Fintech in West Africa: A Booming Industry With ESG on the Horizon
West Africa has emerged as one of the most vibrant and rapidly evolving fintech ecosystems in Africa. Driven by mobile-first innovation, increasing financial inclusion needs, and a young, tech-savvy population, fintech startups have become a transformative force across the region. Nigeria, Ghana, Senegal, and Côte d’Ivoire are at the forefront of this evolution, with each country contributing to a growing web of digital financial services that now stretch beyond borders.
Yet, while financial inclusion and innovation remain top priorities, there's a growing conversation around Environmental, Social, and Governance (ESG) responsibility in the fintech sector. As global and local investors begin to demand greater accountability and transparency, the intersection of fintech and ESG is becoming more important than ever.
This report dives into the fintech landscape in West Africa, exploring key players, investment flows, and the budding but crucial role ESG is beginning to play.
The State of Fintech in West Africa
West African fintech has experienced explosive growth in the last decade. The region’s fintech startups raised hundreds of millions in funding in 2024 alone, with Nigeria reclaiming its position as the top destination for venture capital on the continent, drawing over $520 million in equity funding across 103 deals.
The main drivers of this boom include:
High mobile penetration: Mobile phone usage across West Africa has soared in the past decade. With smartphones becoming more affordable and mobile networks expanding into rural regions, the majority of the population—especially the youth—now has access to digital tools. This high level of mobile adoption provides the essential infrastructure for mobile banking, mobile payments, and financial apps to thrive.
A large unbanked population: A significant portion of West Africans still lack access to formal banking services. In Nigeria, for instance, more than 60 million adults are unbanked. Fintechs are seizing this opportunity to introduce digital wallets, agent banking, and other solutions that bypass traditional banks and deliver financial services directly via mobile phones.
Underdeveloped traditional banking systems: In many areas, brick-and-mortar banks are either non-existent or difficult to access. Bureaucracy, high fees, and documentation requirements have also deterred many from engaging with traditional banks. Fintech startups are filling this vacuum with agile, customer-centric alternatives that prioritize accessibility and ease of use.
A youthful, entrepreneurial demographic: West Africa has one of the youngest populations globally. With growing internet literacy, digital fluency, and a hunger for innovation, young people are both consumers and creators in the fintech space. Many of the region's fintech founders are under 35, building products tailored to the needs of their peers and leveraging mobile-first platforms to scale quickly.
These conditions have fostered innovation in mobile payments, digital banking, micro-lending, savings platforms, and cross-border transactions.
Top Fintech Startups by Country
Nigeria:
Flutterwave: Payments infrastructure powerhouse valued over $3B.
Paystack: Online payments giant, acquired by Stripe in 2020.
Kuda: A leading digital bank with over $90M in funding.
PiggyVest & Cowrywise: Digital savings and investment platforms.
Moniepoint: Agent banking and SME-focused digital services.
Ghana:
Zeepay: Mobile money and remittance services.
Dash: Cross-border wallet interoperability.
BezoMoney: Social savings for underserved communities.
Senegal:
Wave: No-fee mobile money disrupting telco-led models.
PayDunya: Payment gateway for Francophone markets.
MaTontine: Digitizing group savings and micro-lending.
Côte d’Ivoire:
Julaya: B2B digital payment and payroll solutions.
CinetPay: Secure payments for e-commerce.
Djamo: Neobank offering cards and financial literacy.
Investment Flows and Key Investors
West African fintech continues to attract global capital at impressive rates. In 2024, fintech startups across Africa secured roughly $1.4 billion, and West Africa claimed a large share of that, especially in Nigeria.
Notable investment highlights:
Moniepoint (Nigeria) raised $110M, reaching unicorn status.
Flutterwave continues to expand after a $250M Series D.
Kuda, FairMoney, and Chipper Cash also received multimillion-dollar funding rounds.
Key investors fueling this growth include:
Development Partners International (DPI)
Google Africa Investment Fund
Partech Africa (launched a $300M Africa-focused fund)
TLcom Capital and Norrsken22
IFC and FMO, development finance institutions pushing impact-oriented investments
These investors are not only injecting capital but also introducing governance frameworks, ESG reporting requirements, and long-term scaling strategies.
The ESG Conversation: Early but Growing
While fintech is primarily seen as a tool for financial access and innovation, its potential as an ESG-aligned sector is becoming clearer. Here’s how ESG factors are starting to influence fintech in West Africa:
Environmental (E)
Fintech platforms inherently reduce the carbon footprint by digitizing previously paper-heavy, in-person banking.
Emerging interest in climate-linked financial products, such as green loans and climate insurance.
Agricultural fintechs are beginning to integrate weather and sustainability data into their credit models.
Social (S)
The strongest ESG alignment exists here:
Platforms like Moniepoint, Opay, Paga, and Wave bring banking services to remote, underbanked areas.
BezoMoney and MaTontine empower women and informal entrepreneurs.
Products promote financial literacy, savings culture, and economic inclusion.
Governance (G)
As startups mature, there's a visible push toward:
Stronger AML/KYC protocols
Responsible lending standards
Transparent data privacy and protection measures
Investors are requiring ESG reporting as a precondition for funding.
Challenges in ESG Integration
Despite progress, several challenges remain:
Limited environmental focus compared to social goals: While fintech platforms often create indirect environmental benefits by digitizing services and reducing the need for physical infrastructure, very few have direct strategies aimed at environmental sustainability. There's a noticeable absence of green financial products, carbon footprint tracking, or support for eco-friendly sectors like renewable energy or sustainable agriculture. This leaves a gap where fintech could play a greater role in environmental stewardship.
Lack of standardized ESG metrics among startups: Most early- and even mid-stage fintechs do not yet report on ESG indicators in a structured or consistent way. Metrics such as gender inclusion, carbon savings, or data transparency are rarely tracked or shared publicly. This makes it difficult for investors and stakeholders to evaluate the impact or sustainability of these businesses, and it hampers efforts to benchmark or scale ESG initiatives across the industry.
Governance practices vary widely, especially in early-stage companies: While some well-funded fintechs adopt strong internal governance practices, others—especially startups in early growth phases—lack formal boards, risk management protocols, or compliance departments. This inconsistency can lead to poor decision-making, vulnerabilities in cybersecurity, or difficulty in scaling operations responsibly. As regulatory scrutiny increases, governance will become a make-or-break factor.
Some startups face criticism over aggressive lending and debt recovery tactics: In the race for market share, some digital lenders have been accused of high-interest rates, predatory lending models, and invasive debt collection practices. This undermines the trust they seek to build with users and can contradict the broader ESG objective of promoting fair and inclusive finance. Addressing this issue requires a balance between innovation, profitability, and consumer protection.
Still, there's clear momentum. ESG is no longer a Western buzzword—it’s becoming an operational lens for long-term success in West African fintech.
What’s Next? Opportunities Ahead
The intersection of ESG and fintech is full of opportunity:
Green lending models for agriculture and clean energy financing: These models enable fintech platforms to offer loans specifically tied to eco-conscious initiatives. For agriculture, this may include credit to farmers who adopt sustainable farming practices, such as water-efficient irrigation or organic inputs. In clean energy, it supports consumers and SMEs who invest in solar systems, biodigesters, or electric mobility solutions. By tying financial support to environmental impact, fintechs create incentives for sustainable behavior while opening new markets.
Digital identity and inclusive KYC solutions: Traditional Know Your Customer (KYC) protocols often exclude individuals lacking formal ID documentation, a common barrier in many West African regions. Inclusive digital identity solutions—such as biometric verification, mobile-based ID registration, and blockchain-backed credentials—are allowing more people to access financial services securely and conveniently. Fintechs that adopt such systems are helping bridge the identity gap and reduce exclusion from the formal financial system.
ESG analytics-as-a-service platforms for African startups: These are emerging tools or service providers that help startups track, report, and improve their ESG metrics. They might offer dashboards that monitor carbon savings, social impact (like gender inclusion), or governance risks. This is especially helpful for early-stage fintechs seeking to attract institutional capital or development finance, as it aligns them with international reporting standards without requiring large in-house compliance teams.
Ethical AI and data governance embedded in credit scoring and risk systems: As AI becomes central to credit decisions, ethical considerations are paramount. Ethical AI ensures models are free from biases that might marginalize vulnerable groups. Coupled with data governance practices that prioritize consent, transparency, and privacy, fintechs can build trust and avoid regulatory backlash. In credit scoring, this means using explainable algorithms and allowing users insight into how their financial behavior influences their eligibility.
As investors continue to demand impact metrics and regulators sharpen oversight, the fintechs that proactively embed ESG will be the ones best positioned for scale, resilience, and global partnerships.
West African fintech is in a golden age of expansion, powered by innovation and a hunger to solve local financial challenges. The ESG wave is still gathering force, but early adopters are already laying the foundation for sustainable, inclusive growth.
As fintech startups in the region continue to scale across borders and verticals, those who align profits with purpose—especially in financial inclusion, good governance, and environmental stewardship—will lead the way into a future where tech does more than disrupt: it empowers.