Finance (99)
The Congolese government wants to accelerate financial inclusion by facilitating access to financial services for all segments of the population. To achieve this, it is relying on digital technologies.
The Democratic Republic of Congo (DRC) is moving to digitize its microfinance sector to accelerate financial inclusion. To this end, it awarded on Friday, February 14, a contract to a consortium comprising PAYCODE FINTECH Congo, BANKTECH Software Services, and Hong Kong Top Wise Communications.
Funded by the government and the World Bank, the initiative involves providing 10,000 electronic payment terminals (EPTs) to microfinance institutions (MFIs) and savings and credit cooperatives (COOPECs). This will enable these institutions to connect to the national electronic payment system of the Central Bank of Congo.
The initiative is part of the Transforme Project, which aims to empower women entrepreneurs and upgrade small and medium-sized enterprises (SMEs) for economic transformation and job creation. According to the National Financial Inclusion Strategy 2023-2028, the financial inclusion rate in the DRC stood at 38.5% at the end of 2022. The Congolese government aims to increase this rate to 65% by 2028.
Microfinance institutions and savings and credit cooperatives are expected to play a key role in achieving this goal. By the end of 2022, the DRC had 78 COOPECs and 15 MFIs. These two types of institutions accounted for 86.1% of the country’s credit establishments (108 total) and 32.4% of all financial institutions (287). Additionally, the credit portfolio grew by 21% in 2022, reaching $283.5 million, up from $234.3 million in 2021 and $168 million in 2020. Savings mobilization increased from $256.97 million in 2020 to $333.76 million in 2022, a growth of approximately 30%.
The effective use of the distributed terminals by microfinance institutions and savings and credit cooperatives will be crucial for adoption. The National Financial Inclusion Strategy highlights that their geographic coverage remains uneven. Kinshasa, North Kivu, and South Kivu provinces alone account for nearly 70% of these institutions.
"Despite their higher number compared to banks, microfinance institutions have fewer operational branches (186) than banks (445) and represent only a small share of the financial sector’s assets, around 3%," the strategy document states.
Isaac K. Kassouwi
Edité par Sèna D. B. de Sodji
The country is steadily moving toward a cashless economy. In recent months, authorities have approved the interoperability of bank cards, followed by that of point-of-sale terminals.
Sierra Leone launched its instant payment service on Thursday, enabling real-time transfers between mobile operators, banks, and mobile money and bank accounts. Currently, seven banks and two mobile money service providers are connected to the system, with full integration deadline set for April 1st for all players.
"Today I have a system that is connected to the banks directly, with interoperability, I am going to shut that system down, that is one more cost removed. When our cost of business is reduced that means we can be able to translate it and give the customer a better service," explained Martison Obeng-Agyei, Managing Director of Afrimoney Sierra Leone (Africell).
David Mansaray, CEO of Orange Money Sierra Leone (Orange), believes the initiative will facilitate access to loans and, in the long run, streamline banking operations and business transactions.
This initiative aligns with the Bank of Sierra Leone’s (BSL) vision to modernize the country’s payment system and build a cashless economy. Following the launch of the national payment switch in April 2023, the central bank successively implemented interoperability for bank cards and then for point-of-sale terminals. The next phase will focus on opening an international payment gateway, allowing Sierra Leonean-issued payment cards to be used abroad.
As of December 31, 2023, Sierra Leone had 8.2 million mobile money accounts, including 1.7 million active accounts, according to central bank data. The country also recorded 22.3 million bank accounts, although the number of individuals holding these accounts was not specified. In 2022, the BSL estimated that 29% of the adult population had an account with a financial institution or a mobile money service provider.
By Isaac K. Kassouwi,
Editing by Sèna D. B. de Sodji
Francophone Africa, with its strong economic potential, is emerging as a key attraction for companies seeking new opportunities. Despite its dynamic and rapidly evolving environment, the region remains largely untapped by international startups.
Startbutton, a pan-African fintech company that enables businesses to expand internationally without physical offices, announced on Friday its expansion into seven new Francophone African countries: Benin, Togo, Senegal, Mali, Burkina Faso, Guinea-Conakry, and Cameroon. This move brings the startup's operations to 15 African markets.
Commenting on the expansion, Startbutton co-founder Malick Bolakale stated: “Francophone Africa maintains strong trade ties with Europe, particularly France, creating unique payment flows and business expansion opportunities. The region is less saturated than Anglophone Africa but holds significant economic potential.” This strategic analysis underpins the company’s decision to target the high-growth potential of the Francophone market.
Startbutton’s expansion aligns with its broader goal of becoming a key infrastructure provider for businesses operating across Africa. With over 300 million people, Francophone Africa represents a strategic destination for companies looking to scale. Currently, Startbutton processes over $5 million per month, generating revenue through transaction fees ranging from 0.5% to 1%. With this expansion, the company expects an additional $2 million in transaction volume from Francophone markets.
Despite ongoing challenges related to cross-border payments and regulatory compliance, Startbutton aims to establish itself as a central player in Africa’s evolving commerce landscape by offering local currency payment solutions while ensuring adherence to local regulations.
This expansion is a major asset for payment companies seeking to enter Francophone Africa without the need for physical offices, reducing operational costs while ensuring regulatory compliance. Startbutton already serves over 100 businesses across 20 countries, primarily in aviation, gaming, and e-commerce, facilitating cross-border growth with tailored payment solutions.
By Samira Njoya,
Editing by Sèna D. B. de Sodji
With the ongoing digital transformation, instant payment systems are emerging as key solutions to ensure fast, secure, and accessible transactions. They are essential for modernizing economies and providing more efficient and inclusive banking services.
Somali Prime Minister Hamza Abdi Barre on Wednesday launched the Somali Instant Payment System (SIPS). Developed jointly by the Central Bank of Somalia (CBS) and the Somali Bankers Association, SIPS is designed to facilitate instant, secure, and transparent transactions between local banks.
“For our country to rebuild, we must support the private sector and investment. We are preparing laws to safeguard people’s finances, prevent terrorist funding, and implement government plans that are central to the security, economy, and development of Somali society” said Hamza Abdi Barre during the launch event.
SIPS serves as a centralized platform connecting the CBS and local private banks, enabling real-time money transfers between financial institutions. The system aims to reduce interbank payment delays, eliminate inefficiencies, and minimize the risks associated with cash transactions, which remain prevalent in the country. Key stakeholders include the CBS, which oversees and regulates the system, and private banks, which act as access points for businesses and individuals.
The launch comes as Somalia pursues economic recovery, seeking to modernize its financial infrastructure and promote the digitization of services. By implementing a modern payment system, the Somali government aims to boost investor confidence, strengthen efforts to combat illicit financial practices, and enhance transparency in financial transactions.
With SIPS, Somalia enters a new economic era. The system is expected to not only improve banking efficiency and enhance the competitiveness of local businesses but also contribute to overall economic growth. It paves the way for inclusive prosperity for Somali citizens and lays the foundation for a resilient and innovative economy.
By Samira Njoya,
Editing by Sèna D. B. de Sodji
The Moroccan government aims to accelerate the development of a national digital economy by 2030. A key focus of this initiative is developing the local startup ecosystem.
The Moroccan Ministry of Digital Transition and Administrative Reform announced on Sunday, January 19, the creation of a new association dedicated to advancing fintech in Morocco. Named the "Morocco Fintech Center" (MFC), this association already comprises around 15 banks and institutions and remains open to other organizations interested in joining.
According to Bank Al-Maghrib (BAM), Morocco's central bank, the MFC is designed to serve as a one-stop shop for fintech companies. It will support their growth through mentorship programs, incubation, acceleration, skill development, and facilitate understanding of the regulatory environment as well as access to financing. Additionally, the MFC aims to foster a collaborative fintech ecosystem that encourages partnerships and networking opportunities while promoting research and development in financial innovation.
In December 2024, Abderrahim Bouazza, Director General of BAM, announced plans to launch a fintech hub in January. This initiative aligns with Morocco's ambition to build a globally competitive local startup ecosystem by implementing specific measures to support the creation, growth, and international expansion of digital startups. This effort falls under the second pillar of the "Digital Morocco 2030" strategy, which focuses on energizing the digital economy.
The initiative is expected to play a crucial role in achieving the government's target of fostering 1,000 certified Moroccan startups by 2026 and 3,000 by 2030, compared to just 380 in 2022. By 2030, the goal is to raise 7 billion dirhams ($696.6 million) for local startups, a significant increase from the 260 million dirhams raised in 2022. Furthermore, the government envisions Morocco having 10 "gazelles" (high-growth startups) and one to two unicorns by 2030.
By Isaac K. Kassouwi,
Editing by Sèna D. B. de Sodji
The traditional postal service model has become obsolete with the rapid digital transformation in recent years. To remain competitive and adapt to this new landscape, Mali's postal service has embarked on a transformation and revitalization strategy.
Mali's postal service operator, La Poste du Mali, plans to launch "Post Wari," a digital financial services platform designed to diversify its operations. This initiative is part of the projects outlined by the Ministry of Communication, Digital Economy, and Administrative Modernization in Government News Bulletin No. 249, published on January 10th. The bulletin reviewed the accomplishments of 2024 and detailed the prospects for 2025.
The "Post Wari" platform will facilitate the issuance and management of electronic money, accessible via mobile (app and SMS) and web platforms (tablets and computers). The ministry stated that this platform is expected to become a one-stop payment gateway for government services in the medium term.
Through this initiative, La Poste du Mali aims to capitalize on the opportunities presented by digital technology amidst the growing adoption of mobile money services. According to the Malian Telecommunications, ICT, and Postal Regulatory Authority (AMRTP), the number of mobile money accounts in the country surged from 6.2 million in 2018 to 16.9 million in 2023—a 172.6% increase. The regulator also highlighted that financial inclusion leaped from 47% in 2016 to 72.3% in 2023, largely driven by mobile technology, which now accounts for 55.9% of financial inclusion efforts.
While "Post Wari" has been announced as part of the 2025 outlook, no further details have been provided regarding its launch date or the current stage of development. Furthermore, La Poste du Mali will face stiff competition in a market dominated by telecom operators like Orange. By the end of 2023, Orange Money had 13.1 million subscribers, commanding a 78% market share, according to official statistics.
By Isaac K. Kassouwi
Editing by Sèna D. B. de Sodji
Mobile wallets are rapidly gaining popularity in Africa, offering a viable alternative to traditional banking services for a significant portion of the population that lacks access to them. These digital wallets are particularly useful for facilitating money transfers, especially international remittances.
Singapore-based cross-border payment company Tranglo announced on Monday, December 16, the addition of 10 new African countries to its payment network. This expansion increases its coverage on the continent to 25 countries, providing an additional option for international remittances to Africa.
The newly covered countries include Benin, Cameroon, the Democratic Republic of Congo (DRC), The Gambia, Guinea, Guinea-Bissau, Ivory Coast, Malawi, Rwanda, and Tanzania. At launch, all new markets will support peer-to-peer electronic wallet transactions, enabling near-instant transfers in local currencies.
This move comes amid a surge in mobile money adoption across Africa. According to the GSMA’s State of the Industry Report on Mobile Money 2024, mobile money subscriptions grew by 19% between 2022 and 2023, reaching 856 million. Total transactions increased by 28% to 62 billion, while the value of these transactions rose by 12% to $919 billion.
The growth of mobile money has made international remittances more accessible, which are "essential for many African families, helping them address urgent challenges such as food insecurity, drought, supply chain disruptions, flooding, and debt servicing," the GSMA notes. In 2023, international remittances and merchant payments saw the highest growth in usage, with mobile money remittances reaching $29 billion—a 23% year-on-year increase. According to the World Bank, total international transfers to Africa amounted to $90.2 billion.
However, Tranglo's solution will face increasing competition, particularly from telecom operators. For instance, Safaricom’s M-Pesa platform is ramping up efforts to expand its acceptance of international transfers from an ever-growing number of countries.
By Isaac K. Kassouwi,
Editing by Sèna D. B. de Sodji
Since 2019, the startup has undertaken numerous financial operations to enhance its technology and accelerate growth. The company has announced the successful completion of a new funding round, elevating its status to that of a unicorn.
South African fintech startup Tyme has achieved unicorn status a designation for startups valued at over $1 billion following a valuation of $1.5 billion after successfully completing a $250 million funding round led by Brazilian neobank Nubank, it announced on Tuesday, December 17.
“Nubank transformed financial services in Brazil. We are excited by the value that Nubank's thought partnership and advice can bring to Tyme, particularly in areas such as data analytics, credit risk management, product development and marketing - levers we believe are key to achieving leadership in our markets,” said Coen Jonker, CEO and co-founder of Tyme Group.
Despite a slowdown in investments in African startups, Tyme has become the second startup to reach unicorn status this year, following Nigerian fintech Moniepoint. The company’s rise to unicorn status was driven by successive funding rounds since 2019, including $79 million in June 2019, $110 million in February 2021, $70 million in December 2021, and $78 million in May 2023.
Tyme is now the ninth African unicorn, joining fintech peers Interswitch, Flutterwave, Opay, Chipper Cash, Wave, MNT-Halan, Moniepoint, and edtech startup Andela. Notably, e-commerce platform Jumia, the continent’s first unicorn in 2016, and fintech Fawry lost their unicorn status after going public in 2019.
By Adoni Conrad Quenum,
Editing by Feriol Bewa
The initiative is part of NamPost’s digital transformation program. Called “Project Sky,” it aims to enhance the organization's operational efficiency, optimize the customer experience, and promote financial inclusion.
NamPost, Namibia's national postal operator, launched a mobile app and online banking services last week to expand access to its financial services. Customers of the state-owned enterprise can now check balances, make payments, and transfer funds electronically from their smartphones or any internet-enabled device without visiting a post office.
“The MyNamPost Banking App and Internet Banking are not just technological upgrades—they represent a commitment to bringing modern financial services to the people of Namibia, wherever they are. Our customers now have more control over their finances with digital tools that are simple, affordable, and convenient,” said Festus Hangula, NamPost’s Managing Director.
Emma Theofelus, Namibia’s Minister of Information and Communication Technology, acknowledged that innovative platforms like NamPost’s are crucial for financial inclusion. According to the World Bank, 71.35% of Namibians over the age of 15 had an account with a financial institution or mobile money provider in 2021, out of an estimated population of 2.5 million. However, she emphasized the need to equip all citizens “with the necessary skills to take advantage” of these services, noting the limited access to smartphones and the internet.
The International Telecommunication Union (ITU) reports that 79.6% of the Namibian population owns a mobile phone. Although the proportion of smartphone users is not specified, the ITU indicates that internet penetration in Namibia stands at 62.2%, with 63.2% of households having internet access at home.
However, the cost of internet access in Namibia remains relatively high compared to ITU standards, which recommend costs below or equal to 2% of gross national income (GNI) per capita. Namibians currently spend 2.6% of their GNI on mobile internet and 8.7% for fixed internet. According to the World Bank, Namibia’s GNI per capita was $12,170 in 2023.
Isaac K. Kassouwi
Last July, TerraPay raised $95 million to expand digital payments across the continent. The company continues its efforts by involving African stakeholders in its initiatives.
British payment solutions provider TerraPay has partnered with several mobile money operators, including Africa's Mpesa and Sama Money, to create the Wallet Interoperability Council, announces a press release dated August 20.
With that council, the British firm aims to interconnect mobile money operators to facilitate cross-border payments and fund transfers.
“This initiative addresses real market challenges and has the potential to reshape perceptions around wallet usage for cross border commerce; thus, enabling easy access for interoperability within the council's wallet participants globally,” said Sekou Kane Diallo, Deputy CEO and CIO of Sama Money.
The launch of this association comes at a time when mobile money solutions are rapidly expanding across the continent. According to the "State of the Industry Report on Mobile Money 2024" by the GSM Association (GSMA), the value of mobile money transactions in Sub-Saharan Africa reached a staggering $912 billion in 2023, a 22% increase from the previous year. The same report shows that Africa accounts for 835 million of the 1.75 billion registered mobile money accounts worldwide, representing 47.7% of the accounts.
Adoni Conrad Quenum
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In Africa, the fintech sector stands out as the most attractive. In 2022, Norfund decided to also position itself in this segment alongside strategic partners.
Norfund, a Norwegian state-owned investment fund, announced on Wednesday, July 3, a $20 million investment in a new fund by the British private equity firm Apis. Named Apis Growth Markets III, the fund will invest in high-growth, technology-focused financial services companies worldwide, with a particular emphasis on Africa and Asia.
"Apis’ expertise in payment solutions and embedded finance is profound. Seamless and cashless digital payments can significantly boost productivity and enhance digital inclusion, an area where Apis truly excels. In addition, we recognize the vital role of embedded finance in helping entrepreneurs and small businesses access the productive assets they need to thrive," said Kathy Chang, Investment Director at Norfund.
This investment comes at a time when funding for start-ups is declining globally. In Africa, funds raised by the continent's start-ups in the first half of this year fell by 56% compared to 2023, amounting to $530 million, according to data from Disrupt Africa. The scarcity of large deals over $100 million (funding winter) and the refocusing of investments by major global funds not primarily focused on Africa may explain this drop in funding.
Apis Growth Markets III plans to finance between 10 and 15 fintech start-ups. Amounts between $60 million and $70 million will be injected into various young companies for upcoming equity stakes.
Adoni Conrad Quenum
At the forefront of the financial sector's digital transformation, the Bank of Mauritius has launched initiatives for years to make financial services more accessible and improve citizens' everyday lives.
The Bank of Mauritius, the central bank of the Republic of Mauritius, plans to open a fintech innovation center on September 4. The plan was unveiled by Harvesh Seegolam, Governor of the Bank of Mauritius, during the "Digital Finance in Africa" workshop organized on Thursday, June 20 by the Regional Centre of Excellence and the Organization for Economic Cooperation and Development (OECD). The goal is to facilitate brainstorming sessions, hackathons, and regional collaborations to address digital issues in Mauritius.
This decision comes at a time when fintech is increasingly dominating the financial sector in Africa. Traditional financial institutions, led by central banks, want to be included in this technological revolution affecting all sectors on the continent. The establishment of such a center by the Bank of Mauritius will promote innovation and the implementation of cutting-edge technologies in the country's banking sector.
According to the "Africa Tech Venture Capital" report published in January 2024 by Partech Africa, African fintech fundraising dropped by 56% to $852 million in 2023. Despite this significant decline, fintech remains the most capital-attractive segment on the continent due to its appeal. This attractiveness is partly due to the low banking penetration rate and the exclusion of the informal sector, which fosters the development of crypto assets on the continent.
The Bank of Mauritius confirmed through Harvesh Seegolam the commencement of the pilot phase of its digital currency implementation in January, following its launch in December 2023 with a commercial bank.
Adoni Conrad Quenum
Despite their crucial role in the entrepreneurial landscape and their potential to drive economic development, small and medium-sized enterprises (SMEs) in sub-Saharan Africa face limited access to financing.
Singapore-based fintech company Proxtera announced a partnership with Ghana's Development Bank of Ghana (DBG) on Wednesday, May 15, during the 3iAfrica Summit in Accra. The collaboration aims to establish a digital platform offering $100 million in loans to Ghanaian small and medium-sized enterprises (SMEs).
Kwamina Duker, CEO of DBG, highlighted the platform's potential to streamline the loan application process and reduce borrowing costs for SMEs over time. “If today, it takes about three to six months to get a loan, with a huge amount of documentation, and we can cut that down to turnaround of literally a real time of 24 hours… then we can appreciate the benefits of digitalization,” he stated.
Through the partnership, DBG will leverage Proxtera's digital platform to provide loans for SME growth and expansion. Eligible businesses must be Ghanaian-owned and operating within the country, with a sound financial plan. Priority will be given to SMEs in key sectors like agriculture, manufacturing, information and communication technology (ICT), and other high-value-added industries.
This collaboration marks a significant step towards digital financial inclusion in Ghana. By facilitating access to financing for SMEs, the partnership is expected to stimulate economic growth, create jobs, and strengthen the country's economic fabric. It aligns with Ghana's national financial inclusion and development strategy, developed in collaboration with the World Bank, which aims to increase financial inclusion from 58% in 2020 to 85% by 2023.
Samira Njoya
Digital technologies are significantly revolutionizing agriculture, impacting every stage of the value chain from production to marketing. Therefore, it's crucial to focus on improving funding to facilitate this transformation.
Orange, in partnership with the European Union and the German Cooperation (GIZ), recently announced the launch of "DigiGreen & Agri," an ambitious project aimed at enhancing the use of digital technology in the cocoa sector in Côte d'Ivoire.
This ambitious partnership benefits from joint funding of 7.6 million euros and will be implemented over three years, with the main objective of creating jobs for youth in digital agriculture or e-agriculture. The focus is particularly on young people from rural areas, women, girls, and individuals with disabilities, through the Orange Digital Center in Côte d'Ivoire.
Jérôme Hénique, CEO of Orange Africa and Middle East, explains: “The Orange Digital Centers serve as crucial catalysts for this transformation, providing a free and open innovation ecosystem accessible to all, with a special focus on youth, women, and vulnerable individuals. Collectively, we are rising to the challenge of constructing an inclusive digital future that respects the environment, paving the way for a more sustainable and prosperous economy.”
The DigiGreen & Agri project is part of the efforts and the desire of the European Union to strengthen smart, clean, and secure links in the digital sector, one of the pillars of the Global Gateway Strategy. This strategy aims to mobilize up to 300 billion euros to develop international cooperation in the fields of digital technology, energy, and transportation.
In Côte d'Ivoire, the implementation of the new project should contribute to the improvement of professional skills, the promotion of entrepreneurship, and the modernization and innovation of sustainable agriculture sectors, low-carbon transition, and corporate social responsibility. The project will also contribute to the evolution of the cocoa sector, which accounts for 22% of the GDP and employs 50% of the active workforce, but receives only 5% of bank financing.
Samira Njoya