher penetration seen in leading markets such as Kenya, and it maps that gap to possible revenue growth.
Measurement system
The page uses penetration levels and revenue growth multiples, with the market opportunity expressed in how many times larger industry revenues could become by 2025.
Visible structure inside the graphic
The internal pieces are the baseline penetration or transaction profile, the benchmark set by market leaders, and the resulting revenue-growth projection. The structure makes the gap between current state and leader state the engine of the comparison.
Main takeaway from the visual
The chart shows that Africa’s fintech opportunity depends less on inventing a new category than on closing a large penetration gap. The visual frames the current market as early stage and the leader benchmark as proof of much higher possible scale.
Key standout values or extremes
The page notes that cash still accounts for about 90 percent of transactions on the continent and that fintech revenues could grow by up to eight times by 2025 if penetration reaches levels seen in leading markets such as Kenya.
Controls / sequence, when applicable
This is a static chart image with no in-chart controls to operate.
Companion media, when applicable
There is no separate companion audio or video; the chart image is the full visual on this page.