The evolution of the Fintech entrepreneurial ecosystem in Africa: An exploratory study and model for future development

Abstract

Despite Africa's leadership in mobile money innovation and an increasing level of Fintech entrepreneurial activity, Africa's Fintech ecosystem trajectory is under-represented in the literature. This study is set out to redress this anomaly while addressing the tensions on the role of history, and adaptability in entrepreneurial ecosystem research. We draw upon the Fintech and the entrepreneurial ecosystem literature, analyze the views of practitioners, and apply temporal bracketing to reconstruct the historical context and three phases of the African Fintech ecosystem evolution over a decade: mobile money, digital finance, and innovative Fintech. Based on the results, we develop a model that explains the metamorphosis of entrepreneurial ecosystems. The study contributes an African narrative to the descriptive and explanatory knowledge of Fintech. By showing how Africa's Fintech entrepreneurial ecosystem has evolved, the study also contributes to the entrepreneurial ecosystems research that has thus far focused more on place, actors, and governance than evolution. Our model adds a dynamic perspective to the theorization of Fintech ecosystems and extends the existing literature by taking a historical and longitudinal foresight. Practitioners can apply the lessons to enhance polices that support future Fintech entrepreneurship.