According to a study of fintech locations of the future (2019/20) by fDi Markets, Nairobi ranks 8th in the Cost-Effectiveness Category and the only African city to be listed in the inaugural study.
The study looked at factors such as the annual rent for prime Grade A office space, average salary for skilled worker, 4 & 5-star hotels in the city and corporation tax as some of the factors influencing investors to consider cities in this category.
Others were; the cost of establishing a business, cost of registering property and common indirect tax/VAT.
About 100 Fintech startups in Kenya attracted investors between 2017 and 2019, according to a report by Disrupt Africa.
Sofia (Bulgaria), Vilnius (Lithuania) and Bucharest (Romania) topped this category.
Other categories included in the study published mid-august are; FDI performance, connectivity, economic potential and innovation & attractiveness.
London was ranked first in three of the categories and the overall top city of the future 2019/20.
The UK capital attracted 156 inward fintech investment projects between 2014 and 2018, the highest of all cities included in the analysis. It also tops the FDI Performance category.
London attracted almost 50% more fintech projects than its closest competitor, Singapore, and brought in the highest number of fintech co-location and expansion projects (25).
City-state Singapore is in second position overall. It attracted $1.74bn in fintech capital investment between 2014 and 2018, the largest amount of all the locations analysed.
Data from fDi Markets shows that 2018 was a bumper year for Singapore’s fintech FDI, welcoming its largest number of fintech projects (28), investment ($533.6m) and jobs (1011) since records began in 2003.