Amazon Web Services (AWS) has announced the selection of 25 early-stage African fintech startups for its inaugural FinTech Africa Accelerator cohort, set to commence in June. This cohort, chosen from over 500 applications, is part of the broader EMEA Startup Loft Accelerator (SLA) program run by AWS. The accelerator program, which was first announced in March, specifically targets pre-seed and seed-stage fintech founders operating in Africa who are building companies to address fundamental issues across various financial services categories.

Eleven Nigerian fintech startups constitute the largest national contingent in the cohort. These include Ashiri NG, bunce, DeemPay, Fluna, Incash, KoinWa, Stacs, Vagrent Africa, WALLX Africa, Zainnest, and Zeeh Africa. Other participating nations include Kenya with four startups (Chumz, hela.money, Kiotapay, and Mauzo), Ghana also with four (Asaana Pay, Edanra, Exxtra, and H28 Technologies), Uganda with two (eMaisha Pay and Xazu Technologies), and South Africa with two (Abela iMali and Moya Money). Cameroon is represented by Dreamcash, and Egypt by MazAid, completing the diverse geographic representation.

The 10-week program will provide each selected startup with valuable resources, including technical review workshop sessions, up to $25,000 USD in AWS technical credits, and world-leading sector advice. Crucially, participants will also receive one-to-one mentorship from major industry players such as the Africa Fintech Summit (AFTS), Lendsqr, and Vestbee, aiming to support them in building and scaling their businesses effectively. The application process for the cohort ran until April 27, 2023.

The program embraces a wide array of fintech verticals and value propositions, despite all participating companies being fintech-focused. These areas include finance and lending for Micro, Small, and Medium Enterprises (MSMEs), cryptocurrency transactions, global remittance products, freelancer payment and invoice management, and export/import management, among others.

Napa Onwusah, Start-up Segment Lead at AWS, expressed enthusiasm for AWS's role in Africa's digital transformation, emphasizing the commitment to making core financial services accessible. “We believe that anyone regardless of their location, should be able to access innovative technologies and realize their dreams,” Onwusah stated, highlighting the accelerator's potential to empower startups to grow and scale. Industry leaders also lauded the initiative. Agnes Aistleitner Kisuule, Co-Founder and Managing Partner of First Circle Capital, noted it as a great opportunity for entrepreneurs to hone ideas and drive growth in Africa’s financial services industry. Barbara Iyayi, Founding Managing Partner at Unicorn Growth Capital, underscored the imperative of fintech for Africa’s economic growth, stressing that such programs provide essential training and support for early-stage fintech companies to boost the continent's digital economy.

Adedeji Olowe, Founder & CEO of Lendsqr and a Trustee with Open Banking Nigeria, highlighted AWS's significant impact on the startup ecosystem. He pointed out that AWS's secure and flexible cloud infrastructure allows startups to concentrate on developing innovative products, which is crucial for attracting VC funding. Olowe stated that over 90% of startups he knows created their Minimum Viable Product (MVP) on AWS, utilizing products like Compute and Amazon SageMaker to build fast-scaling solutions that investors are keen to back. He expressed excitement about providing expertise to young startups through the program.

Africa’s fintech ecosystem is recognized as one of the fastest-growing globally, having reached a valuation of $2 billion in 2022, according to data from Briter Bridges. Furthermore, six out of the continent's seven unicorns operate within the financial services industry, underscoring the sector's rapid expansion and potential. AWS continues to expand its investments in innovative startups, particularly in Africa, building on its history of accelerator programs that began in 2016 with a focus on conversational AI. The company views the startup ecosystem as a catalyst for innovation, including in AI, and aims to support top Generative AI companies globally, while this specific program nurtures fintech innovation.

The AWS FinTech Africa Accelerator is supported by a robust network of major players in the African financial technology industry. These include the Africa Fintech Summit, Unicorn Growth Capital, Lateral Frontiers VC, First Circle, Dawn Capital, White Star Capital, Blackfin Capital Partners, Vestbee, Alma Angels, Flashpoint Venture Capital, Vertis Capital, Next Road Ventures, Afrolynk, Stripe, Zendesk Startups, Techcabal, Paga, Lendsqr, and Conduit.