How Emerging Markets Are Outpacing Traditional Tech Hubs Through Fintech, AI, Climate Innovations, and Digital Inclusion
According to “The State of the Industry Report on Mobile Money 2025,” GSM report, in 2024, the global mobile money market was dominated by Africa, both in value and volume. GSMA is the pioneer global association for the world’s mobile network operators.
In 2024, for example, the global mobile money transactions industry maintained its strong growth trajectory, largely fueled by robust expansion recorded in Sub-Saharan Africa, the Pacific, and East Asia. The GSM report shows that in 2024, Africa’s mobile money services handled over $1.100 trillion, marking a 15% increase compared to the preceding year.
Also, Africa holds 53% of global mobile money accounts. The continent had, by the end of 2024, 1.1 billion registered accounts out of the 2.1 billion accounts held globally, marking a 19% rise from the figures recorded in 2023. This also compares favorably to a 14% increase recorded globally for the same year.
What is Driving This Global Tech Power Shift
Traditionally, the world has tended to focus on Europe and America’s Silicon Valley and other developed regions in Asia as technology hubs. Now the world is witnessing a global tech power shift from other directions in Africa, Latin America, and Asia. These emerging markets are now dominant technological centers developing innovative digital solutions that address complex local challenges at a scalable level.
There are several reasons behind this global tech power shift:
1. Africa’s Expanding Workforce
Africa’s median age stands at 19.7. In comparison, Asia’s median age is 32 while Europe’s stands at 42.5. This youthful African population and a rapidly growing working population provide a rich pool of talent for unique global businesses.
Sub-Saharan Africa alone has over 341 million people in the working-age group, a number that is projected to increase significantly over the next decade. Also, this population surge ensures a steady supply of working-age individuals for decades to come, thus offering stability to many aging global economies in the West that are encountering declining birth rates.
2. Increased Investments in Education
Increasing investments in science, technology, engineering, and mathematics (STEM) education, vocational training, technical and digital literacy means that African countries can meet the rapidly evolving labor demands in sectors such as healthcare, technology, and manufacturing.
3. Rich Diversity of Thought
Shaped by rich and diverse socioeconomic, educational, and cultural backgrounds, tech professionals in Africa bring unique perspectives. This unique blend of diversity fosters innovation and creative problem-solving, enabling individuals and teams to approach challenges from different perspectives. African developers have, for instance, been at the forefront when it comes to addressing connectivity challenges through developing mobile-first solutions that also resonate internationally, like Kenya’s M-Pesa.
Cities in Africa, such as Nairobi, Cape Town, and Lagos, have become global tech hotspots that draw global attention because of their expanding innovation ecosystems. Tech giants like Google and Microsoft recognize what these vibrant ecosystems can offer and are investing in such tech hubs.
4. Availability of Remote Work Opportunities
African tech talent offers innovative solutions, fresh perspectives, and resilience, and has become a force to be reckoned with internationally. The world is increasingly adapting to remote working, which offers tech professionals in Africa access to unprecedented work opportunities.
Companies in North America and Europe are turning to African remote workers to meet part time staffing needs.
Several factors are driving this shift. These include people proficient in multiple languages, competitive labor costs, and overlapping time zones around the globe. Most importantly, remote work reduces geographical barriers, which allows talented individuals from underserved African locations to access rewarding working opportunities.
5. Growth and Investment Momentum
According to a Partech Africa Tech Report, in 2024, African tech start-ups secured $3.2 billion in funding. However, although startups in the US might have raised much more than those in Africa, the continent’s funding has grown over 150% since 2020, signaling momentum.
Africa’s Innovation Landscape
Developers in Africa are addressing some of the critical financial and payment inclusion challenges. Innovative solutions in the mobile money services sector, such as Kenya’s M-Pesa, have transformed the global financial landscape and influenced similar service models in Latin America and Asia. These innovations now offer scalable frameworks that help tackle global payment bottlenecks and have the potential to disrupt traditional and legacy banking systems.
Top 5 African Startups to Watch
By nurturing innovative ventures, African developers are creating solutions for local challenges that also contribute to global technology advancements, innovation, sustainability, and inclusion. Some of the leading startups that have now taken root include the following.
1. M-Pesa
In Kenya, M-Pesa provides ordinary mobile phone users with convenient payment services, including bill payments, money transfers, and credit access without the need to have bank accounts. Nick Hughes and Susie Lonie led the team set up by telecoms giants Safaricom and Vodafone to conceptualize and scale M-Pesa.
The leapfrogging approach adopted by Safaricom has increased digital accessibility while at the same time creating an innovative mindset which focuses on simplicity, affordability, and scaling. Since its inception in 2007, this mobile money project has transformed the lives of millions, not just in Kenya and East Africa but globally. 18 years since it was launched, Safaricom boasts of over 35 million active subscribers.
2. Solar Freeze
Also in Kenya, renewable energy initiatives like Solar Freeze in Kenya has demonstrated the ability of youth in Africa to tackle critical growing global challenges like climate change. Through cash payments and mobile money transactions like M-Pesa, traders and smallholder farmers can locate the nearest cold storage, providing a convenient storage solution for fresh produce. Solar Freeze offers cost savings in food storage and physical space.
The young innovators behind Solar Freeze have benefited from platforms like Tony Elumelu Foundation’s Entrepreneurship Program, the University of California, Mandela Washington Fellowship for Young African Leaders for business training, mentorship, and seed funding.
3. DataProphet
DataProphet in South Africa leverages AI-driven predictive analytics to improve efficiency in manufacturing. The startup was founded by Daniel Schwartzkopff (Co-Founder & Director at DataProphet) and Frans Cronje and collaborates with global automotive and industrial manufacturers. It helps them reduce product defects, minimize waste, and optimize production.
4. DrugStoc
Each year, hundreds of people in Africa die due to substandard, non-regulated, and counterfeit medicines. Nigeria’s DrugStoc attempts to fix that problem. Founded by Chibuzo Opara and Adham Yehia in 2015, DrugStoc leverages technology to facilitate a safer interface between the pharmaceutical and medical communities.
5. Halan
In the logistics and transportation market, Egyptian startup Halan has developed a mobile app that allows people to order motorcycles and tuk-tuks (small 3-wheeler trucks) digitally. Ahmed Mohsen, Mounir Nakhla, and Mohamed Aboulnaga founded this project in 2017.
Challenges and Opportunities in Africa
Although some challenges still persist, with improved digital infrastructure and internet connectivity supported by most African governments, talented individuals are now able to seamlessly collaborate with diverse global teams and organizations.
Overcoming Infrastructure Barriers
Infrastructure gaps in many Latin American countries pose serious challenges to talent development. These include limited access to reliable internet and electricity connectivity. While governments must continue to provide supportive infrastructure, private organizations and development partners must invest more in these critical areas to ensure Africans thrive globally.
Initiatives like the Desert to Power project by the African Development Bank aim to enhance power connectivity and provide sustainable energy solutions.
Tackling Gender and Employment Disparities
In many parts of Africa, gender disparities in employment and education persist. To unlock Africa’s full potential, it is important to empower women through education, mentorship, and entrepreneurship training. Initiatives like SheTrades Africa are making inroads by connecting women entrepreneurs and traders with potential global markets.
LATAM’s Technology Landscape
The demand for tech professionals in LATAM is fueled by a strong local demand and support from big technology companies in the region. An important factor that makes LATAM particularly attractive within the global tech ecosystem is perhaps its unique position as it lies at the intersection of emerging markets and Western perspectives.
Often, Latin American tech companies develop solutions that not only address common challenges faced by developing economies but can also be scaled globally. This has created innovations with worldwide applicability.
1. Growing Professional Talent Pool
The region’s technical schools and universities have increasingly focused on software engineering, computer science, and related disciplines, and have produced graduates who can tackle complex technical local, and global challenges.
Beyond traditional classroom education, these developments have created alternative pathways into the tech industry, bringing fresh perspectives and talent. This has helped democratize access to more tech careers.
2. Investment in STEM Education
STEM enrollment is increasing in Latin American nations. Nearly 30% of graduates in Peru choose STEM courses, a statistic that compares well with South Korea. At 25%, Mexico nearly aligns with Israel and Switzerland. Other countries in the region, such as El Salvador, Chile, and Ecuador, are also doing well, as they range between 20 and 24%, which is higher than in the US.
Governments in LATAM countries are making significant investments in technology entrepreneurship and STEM training, leading to improved infrastructure and better curricula.
3. Supportive Legal and Policy Framework
LATAM governments have recognized technology as a strategic investment priority and implemented policies to support the growth of this vital sector. Brazil’s startup law, Colombia’s Orange Economy initiative, and Mexico’s tech hubs program are examples of how public policy can be used to spur tech development. These programs have created supportive ecosystems for tech growth, reduced barriers to entrepreneurship, and aligned industry needs with educational outcomes.
Several LATAM governments have implemented measures and policies that facilitate new business openings as well as intellectual property protection. Other incentives include co-funding, public-private partnerships, tax exemptions on imported software development materials, tax deductibility on royalties, technology transfers, licenses, favorable real estate leases, and free trade zones.
4. Investment Boom
Capital flows into the LATAM tech sector are reaching unprecedented levels, effectively propelling growth across the entire ecosystem. The diversity of funding spans fintech, ecommerce, healthtech, and enterprise software companies, which demonstrates the breadth of tech innovation taking place in LATAM. The days when entrepreneurs in the region had to relocate to Silicon Valley in the US to raise funding are now history.
Top 5 LATAM Startups to Watch
In Latin America, tech hubs are at the forefront of tech transformation being witnessed in the region. The favorable environment has nurtured many new developers and startups, including the following 5.
1. Nubank
A fintech company known as Nubank has revolutionized the banking sector in LATAM. Nubank was founded in 2013 and became one of the largest digital banks in the world, with a valuation that surpasses many traditional banking and financial institutions. This success story exemplifies how entrepreneurs in Latin America are leveraging emerging technology to create solutions that help solve deeply entrenched problems. Cristina Junqueira (Brazil), David Vélez (Colombia), and Edward Wible from America are the names behind Nubank.
2. Altscore.ai
Altscore.ai is a unique startup in the fintech innovation arena. Co-founded by Ecuadorian entrepreneurs Mateo Semerene and Andres Perez Romo Leroux, Altscore.ai leverages AI to analyze non-traditional data sources to facilitate millions of underbanked individuals’ access to previously out-of-reach financial services. This has created a more equitable society.
3. Kilimo
Climatech is gaining momentum in Latin America. One notable example in the Climatech sector is Kilimo, which leverages artificial intelligence (AI) to create affordable water usage solutions.
Kilimo leverages artificial intelligence to gather weather information from public sources to equip local farmers with data-driven advice on crop irrigation.
Additionally, Kilimo designs and sets up advanced irrigation systems to reduce water wastage and, through regenerative farming techniques, helps improve soil health. Headquartered in Argentina, Kilimo serves farmers in Peru, Brazil, Chile, and other LATAM countries.
4. Frete.com
Valued at over, Frete.com is a leading freight trucking company in Brazil and beyond. With a value estimated at US$1 billion, it was founded by Federico Vega in 2021. By digitizing the connection of freight to trucks, Frete.com seeks to eliminate freight inefficiencies in the region. This generates transportation cost savings for the 615,000 active truck drivers who have joined Frete.com. About 40% of Brazil’s truck fleet is members of Frete.com.
5. Pura Mente
Pura Mente, a mindfulness and meditation app, was founded in Argentina. It works to improve mental health by enhancing sleep quality and reducing stress. The app is available in Spanish and was launched in 2019 with over one million users. Tech entrepreneurs Juan Hardoy, Martín Becerra, and Nahuel Becerra are the co-founders of this app.
Latin America’s Challenges and Opportunities
Despite the many factors that drive the tech shift to Latin America and many leading startups, the region’s digital revolution still faces significant challenges.
i. Infrastructure Deficiencies
Although the region has made tremendous strides in internet connectivity, a major hurdle is still cost and access, particularly in rural areas. This limits digital inclusion and limits the potential of tech transformation.
ii. Shortage of Skilled Workforce Training
Although LATAM countries are making impressive progress in terms of tech professionals, the region still suffers from a shortage of professionals with technology expertise in industrial operations who can also train new entrants into the tech field.
iii. Regulatory Fragmentation
Each country within the LATAM region has its own distinct policies for issues such as data protection/privacy, taxation, energy, and telecommunications. This may make entry a bit complicated and time-consuming for a tech company wishing to operate in or enter the region.
iv. Economic and Political Instability
Some Latin American countries often experience economic volatility and political instability. This can hinder growth as it discourages investment in the technology sector.
v. Socioeconomic Inequality
Inequality, poverty, and limited access to healthcare and quality education continue to be major obstacles in the region. These factors may worsen the digital divide, thus creating barriers to easy access to technology for some communities.
To overcome these challenges, LATAM countries must not only plan carefully but also choose tech partners with international experience that can be adapted to local realities. Governments and private organizations must work together to overcome the legal and infrastructure gaps if they are to leverage the global tech power shift that is taking place. At the same time, they must avoid risks such as underemployment and youth unemployment, which are often associated with technology adoption.
Conclusion
Africa and LATAM countries are leading the global tech power shift and are now major innovation hubs. With booming industries like fintech, AI, climate tech, and mobile innovation, these regions are not witnessing growth but are also ripe for additional investment and global partnership. Startups in these regions are thriving, powered by growing global attention and homegrown tech talent.
The future of technology favors visionaries who recognize and seize the opportunity. This is perhaps the best time to invest in the incredible potential offered by the burgeoning LATAM tech ecosystems.
For more insights and updates on global business trends, visit nextbusiness24.com
Written by : Sammy Mwatha, Expert Author
Sammy Mwatha is a skilled content writer who blends business, tech, health, and lifestyle topics with analytical, story-driven insights.
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