Mckinsey: Morocco Is Among Key African Markets for Fintech Growth

Rabat – Morocco is on a list of 11 African countries with significant potential to become future fintech hubs, according to the American consultancy group Mckinsey & Company.

In a document published earlier this week, Mckinsey explained that they anticipate growth opportunities in fintech to be largely concentrated in 11 key markets in Africa. The list includes Morocco, Cameroon, Côte d’Ivoire, Egypt, Ghana, Kenya, Nigeria, Senegal, South Africa, Tanzania, and Uganda.

The 11 countries account for 70% of the continent’s Gross Domestic Product (GDP) and account for half of Africa’s population, the report pointed out.

Among other arguments underlying the selection of the 11 countries is that close to 50% of Africa’s software developers, a key profession in the fintech enterprise, can be found in only five of the countries, including Morocco, South Africa, Nigeria, Kenya, and Egypt, the report noted.

Mckinsey argued that the concentration of talent in these countries means that they are well positioned to see significant growth in fintech business opportunities.

Despite having the necessary human capital to see the proliferation of a fintech ecosystem, the consultancy maintains, African countries face significant talent retention challenges, as white-collar workers tend to emigrate to richer countries in search of better working conditions and higher salaries.

On the prospective markets for fintech, Mckinsey said that given Morocco’s mature conventional banking sector and low reliance on mobile payment, fintech operators in the country have much to benefit from pivoting to B2B (Brand to Brand) financial services.

The consultancy notes the future prospects of fintech in Africa, arguing that a rising fintech industry promises jobs and wealth. It cited studies that illustrate how fintech could increase access to financing services in crucial sectors such as agriculture, as well as boost financial inclusion to serve the underbanked and the unbanked.