# S. Wichmann, N. Waithaka, P. Hermann, N. Burbidge: Investing in Fintech l Africa/Week 2025 Source: https://www.youtube.com/watch?v=5A6yvyFnHUA Recap page: https://rapidrecap.app/video/5A6yvyFnHUA Generated: 2026-02-06T23:36:20.553+00:00 --- ## 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. ![Screenshot at 00:16: Noni introduces the panel, stating she works for Enza Capital, a multi-stage Pan-African VC, setting the stage for a discussion on African Fintech investment strategies.](https://ss.rapidrecap.app/screens/5A6yvyFnHUA/00-00-16.jpg) **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. ## Detailed Analysis The panel, moderated by Noni of Enza Capital, featured Geoffrey Waithaka of Norrsken22, Sebastien Wichmann of Lendable, and an unnamed female panelist. The core theme was the evolution of Fintech investing in Africa, moving away from the high-growth, low-profitability focus seen during the 2020-2021 boom towards a greater emphasis on sustainable unit economics and profitability. Geoffrey Waithaka confirmed that 50-60% of Norrsken22's fund is allocated to Fintech, noting that the current environment demands companies that can manage risk and show a clear path to sustainability, citing examples like Nigerian FinTechs that have successfully navigated this shift. Sebastien Wichmann discussed the role of private debt in bridging the gap between innovative Fintechs and traditional banks, noting that while banks struggle with local compliance (like KYC/AML for small loans), FinTechs can bridge this gap but must also focus on sustainable growth rather than just top-line expansion. The panelists agreed that reliance on foreign currency (like USD) for local lending is unsustainable, emphasizing the need for local currency financing capabilities. They also touched upon regulatory hurdles, noting that while regulators are catching up, the current landscape is still challenging, especially for cross-border payments. The final advice to founders was to focus on building strong internal governance, customer ownership, and ultimately, sustainable, profitable businesses rather than chasing vanity metrics. ### Fintech Investment Trends - Shift from growth hype (2020-2021) to profitability - Focus on sustainable unit economics and positive cash flow - Risk management is critical for portfolio companies. ### Lendable's Strategy (S. Wichmann) - Focus on private debt to bridge Fintechs and incumbents - Importance of creating liquidity for shareholders - Cross-border payment infrastructure is complex and needs fixing. ### Challenges in African Banking - Banks struggle to service smaller FinTechs due to lacking technology for credit scoring/KYC/AML - FinTechs can provide superior customer journeys and services in these areas. ### Local Currency Importance - Sustainable growth requires moving away from USD dependency to local currency financing (e.g., local currency loans) for better risk management. ### Advice to Founders (G. Waithaka) - Take all available early capital (accelerator money) if the vision/team is strong - Focus on building a strong internal structure (governance, data) to manage growth. ### Regulatory Landscape - Regulation is slowly evolving, but the gap between FinTech innovation and regulatory support remains a challenge, especially concerning cross-border flow. ![Screenshot at 00:01: Moderator Noni opening the panel discussion on Fintech investing and introducing herself as an Investment Principal at Enza Capital.](https://ss.rapidrecap.app/screens/5A6yvyFnHUA/00-00-01.jpg) ![Screenshot at 00:34: Geoffrey Waithaka introducing himself as being with Norrsken 22, focusing on growth-stage investors in Fintech.](https://ss.rapidrecap.app/screens/5A6yvyFnHUA/00-00-34.jpg) ![Screenshot at 01:15: Sebastien Wichmann detailing Lendable's 15+ years experience investing across various asset classes, including private equity and venture capital.](https://ss.rapidrecap.app/screens/5A6yvyFnHUA/00-01-15.jpg) ![Screenshot at 02:22: The moderator asking a pointed question about the shift in focus from the 2020-2021 hype to current investment priorities.](https://ss.rapidrecap.app/screens/5A6yvyFnHUA/00-02-22.jpg) ![Screenshot at 09:09: Geoffrey Waithaka advising founders to take as much free money/accelerator money as possible early on, provided they have the right vision.](https://ss.rapidrecap.app/screens/5A6yvyFnHUA/00-09-09.jpg)