PalmPay, an African-focused fintech company, has highlighted the crucial role of investor confidence in driving sustainable growth within the continent’s fintech ecosystem.
Speaking at the 2024 Nigeria Fintech Week, Managing Director Chika Nwosu stressed the need for founders to work closely with investors to mitigate challenges posed by currency devaluation and rising interest rates.
Nwosu acknowledged the impact of economic volatility on investor sentiment, particularly in light of the declining value of sub-Saharan African currencies against the US dollar. He emphasized that founders can address these challenges by diversifying their revenue streams and expanding into multiple markets.
“By entering diverse markets, fintechs can spread their risk and minimize the impact of instability in any single region,” Nwosu explained, citing PalmPay’s operations in Nigeria, Tanzania, Ghana, and other countries as an example.
The 2024 Nigeria Fintech Week, held under the theme “Positioning Africa’s Fintech Ecosystem to Accelerate Growth,” brought together industry leaders, policymakers, investors, and innovators to discuss the future of financial technology in Africa.
According to FintechNGR President Ade Bajomo, investments in the African fintech sector have declined significantly in recent years, but the continent still offers numerous growth opportunities. The panel session also underscored the importance of founders engaging with policymakers and regulators to stay informed and navigate regulatory challenges.