Finance (93)
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
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
In January 2023, Ghanaian fintech Zeepay raised $10 million, bringing the total funds raised since its launch in 2014 to $24.6 million. The company aims to continue its expansion in its markets and to attract new capital.
Ghana-based fintech firm Zeepay has successfully concluded a funding round, securing an undisclosed amount from pan-African investors including Africa50, Oikocredit, Injaro, Verdant Capital Hybrid Fund, and I&P. The announcement was made in a press release on Thursday, April 4. The funds are set to bolster Zeepay’s operations in cross-border remittances and mobile money in Africa and the Caribbean.
Andrew Takyi-Appiah, the startup’s founder, stated, “The raise will greatly assist us in completing our ongoing expansion drive into the rest of Africa. Our short to medium plan is to expand our mobile money reach into a minimum of 10 countries within the next two years, leveraging remittances in partnership with MoneyGram, and we are delighted to see this vision come through.”
Established in 2014, Zeepay specializes in facilitating instant remittance settlements to mobile money wallets in Africa and the Caribbean on behalf of leading international money transfer organizations (IMTOs). The fintech firm, which operates in around 20 countries globally, has already raised over $24 million to accelerate its growth, particularly in Africa and the Caribbean. Through its technology and various partnerships, Zeepay enables real-time money transfers abroad via a mobile wallet to more than 150 countries.
The fintech sector is the most appealing segment of the African technology industry for investors. In 2023, young entrepreneurs in this segment raised $852 million, and $1.9 billion in 2022, as per data from Partech Africa, a tech investment firm with offices in Dakar (Senegal) and Nairobi (Kenya).
Adoni Conrad Quenum
Mobile financial services are pivotal to fostering digital inclusion in Africa, a region where a substantial segment of the population lacks access to conventional banking services. Digital technology presents considerable transformational prospects in this area.
The Interbank Electronic Banking Group of Central Africa (GIMAC) is set to assist the Republic of Congo in the implementation of the CongoPay digital platform for financial transactions, confirmed Valentin Mbozo’o, Managing Director of Gimac, following a meeting with Léon Juste Ibombo, Minister of Post, Telecommunications and the Digital Economy, on Monday, March 25.
As part of this upcoming collaboration, Gimac commits to making the platform operational and accessible to all segments of the population. “By supporting a project like CongoPay, it will be possible for many people, even the least affluent and most vulnerable, to benefit from these digital payments, regardless of their purchasing power, standard of living, or societal position,” explained Mbozo’o.
This initiative aligns with the fifth pillar of the National Development Plan (NDP) 2020-2026, which aims to align Congo with the development of the digital economy, enabling everyday simple money transfers using electronic transaction technologies.
The CongoPay platform, set to be implemented by the Digital Development Agency (ADN), also partners with Mediasoft Lafayette, an IT engineering services company based in Côte d’Ivoire. This national platform will augment existing electronic money transfer services in Congo.
Once implemented, CongoPay is expected to facilitate trade and financial transactions in the country. It will also aid in improving the efficiency of public administration, facilitate financial inclusion by providing access to basic financial services, and promote the dematerialization of money in the country.
Samira Njoya
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Africa's tech sector has seen rapid growth in the past decade. This led to a surge in the number of investment vehicles to support its expansion.
Anava, a Tunisian fund of funds, announced on Monday its €4 million ($4.4 million) investment in Janngo Capital Startup Fund (JCSF), a fund focusing on African technology. Anava, a €60 million ($66 million) fund, is financed by the World Bank, Caisse des Dépôts et Consignations, and KFW.
The investment aims to support approximately 25 seed-stage startups in healthtech, fintech, and edtech sectors across French-speaking Africa. The goal is to enhance market and capital access for African businesses, create sustainable jobs at scale, and prioritize women and youth.
Fatoumata Bâ, founder and executive chairman of Janngo Capital, said the investment would directly contribute to unlocking massive growth and positive economic, social, and environmental impact in Tunisia and beyond.
The investment comes amid a decline in funding for Africa’s technology sector. In 2023, startups on the continent attracted less capital than in 2022. According to the United Nations Development Programme, 89% of the venture capital in Africa’s tech ecosystem is foreign. Several African funds have been launched this year to improve startups’ access to finance.
In 2023, African startups raised $1.8 billion, a 40% decrease from the $3 billion raised in 2022.
Adoni Conrad Quenum
IFC's equity investment indirectly supports the least financed African startups. This comes amid a 36% plunge in funding raised by African startups in 2023, to $3.2 billion.
International Finance Corporation (IFC) disclosed yesterday, a $10.5 million investment in the 4DX Ventures fund, which supports African tech companies. This investment was facilitated by a new platform launched by the IFC in November 2022, designed to bolster venture capital ecosystems in Africa, the Middle East, Central Asia, and Pakistan.
“By supporting the development of tech ecosystems in emerging markets, IFC's venture capital platform aims to improve access to key services, boost business competitiveness, and promote job creation through digital transformation,” stated Mohamed Gouled, IFC’s Vice President of Industries.
The investment in the 4DX Ventures fund aligns with IFC’s commitment to backing tech entrepreneurs whose innovations are poised to propel Africa forward in key sectors such as climate, healthcare, fintech, e-commerce, and education.
This move comes amid a 36% decrease in fundraising by African startups in 2023, dropping to $3.2 billion, according to research firm TechCabal Insights. IFC data indicates that Africa is among the regions least served by venture capital, receiving a mere 2% of the global venture capital deal volume in the third quarter of 2023.
This investment is expected to provide further support to African startups, aiding promising tech startups in building transformative businesses and making a lasting impact on the continent’s development.
Samira Njoya
African initiatives to support the technology sector are increasing in response to a decline in funding. These initiatives aim to bolster the continent's fast-growing tech industry.
Conducive Capital, a South African venture capital firm, was inaugurated in Johannesburg on Tuesday, March 5. The firm, founded by Clive Butkow (photo, left), former CEO of Kalon Venture Partners, and Mitchan Adams (photo, right), co-founder of Ozow and CEO of Aions Creative Technology, aims to invest in early and growth-stage start-ups across Africa.
The firm plans to raise its first capital of $15 million in July, with a target to close a fund exceeding $50 million within 24 months. "And we go beyond just monetary investments. Alongside funding, Conducive Capital pledges comprehensive support, offering strategic guidance, operational expertise, and mentorship to nurture start-ups, facilitating their growth into industry frontrunners," said Mitchan Adams.
The establishment of Conducive Capital comes amidst a decline in funding for the African technology ecosystem in 2023. However, several initiatives have emerged across the continent, including Sawari Ventures for North African and Middle Eastern start-ups, and Timbuktoo, funded by the United Nations Development Program and African countries. The African Development Bank has also approved a $10.5 million stake in Seedstars Africa Ventures to bolster its investments in sub-Saharan African startups.
Despite a slow start to the new year with $77 million raised by African startups in January 2024, funding nearly tripled to $217 million in February, according to Africa: The Big Deal, a database tracking startup financing in Africa. The influx of new venture capital entities and the closing of Partech’s second African fund at over $300 million signal promising prospects for the African technology ecosystem.
Adoni Conrad Quenum
The digitalization of education in Africa holds significant promise for revolutionizing educational systems and enhancing learning results. Yet, obstacles persist, including inadequate infrastructure and the imperative to equip educators with proficiency in these emerging technologies.
The University of Johannesburg (UJ) has been awarded a grant of approximately 8.1 million rand ($422,000) by the European Union (EU) to implement the Promotion of Technology Enhanced Learning and Digital Education (Pro-TELDE) project in South African Technical and Vocational Education and Training (TVET) colleges. The project, funded by the EU’s Erasmus program, aims to leverage artificial intelligence (AI) to transform education and foster a culture of continuous learning and innovation.
"Project Pro-TELDE reflects UJ’s commitment to advancing digital education and empowering educators for success in the digital era, driving positive societal change through transformative educational initiatives," said Professor Tankiso Moloi, 4IR Research Chair at Johannesburg Business School, UJ.
The EU funding aligns with UJ’s dedication to digital education. The university has recently made significant strides in AI, ranking sixth among African universities for its contributions to AI research.
As part of the project, vocational education will be offered, as well as training of educators, to equip them with the necessary tools to navigate and excel in this new era. An online repository of validated digital educational resources, specifically designed for South African educators, will be established to serve as a hub of knowledge and innovation, providing them with access to a wealth of information and tools to refine their teaching methods.
This initiative, by equipping educators with the tools and knowledge to adapt to digital advancements and incorporate them into their teaching practices, aims to pave the way for a brighter and more technologically advanced future for South Africa’s education sector.
Samira Njoya