Author: Fintechnews Africa

Kenya has a vibrant fintech ecosystem, driven by a strong mobile money infrastructure, an increasingly digital-savvy population, and a supportive regulatory environment. In 2023, Kenya had 102 fintech companies, making up 15% of Africa’s fintech startups, according to Disrupt Africa’s Finnovating for Africa 2023 report. This ranks Kenya as the third-largest fintech market in the region, following Nigeria with 217 startups (32% market share) and South Africa with 140 startups (20.6% share). Within Kenya’s burgeoning fintech landscape, several ventures have emerged as category leaders, recording substantial growth and garnering investor attention. Today, we look at some of Kenya’s most successful…

South Africa’s fintech sector is rapidly growing, attracting significant investment and positioning the country as a leader in African financial innovation. In 2023, South Africa was the top destination for venture capital (VC) investment in Africa, securing US$548 million secured through 83 deals, according to Partech Partners’ 2023 Africa Tech Venture Capital report. The sum made South Africa the leading country on the continent in terms of equity funding. That year, fintech retained the leading position in VC funding, accounting for 24% of all deals and 37% of total VC funding in the region. This trend was particularly evident in…

In June 2021, the Tanzania Startup Association (TSA) co-hosted a Public-Pricate Dialogue in collaboration with the Ministry of Information, Communications, and Information Technology (MICIT). This event brought together government ministries, departments, and agencies, alongside startup companies, incubators, accelerators, and other key stakeholders from the startup ecosystem. The dialogue, chaired by former Minister of Information, Communications, and Information Technology, Dr. Faustine Ndugulile, focused on identifying the critical challenges facing startups and developing actionable strategies to address these issues. National Framework for Regulatory Sandbox A significant challenge identified during the dialogue was the issue of market access for startups, particularly the regulatory…

Ecobank, the pan-African Bank, has announced the top finalists for the first-ever and inaugural 2024 Ecobank Fintech Challenge Hybrid Semi-Final event held at the Ecobank Pan African Centre in Lagos, Nigeria. The finalists were selected from a cohort of 40  Fintechs that made it to the semi-final stage of the competition. This year’s challenge attracted over 1,550 applications from 70 countries in Africa and other global regions. The finalists will showcase their innovative solutions at the Ecobank Fintech Challenge Grand Finale, scheduled for 27 September 2024, at the Ecobank Pan African Centre in Lomé, Togo. The event will be streamed live on…

In 2024, Africa’s participation in global blockchain deals has significantly grown, underscoring the continent’s emerging influence in the global blockchain industry. In H1 2024, Africa recorded its highest-ever share of blockchain venture capital (VC) rounds, reaching 1.8% of the global deal count, an increase from 1.3% in 2023, according to a new report by CV VC, a Swiss blockchain VC firm. The “African Blockchain Report 2024”, released on July 16, 2024 in partnership with the pan-African bank Absa Group, examines funding activity in Africa and highlights emerging investment trends. The report reveals that not only is Africa increasing in prominence…

In Africa, reliance on technology and digital platforms is rapidly growing. A new survey by Backbase, a Dutch engagement banking platform provider, reveals that banks are prioritizing digital transformation, focusing on enhancing operations and integrating advanced technologies like cloud computing and artificial intelligence (AI) to boost customer satisfaction and accelerate the launch of new products. The study, which polled 155 banks in Africa, reveals that 76% of the respondents view digital transformation as either their biggest or one of the three biggest priorities, showcasing that banks in Africa are recognizing the need to leverage digital technologies to change how their…

The financial sector is on the edge of a major transformation powered by continuous technological advancements. At the recent Huawei HiFS Frontier Forum 2024 in Shenzhen, industry leaders discussed how cloud, network, storage, and computing infrastructures can strengthen financial systems’ resilience. The forum’s theme, “Boost Resilience, Reshaping Smarter Finance Together,” encapsulates the industry’s collective ambition to navigate the challenges of an uncertain future through technological excellence and collaborative innovation. This gathering comes at a pivotal moment. Traditional banking boundaries are dissolving, and the definition of financial services is evolving unprecedentedly. The imperative for digital transformation As we hurtle towards 2030,…

The usage of buy now, pay later (BNPL) services is increasing in South Africa, driven by the country’s large population of financially unserved and underserved consumers, growing e-commerce activity, and challenging economic conditions. A 2023 study by South African payments service provider Stitch, which surveyed over 300 consumers, revealed high usage of BNPL arrangements, with 56.5% of respondents indicating having used it for online purchases, and 41.1% when booking travel online. These results align with data from BNPL provider PayJustNow, which reported a 105.8% year-on-year growth in gross merchandise value in 2023. PayJustNow is one of South Africa’s leading BNPL…

As the global fintech sector expands, the demand for adept and responsive customer support solutions intensifies. South Africa is rapidly establishing itself as a pivotal hub for fintech outsourcing, buoyed by a robust technology sector and a multilingual talent pool proficient in advanced customer service practices. Leading the charge in this dynamic environment is PITON-Global, an esteemed advisory firm that seamlessly connects fintech firms with specialised BPO providers in the region, offering these connections at no cost and with no obligation to the financial technology companies. PITON-Global serves as a strategic intermediary rather than a direct service provider, connecting fintech…

Earlier this month, Amazon launched its South African market, marking the e-commerce giant’s entry into the African market after two years of planning. The move is expected to trigger a pricing war in the domestic e-commerce landscape, benefiting South African consumers with faster deliveries, more products and better support, a new analysis by Tech Safari, a popular newsletter focusing on Africa’s tech and startup ecosystem, says. The blog post, written by Tech Safari writer Sheriff Alimi and founder Caleb Maru, discusses Amazon’s recent launch in South Africa and its implications for the e-commerce market in Africa. It highlights Amazon’s late…

The African tech media industry has evolved greatly over the past decade. Global players like TechCrunch have entered the scene, and local publications like TechCabal have risen to prominence. However, there has been criticism that the media often focuses too much on success stories, neglecting deeper insights into the ecosystem. This has prompted the emergence of a new generation of creators focusing on in-depth coverage and more nuanced reporting, a new analysis by Tech Safari, a popular newsletter focusing on Africa’s tech and startup ecosystem, says. The blog post, written by Tech Safari founder Caleb Maru and South African journalist…

Mastercard and the African Development Bank Group launched the Mobilizing Access to the Digital Economy (MADE) Alliance Africa to extend digital access to critical services to 100 million individuals and businesses in Africa over the next 10 years. The Alliance will initially focus on supporting the agricultural sector and women. Among the first efforts will be a pilot program launching this year to support three million farmers in Kenya, Tanzania and Nigeria by working with local banks to provide digital identities and access to high-quality seeds and agricultural inputs. The Alliance intends to expand to Uganda, Ethiopia, Ghana and the…

Swypex announced its launch following a $4 million seed investment round, led by the renowned venture capital fund Accel. This marks Accel’s first fintech investment in the region. The investment also included participation from Foundation Ventures, The Raba Partnership, and industry-leading angel investors. Licensed by the Central Bank of Egypt, Swypex consolidates payments, invoice management, and smart corporate cards on a unified platform. Their products simplify financial management, empowering businesses to automate financial workflows and make payments with ease. Swypex’s corporate cards are built specifically for Egyptian businesses, designed to reduce costs, elevate operational efficiency, and facilitate scalable growth. According…

Ramses, an American Fintech startup, revealed its strategy for the upcoming period. The Company aims to establish its business model in Egypt and Sudan in 2024, while also focusing on expansion and entering new markets across Africa and the Middle East in 2025. Additionally, Ramses announced that Chris Skinner has joined as a founding partner. This significant announcement was made during a press conference held at the Greek Campus (GC) in Cairo, coinciding with the launch of Chris Skinner’s latest book, “Intelligent Money.” Ramses has set its sights on expanding its business in the upcoming period as a leading provider…

Forbes Middle East has released its annual selection of the Middle East’s top fintech companies, highlighting the 50 biggest and fastest-growing public and private fintech firms in the region. The 2024 Fintech 50 list showcases key players reshaping the fintech sector across the Middle East. These include digital payment providers, open banking platforms, investment and savings apps, and lending services. Payment companies dominate this year’s list with 26 entries, while buy now, pay later (BNPL) platforms continue to gain traction, with prominent players Tabby and Tamara also featured in the list. Among the represented countries, Egypt leads the pack with…

In the Middle East and North Africa (MENA), embedded finance is picking up steam among telcos, tech startups and retailers. These companies are rapidly embracing the concept to tap into new revenue streams and enhance customer experiences, a new report by Mingzulu, a Dubai-based management consulting company, says. Embedded finance, a concept referring to the integration of financial services into non-financial platforms or products, has recorded remarkable growth in recent years, driven by various factors reshaping the financial services landscape including advancements in technology, the rise of open banking initiatives, and consumer demand for seamless experiences across all aspects of…

Bokra, a Cairo-based fintech, announces the closure of its $4.6 million pre-Seed round led by DisrupTech Ventures, and SS Capital alongside other investors. The company aims to revolutionise wealth management in the MENA region by being the first platform to offer goal-based investment and saving products through asset backed securities. On a mission to democratise wealth management, Ayman El-Sawy, an industry veteran, founded Bokra to serve diverse financial goals and empower retail and SME’s investors to seamlessly save and invest across multiple asset classes. Bokra’s team is tackling several challenges facing retailers and SMEs looking to manage their wealth, including…

Tanzania is home to small and nascent fintech sector that comprised just a little over 30 companies in 2021, data from a study conducted by the United Nations Capital Development Fund (UNCDF) show. But despite its relatively small size, the sector is growing at a fast pace and gaining prominence, driven by rapid adoption of mobile money, technological advancements and government support. Between 2014 and 2021, mobile money account ownership in Tanzania increased from 32% of the adult population to 45%, highlighting the rapid uptake of mobile money, data from the UNCDF reveal. This growth has prompted mobile money providers…

German SecurityTech company Giesecke+Devrient (G+D) and Banque Centrale de Mauritanie have signed an agreement during the Spring Meetings of the International Monetary Fund and the World Bank Group to jointly explore the development of a digital form of the national currency Ouguiya. The aim is to further advance the digital transformation of the West African country and promote financial participation among the population. G+D is partnering with the Central Bank of Mauritania to design and introduce a potential Central Bank Digital Currency (CBDC) as a complement to cash. The Governor of the Banque Centrale de Mauritanie Mohamed Lemine Ould Dhehby…

In Nigeria, fintech companies are harnessing sophisticated digital marketing tools to drive growth, enhance brand visibility and build lasting relationships with customers in today’s digital-first world. Recent findings from the Africa Fintech Summit reveal that in 2023, Nigerian fintech enterprises predominantly relied on paid advertising, programmatic advertising, and content marketing as primary channels for customer acquisition. This underscores the strategic emphasis placed by Nigerian fintech firms on digital marketing methodologies, recognizing their effectiveness in efficiently reaching expansive audiences with precision targeting. Released on March 21, the Nigeria Fintech Marketing Outlook 2024 report provides a comprehensive view of the state of…