Kparobo Tobore is a finance and investment expert with extensive experience across several markets in Europe, Middle East and Africa in strategic finance, mergers & acquisitions, and fintech investments. He is currently a Vice President with AlixPartners, focused on business restructuring, liquidity management, and financial turnarounds.

Mr. Tobore has a strong background in investment banking and private equity, led groundbreaking debt and equity financing transactions across Africa while at Atlas Mara group, and executed multiple transactions across consumer goods, manufacturing, and energy while at Citigroup.

He holds an MBA from The Wharton School, University of Pennsylvania, and a Bachelor’s degree in Economics & Statistics from the University of Benin.

In our recent interview with Mr. Tobore, he shared his perspectives on the fintech landscape in Africa and the Middle East, including how fintech is changing the traditional financial institutions do business, the regulatory landscape and market opportunities/key issues to look out for potential investors

Vanguard: Fintech has been revolutionizing financial services across the globe. From your perspective, what are the key investment trends driving fintech growth in Africa and more specifically, Nigeria?

Tobore Kparobo: Africa presents a unique landscape for fintech investments due to its growing middle class, diverse & emerging regulatory environments, economic disparities, and evolving consumer needs. Some key trends include:

1. Digital Banking and Financial Inclusion: Fintech is enabling millions of unbanked and underbanked individuals to access financial services through mobile banking and digital wallets. Traditional banking models cannot scale fast enough to meet the demand in Nigeria, but fintech solutions—especially those leveraging AI and blockchain—are unlocking new ways to serve millions of people.
2. Payments and Remittances: Cross-border transactions are crucial in the region, with several Fintech companies already leveraging blockchain and AI to reduce costs and improve efficiency.
3. Lending and Credit Solutions: Many small and medium-sized enterprises (SMEs) struggle with access to credit, and fintech platforms are stepping in to offer alternative lending solutions.
4. RegTech and Compliance: With evolving regulations, fintech solutions that address compliance, fraud detection, and identity verification are becoming more attractive to investors.
   Interviewer: The fintech market in Africa is growing rapidly. Can you share some insights on its size and the overall opportunity for investors?

Tobore Kparobo: Absolutely. The African fintech market is projected to surpass $200 billion in transaction volume by 2025, with significant growth driven by increasing smartphone penetration, rising digital payments, and a young, tech-savvy population. Africa alone has over 350 million unbanked adults and Nigeria makes up a significant portion of that, presenting a massive opportunity for financial inclusion through fintech solutions.

The Middle East, particularly markets like the UAE and Saudi Arabia, is experiencing a surge in fintech funding, with governments actively supporting digital transformation. Investors who enter early enough and support scalable models can tap into one of the fastest-growing fintech ecosystems globally. The fintech sector in Nigeria particularly has evolved rapidly, mirroring the growth trajectory seen in other high-potential emerging markets.

We are seeing an increased focus on digital banking and alternative lending, which are key to driving financial inclusion. There has been increasing global interest within the space which has been evident in more recent times with the Stripe acquisition of Paystack and recent Flutterwave fundraises.

Vanguard: What are some of the biggest challenges fintech companies face when scaling?

Tobore Kparobo: While the opportunities are vast, fintech companies, particularly in emerging markets like Africa can face several challenges:

1. Regulatory Hurdles: The regulatory landscape is fragmented, with each country enforcing different financial laws. Navigating compliance can be complex and costly.
2. Infrastructure Limitations: In some regions, limited internet penetration and digital literacy pose challenges to adoption.
3. Funding and Capital Access: Many startups struggle with securing the necessary funding, particularly in Africa where venture capital activity is still developing.
4. Trust and Adoption: Convincing consumers and businesses to shift from traditional banking to digital solutions requires strong brand credibility and user education.
5. Cybersecurity Risks: The more digitalized the financial ecosystem becomes, the greater the threat of cyber fraud and data breaches.

Vanguard: How does the regulatory landscape in Africa impact fintech investments, and what should investors be aware of?

Tobore Kparobo: Regulation plays a crucial role in fintech’s success across the globe. Some markets, like the UAE and Saudi Arabia, have fintech-friendly regulatory sandboxes that allow startups to test their solutions in controlled environments. However, other markets, particularly in Africa, still have relatively rigid or outdated financial regulations that can slow down innovation. Regulation is one of the biggest challenges fintech firms face. While frameworks are improving, unpredictable policy shifts can create instability. Investors need to conduct thorough due diligence on local regulations, assess licensing requirements, and engage with regulatory bodies early in the process to ensure compliance. Companies that engage early with regulators and build strong compliance structures will have a significant competitive advantage. Having strong legal and compliance teams in place is also critical for navigating the regulatory landscape effectively.

Vanguard: Given your extensive experience investing in and operating across Africa, what advice would you offer investors looking to enter the fintech space in Africa?

Tobore Kparobo: Investors should approach fintech investing with a combination of strategic patience and local market understanding. My personal recommendations include:

• Conduct Thorough Due Diligence: An investor needs to assess regulatory risks, infrastructure readiness, and market demand before investing.
• Partner with Local Players: This point is very important particularly for international investors. Collaborating with established banks or other financial institutions, telecoms, or government agencies can fast-track market penetration.
• Focus on Scalability: Solutions that can be adapted across multiple markets tend to be more resilient and attractive for long-term growth.
• Monitor Regulatory Trends: Keeping a close eye on evolving financial regulations will help investors anticipate potential hurdles.
• Prioritize Strong Leadership Teams: A fintech company’s success is often tied to the expertise and adaptability of its leadership.
• Invest in Compliance and Cybersecurity: Given the regulatory complexities and rising cyber threats, ensuring compliance and security from the outset can protect against long-term risks.
Vanguard: Looking ahead, how do you see fintech evolving in Nigeria & more broadly Africa and its global impact over the next five years?

Tobore Kparobo: The fintech sector will continue to mature, driven by regulatory advancements, deeper financial inclusion, and technological innovation. Africa has been and will continue to be a testing ground for innovative solutions in mobile money, alternative credit, and AI-driven financial services.

The impact of Nigeria’s fintech sector extends beyond Africa. We are seeing Nigerian fintech firms raising capital from global investors and expanding into markets such as the UAE and the UK. This is just the beginning of a larger shift in Africa’s financial integration with global markets. Additionally, global investors and companies are increasingly looking to the region as a high-growth fintech market, which could lead to more cross-border partnerships and investment flows. AI and blockchain will further revolutionize payment systems, fraud detection, and lending models, making fintech an integral part of daily transactions worldwide.

Vanguard: Thank you, Mr Tobore, for sharing your insights. It’s clear that fintech in Africa is poised to drive both regional and global financial transformation.

Tobore Kparobo: My pleasure. The financial services landscape is evolving rapidly, and I look forward to seeing how fintech continues to shape the future of banking and investments across the region and beyond.