Affinity Africa’s recent $8 million oversubscribed Seed round is a clear testament to the growing investor confidence in Africa’s digital banking space. The participation of top-tier investors such as Grazia Equity, Backed VC, Enza Capital, and others underscores the significant opportunity that exists in expanding financial inclusion across the continent.
Founded by Tarek Mouganie, Affinity Africa has demonstrated strong traction, onboarding over 50,000 customers since its launch in Ghana in October 2024. Its branchless model, leveraging a proprietary technology platform, a mobile and web app, and an agent network, positions it as a major disruptor in the financial services landscape.
Africa is undergoing a significant digital banking revolution, fundamentally transforming its financial landscape and promoting financial inclusion across the continent. This transformation is driven by technological advancements, strategic investments, and innovative solutions tailored to meet the unique needs of African consumers and businesses.
The adoption of digital banking in Africa has seen remarkable growth. Between 2016 and 2021, the number of internet users in Sub-Saharan Africa increased by 115%, facilitating greater access to digital financial services. Notably, 60% of African banks have now digitally transformed most of their operations, with 76% ranking digital transformation as a top priority.
Mobile money services have been at the forefront of this revolution. In 2021, 55.07% of the African population had a bank or mobile money account, a significant increase from 23.33% in 2011. Countries like Kenya and South Africa have achieved digital payment usage rates as high as 95% to 98% among account owners.
Oversubscription in funding rounds is an indicator of strong demand from investors, signaling a combination of confidence in the business model and a belief in its growth potential. In Africa’s fintech space, this trend is becoming more common, reflecting a shift where investors are now more eager to back scalable, technology-driven financial solutions that address systemic banking challenges.
For Affinity Africa, this oversubscription validates its unique approach—bridging the gap for individuals and MSMEs through low-cost, high-accessibility financial products. It also highlights the increasing appetite for investments in digital-first banks that challenge traditional institutions’ inefficiencies, high fees, and slow service delivery.
Despite the progress, challenges persist. Approximately 45% of the African population remains unbanked, with women representing a significant portion of this demographic. Addressing issues such as digital literacy, infrastructure deficits, and affordability is crucial. However, these challenges also present opportunities for innovation. By focusing on affordable, user-friendly digital solutions, there is potential to reach underserved markets and promote economic empowerment.
The future of digital banking in Africa is promising. The Digital Banks market in Africa is projected to grow by 6.30% between 2025 and 2029, reaching a market volume of US$5.35 billion by 2029. This growth will likely be driven by continuous technological innovation, regulatory support, and an increasing shift towards cashless economies.
With Affinity Africa looking to scale its operations in Ghana before expanding internationally, its journey will serve as a critical case study for other emerging digital banking players. Key areas to watch include:
Affinity Africa’s success signals a broader trend—Africa’s digital banking sector is maturing, attracting capital, and redefining financial services on the continent. The future is bright for fintechs that can balance scale, efficiency, and financial inclusivity in a way that truly meets the needs of African consumers and businesses.
Edith is the Founder and CEO of Arielle for Africa Ltd. and Arielle Advisory. A serial entrepreneur, she is on a mission to empower African youth through job creation, promoting entrepreneurship, scaling African businesses, advancing STEM education, and championing sustainability in business. Outside of her profession she is an avid reader, podcast show host, writer and public speaker.
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