Africa’s fintech sector to hit US$65bn by 2030 despite policy headwinds

By Elizabeth PUNSU

Africa’s fintech sector is experiencing unprecedented growth, with revenues projected to reach US$65billion by 2030 following a remarkable 180 percent expansion since 2020, according to a new report by Africanews.

The report highlights how mobile money platforms, digital wallets and interoperable payment systems are reshaping the continent’s financial landscape by bringing millions of previously unbanked people into the formal economy.

However, it warns that the sector’s rapid growth is increasingly under threat from transaction taxes and regulatory uncertainty across several African countries.

According to the report, governments seeking to raise domestic revenue are imposing levies on mobile money transactions and digital payment systems – a move international financial institutions say could slow digital adoption and undermine financial inclusion gains.

The International Monetary Fund (IMF), World Bank and United Nations Economic Commission for Africa (ECA) have all cautioned against taxing digital payment rails, urging governments instead to use digital infrastructure to improve tax compliance and revenue collection.

The issue dominated discussions at the ECA’s 58th Conference of Ministers in Tangier, Morocco, and the IMF and World Bank Spring Meetings in Washington held in April this year.

The report noted that fintech has become one of Africa’s fastest-growing sectors, driven by rising smartphone penetration, increased internet access and growing demand for seamless digital transactions.

Mobile money has particularly transformed financial inclusion across sub-Saharan Africa. Kenya’s M-Pesa platform, for instance, helped raise the country’s financial inclusion rate from below 30 percent to over 83 percent within a decade.

Globally, mobile money accounts now exceed 2.1 billion registered accounts, with Africa accounting for the majority of users.

Despite the growth trajectory, the report warned that new taxes on digital transactions could reverse many of the gains made in recent years.

Evidence from Uganda showed that mobile money transactions fell sharply after the introduction of a digital levy, while Ghana’s e-levy also faced strong public resistance before eventually being scrapped in April 2025.

Industry players argue that unpredictable fiscal policies create uncertainty for investors and operators seeking to scale digital financial services across multiple African markets.

The report further observed that Africa’s growing business-to-business digital payments market – projected to reach US$162billion by 2033 – depends heavily on stable and predictable regulatory environments.

It also stressed that fragmented national tax regimes could threaten regional integration efforts under the African Continental Free Trade Area (AfCFTA), particularly cross-border payment initiatives such as the Pan-African Payment and Settlement System (PAPSS).

The report nonetheless identified opportunities for fintech firms to reposition themselves as critical partners in tax compliance and economic formalisation.

Countries such as Kenya and South Africa are already using digital transaction data and artificial intelligence systems to improve tax collection efficiency without directly taxing mobile money transactions.

According to the report, fintech firms that invest in compliance systems and governance infrastructure are likely to become more valuable to governments seeking to broaden their tax base while protecting the digital economy’s growth momentum.

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