Southern Africa FinTech Developments Q3 2020

As we have seen in previous reports, the near global lock-down had a significant impact on investment activity across Q1 and Q2 2020.

However, with markets tentatively reopening, investment activity across the Southern Africa region in Q3 2020 has seen an uptick both in the number of deals closed and the amount raised. Our analysts look at this in more detail in our Q3 Southern Africa Report.

Fintech M&A Activity

While Q3 2020 has certainly seen a shift in activity, founders and entrepreneurs in the Southern African FinTech sector have been especially busy. Following on from the news that Southern African payments company MFS Africa acquired East Africa payments manager Beyonic, and Standard Bank’s acquisition of Payment24, Q3 2020 saw 4 acquisitions of Southern Africa FinTech or E-commerce businesses.

Luno, a cryptocurrency exchange, was acquired by US-based Digital Currency Group in September and it was announced that WeBuyCars, an e-commerce platform for new and used cars, was acquired by Transactional Capital. Earlier in the quarter we saw the acquisition of both Zimbabwean e-commerce company AfricaBookings by HotelOnline and TradeSafe, a digital escrow service, by Standard Bank.

Southern African FinTech expands its global footprint

While the measures put in place by governments around the globe in response to the coronavirus (COVID-19) pandemic are eased, albeit tentatively, FinTech founders in Southern Africa reported a flurry of regional expansions and strategic partnerships.

Our analysts recorded a total of 16 such announcements in Q3 2020, perhaps highlighting a return to a new business-as-usual.

Let us know who we missed!

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This article was first published in October 2020.