S. Wichmann, N. Waithaka, P. Hermann, N. Burbidge: Investing in Fintech l Africa/Week 2025

Quick Overview

The panel discussion at Norrsken Africa/Week 2025 focused on the challenges and strategies for investing in African Fintech, particularly highlighting the shift from pure growth metrics to profitability, the necessity for strong local operational capabilities (like data flow and local currency access), and the need for regulatory clarity to support scaling businesses.

Key Points: Fintech investment in Africa is shifting focus from pure growth metrics like 2020-2021 hype to profitability, sustainable unit economics, and positive cash flow. Getha Waithaka (Norrsken22) mentioned that 50-60% of their fund is in Fintech, and they look for companies that can manage risk and support growth across various markets. Sebastien Wichmann (Lendable) highlighted the importance of creating liquidity for shareholders and noted that their firm focuses on private debt, bridging the gap between Fintechs and incumbents like banks. There is a recognized gap where African banks struggle to service smaller FinTechs due to lacking technology infrastructure for credit scoring and KYC/AML checks, which FinTechs often solve. The panel agreed that local currency operations are vital; for instance, using local currency for lending instead of relying solely on USD is key for sustainability. Geoffrey Waithaka advised founders to take as much free money/accelerator money as possible early on, provided they have the right vision and team structure. The discussion concluded with the need for regulatory frameworks to evolve alongside FinTech innovation, ensuring consumer protection while enabling cross-border movement of money.

Context: The video captures a panel discussion titled "Investing in Fintech l Africa/Week 2025" hosted by Norrsken. The panel featured four experts: Noni (moderator, from Enza Capital, a multi-stage Pan-African VC), Sebastien Wichmann (Lendable, a private debt fund), Geoffrey Waithaka (Norrsken 22, focused on growth-stage investors), and an unnamed female panelist (likely representing a local/regulatory perspective). The conversation centered on current trends in African Fintech investment, moving away from hyper-growth strategies to prioritizing sustainable profitability and navigating complex regulatory environments.