Author: Fintechnews Africa

10 Startups Dominate 75% of Fintech Equity Funding in 2023, Raising a Combined US$675 Million

In 2023, 75% of all equity funding secured by African fintech startups went to ten companies. These firms, which span categories including digital banking and payments, raised a cumulated US$673 million in the top ten fintech equity rounds of 2023, new data released by Afridigest, a media and information services platform focusing on the African continent, reveal. African fintech startups raised a total US$1.55 billion in capital in 2023, with 58% of that amount (US$900 million) going towards equity financing. Much of that sum went to fast-growing fintech startups, with MNT-Halan, TymeBank and Moove securing the three largest rounds of…

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The E-Invoicing Exchange Summit: Harnessing Global E-Invoicing Best Practices for the Middle East

Governments and tax authorities are driving the need for businesses to adopt E-Invoicing across the globe. As more countries across the Middle East mandate E-Invoicing, tax becomes an integral part of day-to-day finance and commercial operations. In the United Arab Emirates, the Ministry of Finance is set to introduce the “E-Billing System” project, which envisions the implementation of an advanced nationwide electronic billing system. This initiative is expected to incorporate the Peppol CTC mandate, addressing nationwide E-Invoicing and E-Reporting requirements. Additionally, the system will automate tax return filing procedures, enhancing the efficiency of the tax system, promoting tax compliance, and…

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Top Nigerian Fintech Products According to The Nigerian Tech Ecosystem Movie

On December 20, 2023, Peace Itimi, the host of Founders Connect, a YouTube show that interviews up-and-coming entrepreneurs in the African startup landscape, premiered a new documentary spotlighting the Nigerian tech ecosystem. The documentary, titled “Innovating Africa: The Rise of Tech in Nigeria”, delves into the evolution of the ecosystem over the past 15 years, featuring key insights from prominent industry players including Oo Nwoye, Kola Aina, Odun Eweniyi, Adia Sowho, Tomi Davies, Jason Njoku, and Iyin Aboyeji. It explores the rapid ascent of Nigeria’s tech ecosystem, showcasing its growth and highlighting the most pivotal moments and policies that have…

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Middle Eastern and African Region Sees Burgeoning Neobanking Sector Picking up Steam

Though still in their early stages of development compared to Europe and the US, neobanks are playing a growing role in the Middle East and Africa (MEA) region by addressing challenges in accessing traditional financial services. The Fintech Times identified 45 neobanks in the MEA region, comprising mostly of digital banking arms launched by traditional banks. This trend reveals that traditional banks in Africa are adapting to consumers’ changing preferences and technological advancements with digital banking solutions of their own. Examples include Emirates NBD’s Liv, Mashreq Bank’s Mashreq Neo, ADCB’s Hayyak, Leumi Bank’s Pepper, ABC Bank’s ila Bank, Gulf International…

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IFC Invests in New Apis Fund to Support Mid-Cap Companies and Improve Financial Inclusion Across Africa and Asia

IFC announced an investment in a new fund by Apis Partners LLP, a private equity firm, to help innovative mid-cap financial service providers expand and boost financial inclusion among individuals and micro, small, and medium-sized enterprises across Africa, South Asia, and Southeast Asia. IFC is making a $75 million equity investment in Apis Growth Markets Fund III, which will focus on fast-growing companies that are using technological innovations to expand access to financial services. These innovations include embedded finance, which allows non-financial companies like retailers to offer financial products and services, commerce enablement, which supports areas such as online payments,…

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Yellow Card Is the First Fintech in Africa to Launch PayPal USD (PYUSD)

Yellow Card becomes the first fintech on the continent to launch PayPal USD (PYUSD). This new stablecoin from PayPal, issued by Paxos, will open new horizons for digital financial transactions between Africa and the United States. Crypto adoption in Africa is booming – according to a report by Chainalysis, between 2020 and 2021 the crypto market on the continent grew by over 1200% (to $106 billion). Nigeria, Morocco and Kenya rank in the global top 20 for crypto adoption. A large part of the reason for this growth can be attributed to stablecoins, which have gained popularity with both beginners…

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Africa's SuperApp Gozem Goes Fintech With Acquisition of Benin

Gozem, Africa’s Super App, announced its acquisition of Moneex, an innovative Fintech app from Benin dedicated to provide global banking to African businesses and consumers. This transaction combines the strength of Gozem’s Super App network with the breadth of Moneex’s fintech capabilities, creating an unparalleled Fintech starting point for the Gozem Group. Founded in 2021 in Cotonou (back then Known as Kryptonite Africa), Moneex was first dedicated to facilitating remittance between Europe and Benin using cryptocurrencies. But very quickly, the company pivoted in 2022 to become Moneex after identifying the bigger problem of African businesses and individuals not having access…

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Unlocking the Future of Consumer Lending with AI and Automation

With the ever-evolving landscape of financial technology, consumer lending has never been more accessible and efficient – in large part, due to fintech innovation. With a global consumer credit market size of US$11 billion, rapidly growing middle classes in emerging markets, and economic uncertainty affecting us all, the opportunity for lenders to tap into the consumer need for credit is immense. Competition is stiff, so consumers have the luxury of choice for their lending products – it’s up to lenders to provide fast approvals and simplified processes to reduce abandonment and improve customer experience and competitive advantage. With ever-changing regulations…

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Africa and Gulf Bank Selects Temenos to Deliver Digital Transformation on the Cloud

Temenos announced that Africa and Gulf Bank (AGB), one of the progressive banks in Sudan, has selected Temenos to modernize its digital and core banking capabilities. The Temenos solution, hosted on the cloud, will enable AGB to provide products faster to retail and corporate customers in Sudan and around the world. Having acquired Sudan based operations of a major Gulf Corporation Council (GCC) bank, AGB commenced operations in late 2021. AGB has ambitious growth plans as it seeks to bring innovative Sharia-compliant products for its customers within Sudan and internationally to the Sudanese diaspora. AGB has a customer-centric, digital-first business…

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Despite Growth and Potential, Fintech Development Faces Challenges in Nigeria

In Nigeria, the fintech industry has expanded well beyond payment services to now encompass a wide range of segments, including regulatory compliance, credit and blockchain. This growth has been driven by mass adoption of digital financial services and increased collaboration within the sector to facilitate innovation. But despite the strong growth that the Nigerian fintech industry has witnessed so far and the immense potential of the space to address financial and societal challenges, a number of obstacles are impacting the growth of sector in the country, including regulatory issues, infrastructure, investment funds, data security, and consumer management. This is one…

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His Excellency President Paul Kagame to Open MWC Kigali 2023

The GSMA announced that His Excellency Paul Kagame, the President of the Republic of Rwanda, will formally open MWC Kigali on 17 October at the Kigali Convention Centre, Kigali, Rwanda. “It is a great honour for His Excellency Paul Kagame to open MWC Kigali 2023; his participation is a mark of how Africa’s digital transformation journey is gaining momentum and empowering communities, government and businesses. As 4G moves forward and 5G emerges, frontier technologies offer huge potential and fintech continues to connect millions within the formal economy for the first time. I am looking forward to three days of debate…

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IFC Invests in New Leapfrog Fund to Bolster Growth of Health and Financial Services Businesses Across Africa and Asia

IFC announced an investment in a new fund by LeapFrog Investments, one of the largest private equity groups dedicated to impact investing in emerging markets, to improve fast-growing health and financial services firms’ access to growth capital and support job creation in Africa, South Asia, and Southeast Asia, IFC is making a $50 million equity investment in LeapFrog Emerging Consumer Fund IV LP, which targets $1 billion in commitments and will represent the largest offering by LeapFrog to date. IFC’s investment in the fund will be made along with an additional $50 million, which will allow IFC to selectively invest…

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eKYC in Africa

In the first half of 2023, businesses in Africa embraced digital transformation at a fast pace, fueling demand for innovative e-KYC verification solutions. This is evidenced by the surge in activity observed by Smile ID, the identity verification solutions provider says in a new report. In Smile ID’s State of KYC in Africa H1 2023 report, the company looks back at fraud attempts it saw during the first half of the year, sharing insights into the evolving know-your-customer (KYC) landscape in Africa and delving into the state of identity verification across various countries and emerging fraud trends. Smile ID reported…

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Financial Inclusion Improves in Tanzania, Facilitated by Mobile Money

In Tanzania, financial inclusion is improving at a rapid pace, facilitated by the proliferation of mobile phones and a significant uptake in mobile money services usage in the country, a 2023 study by Financial Sector Deepening Tanzania (FSDT), a local organization supporting the development of the financial sector and access to financial services, shows. The 2023 FinScope Tanzania study, a consumer survey on Tanzanian adults’ financial needs, preferences and behaviors, revealed that formal financial inclusion in the Eastern African country has increased considerably over the past years, rising 12% points from 65% in 2017 to 76% in 2023. This was…

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5 Agri-Fintech Startups from East and Southern Africa to Know

In recent years, the emergence of agritech and fintech providers in East and Southern Africa (ESA) has brought about innovative solutions designed to address the needs and challenges of smallholder farmers and underserved groups. A new report released in May 2023 by the United Nations’ International Fund for Agricultural Development (IFAD) examines this landscape, analysing the myriad of agritech and fintech companies operating in the region and the innovations that these providers have introduced to the market. A mapping and analysis of tech solution providers in the ESA agricultural value chain reveals that pure agritech solutions currently make up most…

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LeaseSurance, a South African Insuretech platform underwritten by Bryte, has successfully raised R3million in a seed financing round led by Fedgroup Private Capital. The funding will be instrumental in advancing LeaseSurance’s mission of enhancing the real estate ecosystem through its innovative lease insurance offering by expanding its team, and further developing cutting-edge technology solutions for the industry. LeaseSurance offers lease insurance for some of South Africa’s leading residential operators and asset owners. The product has benefits for tenants and landlords alike, especially in a country characterised by low GDP growth, high unemployment, high inflation and interest rates – all of…

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Crypto Market on the Rise in Africa Amid Rising Usage of Blockchain-Based Payments

Africa’s cryptocurrency market is surging on the back of booming usage of blockchain-based payments across the region. Use cases including remittances, supply chain financing, digital identity verification, and peer-to-peer (P2P) lending, a new report produced by Finextra in association with Kora, a pan-African payment infrastructure company from Canada, says. The Future of Fintech in Africa 2023 report, released in August, compiles expert insights from a range of firms including Binance, Jumo, TymeBank and Yoco, to provide predictions for the future of fintech in the region. In particular, the report discusses the surge of Africa’s crypto market despite it being among…

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LemFi (former Lemonade Finance), a Canada based fintech platform transforming financial services for immigrants, has raised a $33 million Series A round led by Left Lane Capital. Other investors included Y-Combinator, Zrosk, Global Founders Capital, and Olive Tree. Each year, millions of immigrants move abroad to start new lives, and the biggest hurdle they face is access to financial services. In 2020, Founders Ridwan Olalere and Rian Cochran joined forces to solve these challenges with a vision to build a platform that empowers the next generation of immigrants. Olalere and Cochran first met while building OPay – one of Africa’s…

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Top 9 Upcoming Fintech Events in Africa

Fintech in Africa has witnessed significant growth and dynamism in recent years, driven by a combination of favorable demographic, economic and technological factors. Between 2017, the number of fintech startups active in the continent increased by 125.2% to reach 678 ventures, according to the latest edition of Disrupt Africa’s Finnovating for Africa report. At the same time, venture capital (VC) financing in Sub-Saharan Africa is soaring, growing by a staggering 894% year-over-year to US$1.6 billion in 2021, research by Magnitt, a platform for VC data in the Middle East, Africa, Pakistan and Turkey, show. Experts and industry observers predict further…

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Paris Saint-Germain and Yassir Sign Global Partnership

Football club Paris Saint-Germain and Yassir, the Super-App offering on-demand and payment services in North Africa announced the signing of a global partnership for three seasons with the aim of further developing the Yassir brand on the international stage. The Yassir online marketplace, which offers transport, delivery, and payment services, chose to team up with Paris Saint-Germain in order to develop its brand worldwide and expand its presence in the seven countries in which it is already established: Algeria, Canada, France, Morocco, Senegal, South Africa and Tunisia. For three seasons, the largest on-demand services and payments company in North Africa…

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