Author: Fintechnews Africa

The banking industry stands at the brink of a major transformation, driven by rapid technological advancements and changing customer expectations in a dynamic digital landscape. This transformation is not without its challenges, as banks grapple with the critical task of bridging the gap between traditional banking services and the demands of a digital-first customer base.  Factors such as the unbanked population, system outages, cybersecurity threats, and the rise of fintechs pose significant barriers to this connection, underscoring the urgent need for banks to fortify their operational resilience (OpRes) and Information Technology resilience (ItRes).  In this context, the notion of resilience…

Africa and the Middle East boast 12 prominent e-wallets. These platforms are primarily provided by telecom companies, enable users to varied operations from the mobile phones, including payments, money transfers and remittances, and are gaining ground at a fast pace, a market analysis by financial data company FXC Intelligence reveals. The report, titled “The state of e-wallets: Africa and the Middle East”, looks at the e-wallet market in Africa and the Middle East, identifying the main players and exploring their offerings. It highlights the region’s significant population of unbanked individuals alongside the increasing prevalence of mobile phones, which is fueling…

Flutterwave has announced the appointment of Dipo Fatokun as the new Chairman of Flutterwave Technologies Solutions Limited. He brings a comprehensive regulatory understanding and supervisory experience to solidify Flutterwave’s dedication to upholding the highest regulatory, compliance, and governance standards. Mr Fatokun’s over 30 years of experience covers multiple competencies in banking services, finance, strategy, advisory, leadership, and management in both the public and private sectors. As a Director at CBN, oversaw key initiatives such as the Cashless Nigeria Initiative, the Bank Verification Number project, and the Treasury Single Account (TSA) for the Federal Government and automating the foreign currency payments…

Africa is emerging as one of the fastest-growing fintech markets globally. With half of the world’s mobile money accounts and successful fintech solutions like M-Pesa catering to the population’s needs, Africa’s fintech sector is blossoming. The continent is currently home to approximately 1,000 fintech companies, with about half having been founded since 2017, data from the Boston Consulting Group (BCG) show. Payment stands as the primary focus of the ecosystem, but other verticals, including accounts and lending, are establishing themselves at a fast pace. Cumulatively, these companies have raised US$6 billion in equity financing since 2000, and investments have risen…

Despite M-Pesa appearing to emulate the operations of a bank, its true advantage lies in its distinct identity as a non-bank organization. This characteristic gives it an edge over competitors by enabling accelerated growth and by allowing it to respond swiftly to changing market dynamics, a new analysis by Tech Safari, a popular newsletter focusing on Africa’s tech and startup ecosystem, says. The blog post, written by bloggers Caleb Maru and Mercy Awiti and published on February 21, 2024, explores the evolving landscape of mobile financial services in Africa and highlights M-Pesa’s remarkable growth in the sector. M-Pesa is a…

South Africa is the latest country on the African continent to be jumping on the digital nomad bandwagon, joining jurisdictions such as Namibia, Mauritius and Cape Verde with a proposed immigration program targeting remote workers. Earlier this month, the South African government published draft regulations for a digital nomad visa, inviting the public to share feedback and comments that will shape the eventual forthcoming visa program. The move aims to boost tourism and investment and attract skilled foreign nationals to grow the economy. The draft proposes a set of amendments that would overhaul immigration regulations. In particular, it proposes the…

Partech, the global technology investment firm, announced the final closing of its second Africa fund, Partech Africa II, at a hard cap of €280M ($300M+), opens a new office in Lagos and is looking to hire more team members. Following a strong first closing announced last year, Partech Africa II, has reached its final closing at €280M ($300M+) with all major investors from its predecessor fund but also top tier investors making their first commitment into the Partech Africa platform and into the African VC ecosystem. This oversubscribed final closing has provided the opportunity to attract new categories of global…

10x Banking, the transformational cloud-native SaaS core bank operating system founded by former Barclays CEO Antony Jenkins, has announced a partnership with Old Mutual as it expands into Africa and scales its evolving core banking system into new markets in response to growing demand. 10x’s expansion into Africa, starting in South Africa, will see its solution used by major financial services companies, including Old Mutual, Africa’s second largest financial institution, to develop new products that will drive financial inclusion for unbanked populations – a move that closely follows its launch in Australia and New Zealand last year. Further afield, 10x…

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…

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…

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…

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…

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,…

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…

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…

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…

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…

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…

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…

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…