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Fintechs Must Boost Investor Confidence To Attract Investment — Palmpay Boss

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The Managing Director of PalmPay Nigeria, Chika Nwosu, has stressed the need for fintechs to boost investors’ confidence to drive more investment across the continent.

He noted that working closely with investors was vital to creating value.

Nwosu made the call while speaking at the recently concluded 2024 Nigeria Fintech Week, themed “Positioning Africa’s Fintech Ecosystem to Accelerate Growth’, held in Lagos.

Nwosu stated, “The fintech ecosystem is not saturated, but founders need to be mindful of building investor’s confidence amid currency devaluation and rising interest rates. We have seen that most of the currencies of sub-Saharan Africa have plummeted against the US dollar, including the Egyptian pound, naira, rand, cedi, Congolese franc, and Kenyan shilling.

“This devaluation is impacting the value of investments, which in turn lowers investor confidence and makes it difficult for fintech startups to secure funding.”

Nwosu, who participated in a panel discussion with the theme “Safeguarding the Funding Pipeline for Fintech in Africa”, stated that founders could mitigate those challenges by diversifying their revenue streams and expanding into multiple geographical regions.

He further mentioned that relying solely on one market could expose companies to regional economic volatility.

“By entering diverse markets, fintechs can spread their risk and minimize the impact of instability in any single region,” he said.

According to the President of FintechNGR, Ade Bajomo, investments in the fintech sector in Africa declined significantly, dropping 77 per cent to $186m from $826m in H1 2023.

“The number of deals decreased 30 per cent year-on-year and average deal size fell to $4m in H1 2024 from $10.5m in H1 2023. However, we still have many growth opportunities in the continent,” he asserted.

Bajomo also noted the need for founders to continuously engage with policymakers and regulators to stay informed.


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