EU-Kenya Trade Deal Ushers in New Era of Economic Cooperation
The long-awaited Economic Partnership Agreement (EPA) between the European Union and Kenya has officially come into force on July 1, 2024, marking a momentous development in bilateral relations. This comprehensive trade pact grants Kenyan exports immediate duty-free and quota-free access to the EU market, except arms and armaments. In return, Kenya has committed to gradually opening its market to EU imports over a 25-year transitional period, allowing sensitive sectors time to adapt.
"This deal positions Kenya as a gateway for European investment into East Africa. It's a vote of confidence in our economy and could catalyze much-needed job creation, particularly for our youth."
-John Mutua, an economist at the Institute of Economic Affairs.
The EPA goes beyond traditional trade agreements by incorporating binding provisions on sustainable development, including commitments to labor standards, gender equality, and environmental protection. Trade volumes between Kenya and the EU have been on an upward trajectory, reaching €3 billion ( Ksh 415.5 billion ) in 2023, a 16% increase from 2018.
For Kenyan businesses, the message is clear: the EU market is now more open than ever, but competition will be fierce. Those who can innovate, meet stringent quality standards, and tap into European value chains stand to reap significant rewards in this new era of EU-Kenya economic cooperation.
Before we explore further into what's been shaking and baking on the Fintech Landscape in Africa, let us have a look at Nairobi, where a new revolution is brewing, dubbed 'The Kenyan Gen Z Revolution'
Armed with smartphones and creativity, Kenya's Gen Z is turning to social media to voice their frustrations with the country's economic woes. As unemployment soars and opportunities dwindle, these young adults are leveraging platforms like Twitter and TikTok to organize protests.
In the past, when it was possible for a president to be authoritarian, they would have switched off social media. This approach would be too risky in Kenya, which has enjoyed multiparty politics since 1992, freedom of expression since 2002, and a new constitution that gives people more freedoms than most African countries.
The Kenyan government is now in a dilemma and needs to know its next move.
This Week's Shakers and Bakers in Africa's Fintech Landscape.
Standard Bank and JUMO Partner to Provide Financing Solutions for Ugandan Entrepreneurs
Standard Bank Group and fintech company JUMO have partnered to offer an innovative financing solution for Ugandan entrepreneurs with limited access to funding. This collaboration, formalized through an agreement in Addis Ababa, aims to provide rapid access to cheaper credit rates via mobile phones, using a custom asset-backed securitization (ABS) system. The initiative is expected to positively impact local communities by creating jobs, as 50% of micro-SMEs using JUMO's platform employ at least one additional person.
The ABS structure, powered by JUMO’s AI and machine learning technology, enables Standard Bank, trading as Stanbic Bank in Uganda, to act as the sole arranger and senior lender. This financing tool not only facilitates returns for investors but also promotes financial inclusion and ecosystem growth.
Nicholas Gunning, Executive, Head Securitization at Standard Bank, noted that this solution has unlocked local currency supply for JUMO, allowing the company to expand its lending presence in Uganda sustainably.
JUMO founder and CEO Andrew Watkins-Ball expressed pride in the partnership, highlighting its role in meeting global ESG investment demands and enhancing financial inclusivity in Africa. The collaboration is projected to benefit approximately 500,000 Ugandans, including many first-time borrowers, and aims to replicate this model in other African regions to further develop local financial markets and achieve greater economies of scale.
Kenya's Inflation Drops to 4-Year Low Despite Rising Prices of Transport, Housing, and Utilities
Kenya's annual inflation dropped to a four-year low of 4.6% in June, despite higher prices for transport, housing, and utilities. This unexpected decline provides relief to consumers and policymakers amid ongoing economic pressures.
The government's target inflation range is 2.5% to 7.5%. The report also highlights price movements for various commodities, with some seeing increases while others declined. Overall, this unexpected fall in inflation offers a positive development amid economic challenges.
Chinese EV Maker Neta Enters Kenyan Market, Aims to Disrupt Transportation Landscape
Chinese electric vehicle manufacturer Neta has entered the Kenyan market, introducing its Neta V model in partnership with local distributor Moja EV Kenya. Priced at Ksh 4 million ($31,000 USD), the compact SUV offers a range of 380 kilometers on a full charge, catering to the demand for sustainable and cost-effective transportation in Kenya. With plans for local assembly in the future, Neta aims to establish a strong presence in the African EV market, contributing to the shift towards cleaner transportation solutions in the region.
Kenya's Mobile Money Subscribers Reach 38.7 Million, Driven by Interoperability Improvements
A new report by the Communications Authority of Kenya reveals a significant surge in mobile money subscribers, reaching 38.7 million with a penetration rate of 75%. This growth is largely attributed to the removal of withdrawal codes for Airtel Money transactions, which allowed seamless interoperability between M-Pesa and Airtel Money as part of the Central Bank of Kenya's National Payment Strategy 2022-2025.
The third-quarter sector statistics report for the financial year 2023/2024 highlighted that 700,000 new subscribers were onboarded in the three months leading to March 2024, up from 38 million in December 2023. This increase counters a previous decline in mobile money users, which had dropped to 38 million by June 2023.
Additionally, the number of active mobile (SIM) subscribers rose from 66.7 million in December 2023 to 68 million by March 2024, achieving a penetration rate of 132.1%. This rise was driven by customer win-back campaigns conducted during the period.
Egypt Looks Good: Dahabshiil and M-Pesa Forge Partnership to Enhance Remittance Services for Diaspora
African money transfer company Dahabshiil has entered into a strategic partnership with M-PESA Safaricom-Ethiopia.The partnership will enable members of the Ethiopian diaspora to transfer funds directly to the M-PESA mobile wallets of their family members and friends in Ethiopia. This streamlined process is expected to result in faster, more secure transactions, addressing key concerns in the remittance sector.
Musse Mohamed, Ethiopia's representative for Dahabshiil, emphasized the importance of this alliance, stating, "This partnership allows us to fulfill our mission of delivering accessible and reliable financial services by leveraging M-PESA's growing customer base. Together, we're making it easier and safer for Ethiopians abroad to support their families back home."Dahabshiil is recognized as a leading provider of foreign currency to major banks in Ethiopia, and this new partnership further solidifies its commitment to the Ethiopian market.
On the M-PESA Safaricom side, Anthony Kangethe, Head of M-PESA Commercial Planning & Pricing expressed enthusiasm about the collaboration."We share a vision of promoting financial inclusion and driving economic development. This new service will give Ethiopians a secure and convenient means to send and receive money, empowering individuals and families," Kangethe stated.
Egyptian Fintech Startup Connect Money Secures $8 Million Seed Funding to Expand Banking-as-a-Service Offerings
Egyptian fintech startup Connect Money has successfully closed an $8 million seed funding round, marking a development in the country's fintech landscape. The round was led by Disruptech Ventures and Algebra Ventures, underscoring the confidence investors have in the company's growth potential.
Ayman Essawy , the co-founder and CEO of Connect Money, emphasized the startup's "hyper-growth potential" and its dedication to addressing the challenges businesses face in accessing seamless banking services. The funding will be used to support the launch of five new business verticals in North African markets.
Expressing pride in the successful capital raise, Essawy acknowledged the support and confidence of investors such as DisrupTech Ventures , Algebra Ventures , Lorax Capital Partners , One Stop, and MDP . He highlighted the startup's commitment to assisting non-financial institutions in streamlining operations and driving revenue through banking services.
Mohamed El Sayed Okasha , the managing partner at Disruptech Ventures, commended Connect Money's expertise and market knowledge, stating that the investment will enhance accessibility and efficiency in financial services. This is expected to benefit the fintech ecosystem and revolutionize banking operations, establishing Egypt as a key hub for exporting embedded finance services.
"No. We Did Not Lose $8 Million Due to MTOs and Remittance Fintechs"
The Bank of Ghana (BoG) has dismissed claims that the country lost $8 billion over the past two years due to the activities of Money Transfer Operators (MTOs) and fintech companies involved in facilitating remittances. In a press statement issued on Tuesday, June 25, the Central Bank clarified that the assertion of losing $5 billion in 2022 and $3 billion in 2023 due to MTOs and fintechs withholding remittance funds is "misleading and not grounded in facts.
"The BoG emphasized that no Payment Service Provider (PSP) holds any foreign exchange inflows from inward remittances. Instead, the partner bank credits the local cedi accounts of PSPs for onward transfer to beneficiaries. The statement further noted that all remittance inflows are credited to the nostro account of partner banks of PSPs, ensuring that no PSP holds any forex inflows from inward remittances.
Addressing allegations that Ghana operates two foreign exchange systems, the BoG stated that this is untrue. The Central Bank affirmed that both banks and fintechs engaged in inward remittance services regularly submit prudential returns to the BoG as part of their regulatory obligations. The BoG reiterated that Ghana does not operate two foreign exchange systems and that all entities involved in remittance services comply with the Foreign Exchange Act, 2006 (Act 723) and other legal and regulatory requirements.
Meanwhile:
Ghana Cybersecurity Authority Lists Lending Apps as “Non Compliant” With Bank Of Ghana
The Ghana Cybersecurity Authority (GCA) has issued a press release identifying several lending apps, including Bezo Money, as "predatory" and non-compliant with Bank of Ghana regulations. The GCA highlighted that these apps automatically debit users' wallets without authorization and impose high interest rates on loans. Additionally, the apps have been accused of cyberbullying and using intimidation tactics against users who are late or refuse to repay loans.The press release also noted that these apps are not registered with the Bank of Ghana and fail to comply with the Ghana Data Protection Authority's regulations. The GCA has cautioned the public against using these apps, emphasizing the risks involved and urging individuals to carefully review app permissions before installation.
Bamboo Expands to South Africa Following Launch of Nigerian Stocks on Platform
Bamboo , a Nigerian-based online stock platform, has expanded its operations to South Africa, marking its third African market after Nigeria and Ghana. This expansion follows the company's acquisition of a financial services provider licence from the South African Financial Sector Conduct Authority (FSCA). The platform now enables South African users to invest in US stocks directly through their smartphones.
Richmond Bassey , CEO and Co-Founder of Bamboo, emphasized South Africa's strong investment culture and the consistent performance of the Johannesburg Stock Exchange (JSE) All-Share index compared to other emerging markets. He also noted the country's advanced regulatory frameworks designed to protect investors, which made it an attractive market for Bamboo's expansion.
This move comes after Bamboo's launch in Ghana in September 2022, where it partnered with 10th Capital Investments and received a No Objection Letter from Ghana's Securities and Exchange Commission. More recently, in May 2024, Bamboo introduced Nigerian stocks to its platform, offering shares of blue-chip companies such as Access Holdings, MTN Nigeria Communications, Dangote Cement, and Nestle Nigeria.
Founded in 2019 by Bassey and Yanmo Omoregbe, Bamboo aims to simplify investing in various asset classes. The platform provides resources for stock and ETF selection, along with investment education tools. Despite facing challenges, including a temporary account freeze by the Central Bank of Nigeria in 2021, Bamboo has continued to grow. The company raised $15 million in a Series A funding round in January 2022, led by Greycroft and Tiger Global, to support its expansion and product development efforts. Bamboo now boasts over 500,000 registered users, with a significant portion investing in US stocks.
Mama Knows Best: WhatsApp Banking Tailored for Migrant Communities
South African fintech startup Mama Money has launched a groundbreaking WhatsApp-powered bank card service in collaboration with Access Bank and Paymentology. This innovative offering aims to provide accessible financial services to the company's diverse user base, which primarily consists of migrants from countries such as Zimbabwe, Malawi, Ghana, Nigeria, and India.
The new Mama Money Card allows users to perform a variety of financial transactions directly through WhatsApp, including international money transfers, airtime and electricity purchases, balance checks, and account management. By leveraging the popular messaging platform, Mama Money addresses the data cost concerns that often hinder financial inclusion for many of its 720,000 users.
Security is a key feature of the new service, with Paymentology's advanced technology enabling users to instantly freeze their cards via WhatsApp in case of loss or theft. This feature adds an extra layer of protection for cardholders, enhancing the overall user experience.
Mathieu Coquillon , co-founder of Mama Money, emphasized the significance of this new offering, stating that it represents a major step in empowering communities, particularly migrants. The card provides a secure platform for employer payments, encourages savings, and aims to improve the financial well-being of its users. By addressing the specific needs of its diverse customer base, Mama Money continues to break down financial barriers and promote inclusivity in the rapidly evolving fintech landscape.
But FNB Warns Customers of Sophisticated Phishing Tactics Targeting Digital Wallets in South Africa
First National Bank (FNB) in South Africa is warning customers about sophisticated phishing tactics targeting digital wallets. Cybercriminals are using deceptive methods to trick individuals into divulging sensitive card details, which are then used to add victims' card details to the criminals' digital wallets. FNB emphasizes the importance of stringent security measures for personal information to combat these threats and highlights the security advantages of virtual cards over traditional digital wallets.
US: Bank Stress Tests Pass, But Potential Losses Loom...
Recent economic data offers hope for American consumers and investors. The Federal Reserve's Personal Consumption Expenditure price index fell to 2.6% in May, its lowest since March 2021, sparking expectations of interest rate cuts, with the first likely in September.
While the reduction in inflation pressures is a relief, economists warn that the policies of both presidential candidates could worsen inflation and fail to address fiscal and debt issues. Market performance this week was mixed, with FedEx and Carnival Corp. seeing strong gains, while Walgreens Boots Alliance and Nike experienced significant drops.
Investor Ed Yardeni highlighted concerns over the market's reliance on tech giant Nvidia, posing risks of a downturn. Despite passing Federal Reserve stress tests, American banks could face greater losses than previously projected. The depletion of pandemic savings has led to rising delinquencies and record-high debt, making consumers' financial stability dependent on current income.
...South African Reserve Bank to Follow Suit
South African Reserve Bank is likely to delay interest rate cuts, aligning with the United States Federal Reserve. Bank of America (BofA) economist Tatonga Gardner Rusike, PhD predicts no rate cuts by the US Federal Reserve in 2024, leading BofA to revise its first rate cut call from September 2024 to January 2025. Not all economists share the same view, with some suggesting potential rate cuts as early as September 2024.
BofA also expresses concerns about the short-term outlook for the rand and the political risks associated with the Government of National Unity (GNU) in South Africa. Despite the risks, BofA sees potential positives in the GNU, including better accountability and fiscal consolidation materializing in 2026. The bank maintains its 1.3% growth forecast for 2024, with a potential bounce back this Q2 amid reduced load shedding.
Business-Friendly Cabinet Boosts Investor Confidence in South Africa
South African markets experienced a broad rally following President Cyril Ramaphosa's announcement of a new cabinet, which aims to prioritize economic growth. In a televised address, Ramaphosa allocated key ministerial posts to business-friendly opposition politicians while retaining Enoch Godongwana as finance minister, showing a continued focus on fiscal policy aimed at curbing debt, Bloomberg reported.
The announcement came after the African National Congress lost its parliamentary majority in the May 29 elections, leading to a coalition government with almost a dozen parties, excluding the main left-wing parties. This coalition is expected to help address state ineptitude, power shortages, and logistics issues that have hindered economic growth.
The South African rand advanced 1% to 18.0171 per dollar, and the yield on benchmark 2035 government bonds fell 17 basis points to 11.23%. The FTSE/JSE Africa All Share Index climbed for a second day, nearing a year-to-date high. Additionally, the cost of insuring South Africa’s debt for five years using credit-default swaps fell to the lowest since January 1, and the premium on South Africa’s dollar bonds over US Treasuries narrowed to the lowest since December 14.
Pyypl Partners with Visa to Expand Digital Payment Solutions Across Middle East and Africa
Pyypl - For 800 million Digital Natives has announced a major partnership with Visa. This collaboration allows Pyypl to issue both virtual and physical prepaid Visa cards, enhancing financial inclusion across the Gulf Cooperation Council and Africa. Through a Principal Licence membership and strategic framework agreement with Visa, Pyypl can accelerate its international expansion and provide Visa cards directly to its users via its mobile app, benefiting hundreds of thousands of active users.
The partnership aims to democratize access to financial services, with Pyypl's proprietary technology enabling rapid access to cheaper credit rates and promoting financial inclusion.
Antti Arponen , CEO and co-founder of Pyypl, emphasized the collaboration's potential to advance financial services for underserved digital natives in the region.
Hasan Kazmi, Visa’s VP of strategic partnerships and ventures for CEMEA, highlighted the partnership's role in empowering underbanked consumers with secure payment solutions, integrating them into the digital economy.
Pyypl operates in multiple markets across Africa and the GCC, offering virtual and physical prepaid cards, instant domestic and international transfers, and remittances to 80 countries through a single app.
Flutterwave Refocuses on Core Services, Announces Strategic Restructuring
Flutterwave announced a strategic shift to focus on its core business areas of enterprise payments and remittance services, particularly through its Send App. As part of this realignment, Flutterwave has decided to lay off 24 employees, representing 3% of its workforce, to streamline operations and better allocate resources.
In light of this, Flutterwave announced that it will provide severance packages, including an average of three months' gross salary, monetization of accrued leave days, and three months of free healthcare. Additionally, employees will have access to professional training for 12 months, outplacement services for three months, and continued access to mental health and career coaching. For those with stock options, an additional six-month vesting period will be provided.
Flutterwave's renewed focus aims to enhance its position as the payment gateway of choice for enterprise businesses in Africa and expand its remittance services to more countries. The company is also implementing a new compensation framework for remaining employees, featuring increased base salaries and performance-based bonuses, to ensure competitiveness and motivate its workforce.
The Green White Green Flexes AI Muscles
Nigeria has solidified its position as a formidable leader in artificial intelligence in Africa with the launch of NiGPT, the country's first generative AI chatbot. Developed by GreyDots AI, NiGPT is designed to rival other large language models (LLMs) such as Google’s Gemini and OpenAI’s ChatGPT by providing Nigerian-centric answers.
GreyDots AI, founded by Arnold Agure-Dam and Julius Oyekanmi, aims to deliver solutions that enhance various sectors of Nigeria’s socio-economic landscape. During the event, Agure-Dam highlighted the evolution of search engines and the limitations of traditional horizontal search methods, which led to the development of AI-driven vertical search engines like NiGPT. He emphasized that NiGPT not only competes with global AI models but also addresses the specific information needs of Nigerians, providing accurate and contextually appropriate responses.
The launch was graced by dignitaries including Ayodele Olawande, Minister of State for Youth Development; Tubosun Alake, Lagos State Commissioner for Innovation, Science, and Technology; and Sunday Baba, Director of Public Communication and National Orientation. The event began with a goodwill message from Uche Nnaji, Minister of Innovation, Science, and Technology, represented by Martins Emeje, Director General of the Nigerian Natural Medicine Development Agency. Emeje pledged the ministry’s support for innovative projects like NiGPT, which aim to advance Nigeria through AI and other new technologies. NiGPT demonstrated its capabilities by providing detailed answers to both general knowledge and Nigeria-specific questions, showcasing its superior performance compared to existing models like ChatGPT. The AI chatbot is designed to enhance various sectors, including education, healthcare, agriculture, energy, manufacturing, finance, and entertainment, by offering data-driven insights and improving accessibility to information.
The launch of NiGPT aligns with President Bola Tinubu’s vision of diversifying Nigeria’s economy and enhancing its technological capabilities. The Lagos State government has also shown strong support, with significant investments in data center infrastructure to localize technologies like NiGPT. This initiative is expected to drive competition, innovation, and economic growth, positioning Nigeria as a leading player in the global AI landscape. NiGPT is not yet open to the general public, but interested users can join the waiting list to gain early access. With its potential to revolutionize information access and provide localized solutions, NiGPT represents a significant advancement in Nigeria’s technological evolution.
CBN Prioritizes Cybersecurity and Innovation to Ensure Financial System Stability and Integrity
The Central Bank of Nigeria reaffirmed its commitment to addressing cybersecurity challenges and fostering innovation for the stability and integrity of the financial system. This was emphasized during the Financial Institutions Training Centre Fintech Conference in Lagos. The conference highlighted concerns about cybersecurity threats, data breaches, and digital fraud. The CBN is working on new regulations focusing on corporate governance and licensing requirements to mitigate the risks of the digital era.
Chizor Malize, the Chief Convener of FITC, emphasized the need for strong regulation and compliance to ensure financial system stability. The CBN's commitment underscores its role in maintaining the stability and integrity of Nigeria's financial system, crucial for driving financial inclusion and economic growth.
Balancing Progress and Challenges in the 4IR
The International Monetary Fund 's latest AI Preparedness Index reveals a widening gap between wealthy and developing nations in AI readiness. Kenya ranks second in Africa, behind South Africa, reflecting its efforts to embrace AI and digital technologies. AI-driven startups are emerging across sectors such as agriculture, healthcare, finance, and education. Despite these advancements, Kenya faces challenges related to infrastructure and skills gaps...
Wakanow Launches Enhanced Travel Platform and New Services Across Africa
Wakanow Group , a leading African travel and fintech conglomerate, has launched its new website along with several product subsidiaries aimed at enhancing the travel experience across the continent. The launch event, held on June 20, 2024, marked a significant milestone for the company.
Bayo Adedeji, Group CEO of Wakanow, expressed optimism about the future of travel in Africa, highlighting the numerous untapped markets and opportunities. He emphasized that Wakanow is strategically positioning itself to capitalize on these prospects, stating that the launch of the new products is a crucial step in their mission to revolutionize travel on the continent.The new Wakanow website, unveiled during the event, focuses on providing a seamless user experience for flight bookings, travel visa assistance, and holiday packages. Adenike Macaulay, CEO of Wakanow, detailed the website's upgrades, which include the ability for customers to book and pay for flight tickets in various currencies, thereby facilitating seamless transactions from different locations. Macaulay noted that the optimized booking process allows customers to view and select flight options easily, enhancing the overall user experience.
Additionally, Ludovic Philippo, COO of Wakanow, introduced Amina, the company's new AI chatbot. Amina is designed to assist customers throughout their booking journey, providing real-time support and ensuring a hassle-free experience.
The event also saw the introduction of RoomDe, Wakanow's new accommodation booking platform. Sofie Osei-Bonsu, CEO of Rest of Africa, and Gbolahan Salami, Senior Vice President of Product and Strategy at Wakanow, presented RoomDe as a comprehensive solution for booking various types of accommodations, including hotels, shortlets, guesthouses, beach houses, and villas. Osei-Bonsu emphasized that RoomDe caters to diverse needs, whether for short stays, long vacations, business trips, or leisure.
Founded in 2019, Wakanow continues to expand its offerings and enhance its services, aiming to provide exceptional value to its customers and drive positive change in the travel and fintech industries across Africa.
In Rwanda, Equity Bank and RSwitch Launch eKash Platform
Equity Bank Rwanda and RSwitch have joined forces to introduc e the eKash payments platform, marking a significant step towards transforming Rwanda's financial landscape. Launched on June 26, 2024, eKash enables instant money transfers among local banks, mobile money operators, microfinance institutions, SACCOs, and fintech companies.The platform, originally introduced by RSwitch in 2021 as Rwanda's National Digital Payment System, emphasizes interoperability, allowing seamless fund transfers across different financial services. This initiative supports Rwanda's shift towards a cashless economy and aims to enhance financial inclusion.
Hannington Namara, Managing Director of Equity Bank Rwanda, highlighted the platform's benefits, stating that eKash expands their digital services while promoting a cashless economy and improving financial inclusion. The new system allows users to transfer up to 10 million Rwandan francs from banks to mobile wallets, a substantial increase from the previous limit of two million.
Blaise Pascal GASABIRA , CEO of RSwitch, emphasized eKash's role in facilitating low-value retail transactions and fostering innovation among financial institutions. He also mentioned plans to introduce Person-to-Government (P2G) and Government-to-Person (G2P) transactions in the near future.Equity Bank Rwanda, which has been operating since 2011 and boasts a network of 46 branches serving over 1.3 million customers, will integrate eKash across its platforms, including mobile apps and internet banking. This integration is expected to provide greater convenience, reduce costs, and broaden financial access for all Rwandans, marking a significant step towards a more digital economy in the country
Anticipates $500 Million Boost from Artificial Intelligence Adoption in Next 5 Years
Rwanda anticipates economic gains from adopting artificial intelligence technologies, according to projections shared by the country's Minister of Information and Communications Technology and Innovation, Paula Ingabire, at the World Economic Forum's Annual Meeting of New Champions in Delhi, India. A study conducted in collaboration with McKinsey suggests that implementing AI in key sectors such as agriculture, healthcare, public services, and social security could contribute approximately $589 million to Rwanda's economy over the next five years, potentially boosting GDP growth by 6 percent.
Minister Ingabire highlighted Rwanda's remarkable progress over the past three decades, transitioning from the aftermath of the 1994 genocide to becoming one of Africa's fastest-growing economies. The country has made significant strides in digital infrastructure, with 97 percent of the nation covered by 4G broadband internet connectivity and all government services available online. Rwanda has also achieved notable success in financial inclusion, reaching 96 percent of its population of over 14 million.
As Rwanda commemorates 30 years of recovery and growth, the government is positioning the country to leverage AI and other emerging technologies to further its development goals and transition to a knowledge-based economy.
Blockchain & AI - The New Superheroes Against Africa's Dirty Money
The chairman of Nigeria's Economic and Financial Crimes Commission, Olanipekun Olukoyede, highlighted the potential of blockchain technology and artificial intelligence as key tools to address the challenge of illicit financial flows across Africa. African countries lose an estimated $88.6 billion annually due to IFFs.
Olukoyede advocated for the adoption of advanced technologies, such as data analytics, blockchain, and AI, to enhance asset tracking and recovery efforts. Nigeria has been taking steps to embrace blockchain technology and AI as part of its efforts to combat illicit financial flows and drive broader economic development. The Nigerian anti-corruption chief's call to leverage blockchain and AI represents a crucial step towards empowering the continent to reclaim its resources and invest in sustainable development.
Sanlam Kenya Unveils Business Recovery Plan to Accelerate Growth and Profitability
Sanlam Kenya has unveiled a business recovery plan aimed at accelerating growth and profitability following a challenging financial year. The company reported a loss after tax of Ksh127 million for the year ended December 2023, attributed to high interest rates and increased finance costs.
Despite the group's overall loss, its subsidiaries showed positive results. Sanlam Life Insurance Limited recorded a 15% growth in profit after tax, reaching Ksh534 million, while Sanlam General Insurance Limited returned to profitability with Ksh123 million in after-tax profits.
Key elements of the recovery plan include improving capital efficiency, digitizing business processes, and enhancing customer value proposition. The company received dividends totaling Ksh550 million from its life insurance subsidiary, demonstrating a commitment to financial restructuring. Sanlam Kenya's management expressed dedication to building a resilient business and increasing financial inclusion through improved access to insurance products and services.
CREDICORP and NIMC Partner to Revolutionize Credit Scoring for All Nigerians with National ID Numbers
Credicorp and NIMC are partnering to create credit scores for all Nigerians with National Identification Numbers (NIN). This aims to simplify the credit scoring process, address the challenge of limited credit history, and enable lenders to make more informed decisions. The goal is to enhance financial inclusion, drive economic growth, and empower individuals and businesses.
This aligns with the Nigerian government's efforts to promote financial inclusion and economic growth. The partnership represents a significant step toward universal credit access in Nigeria, with a transformative impact expected on the financial landscape.
Afreximbank and WTO Sign Memorandum of Understanding to Enhance Collaboration and Promote Global Trade in Africa
The African Export-Import Bank (Afreximbank) and the World Trade Organization have signed a Memorandum of Understanding (MoU) in Cairo, Egypt. The MoU aims to facilitate collaborative efforts in promoting global trade and utilizing Africa's rich resources. It will enable the organizations to coordinate their initiatives to deepen key trade development activities in Africa.
Afreximbank and the WTO are already part of an inter-agency partnership focused on driving transformative change in the cotton industry in Africa's Cotton-4 plus (C4+) countries, with the potential to expand this collaboration to support the cotton sector in other regions. The MoU covers various areas, including trade finance, addressing non-tariff barriers to trade, the digital economy, capacity building, and the African Continental Free Trade Agreement (AfCFTA).
Professor Benedict Oramah, the President and Chairman of the Board of Directors of Afreximbank, emphasized the natural partnership between the two organizations. He also highlighted ongoing initiatives such as the partnership with Confédération Africaine de Football and the Rebranding Africa Forum (RAF), which will benefit from collaboration with the WTO.
Number of Fintech Unicorns in Africa?
A. 10
B.7
C.8
D.5
MTN Nigeria Constructs West Africa's Largest Tier 4 Data Center to Bolster Digital Infrastructure
MTN Nigeria has unveiled a new Tier 4 data center in Lagos, marking a significant enhancement to the country's digital infrastructure. The facility, boasting 99.995% uptime and complete fault tolerance, aims to meet the growing data demands of businesses and consumers across Nigeria.
The data center will serve as a vital resource for businesses, particularly MSMEs, enabling them to leverage cloud services and digital solutions without maintaining their own server rooms. It will also improve content delivery from major tech companies like Meta and Google, enhancing user experience and network efficiency.
MTN's Chief Technical Officer, Mohammed Rufai, emphasized the data center's role in driving economic growth and innovation. The facility aligns with MTN's Ambition 2025 strategy and ESG goals, utilizing efficient cooling systems and a mix of energy sources to reduce its carbon footprint.
IFC and Deutsche Bank Establish €215 Million Risk-Sharing Facility to Boost Trade Finance in Africa
The International Finance Corporation partnered with Deutsche Bank to establish a €215 million risk-sharing facility aimed at providing essential financing for importers and exporters in Africa, particularly in smaller, fragile, and conflict-affected states. This initiative addresses the trade finance challenges faced by African banks, enabling Deutsche Bank to continue offering trade finance during a time when many global banks are reducing their involvement.
The facility will support trade activities across the continent, enhancing the supply and affordability of crucial goods, which can aid in climate adaptation and fortify food security. The initial portfolio will mitigate risks for 40 issuing banks in 18 African countries, 14 of which are identified as small, fragile, or conflict-affected.
IFC Vice President Mohamed Gouled emphasized the facility's role in helping African importers and exporters participate in global value chains, creating jobs and driving economic growth. This project is the first under the IFC Africa Trade and Supply Chain Recovery Initiative, supported by the IDA Private Sector Window Blended Finance Facility, and aims to inspire other financial institutions to offer trade finance to African banks.
AFC Partners with UNIDO to Boost Sustainable Industrialization and Support Textile Value Chain in Africa
Africa Finance Corporation has signed two significant agreements at the Aid-for-Trade Global Review in Geneva, Switzerland, reinforcing its commitment to sustainable development in Africa.Firstly, AFC partnered with the United Nations Industrial Development Organization (UNIDO) to advance sustainable industrialization in developing economies. This collaboration aims to catalyze private investment across various sectors, focusing on energy access, industrial decarbonization, and agro-industry development.
Secondly, AFC joined the 'Partenariat pour le coton' initiative alongside UNIDO, WTO, ITC, Afreximbank, and ITFC. This partnership seeks to enhance Africa's role in global textile and apparel value chains, particularly benefiting countries like Benin, Burkina Faso, Chad, Mali, and Côte d'Ivoire. The initiative will focus on building regional hubs for sustainable textiles to boost trade competitiveness and economic development in Africa's cotton sectors.These agreements align with AFC's ongoing efforts to transform Africa's infrastructure and industrial landscape, as highlighted in their recent "State of Africa's Infrastructure Report 2024."
Digital Identity Emerges as a Transformative Force in Finance Across Africa, Japan, and the UK
The integration of digital identity is reshaping the financial sector, driving changes in open finance in Africa, Japan, and the UK. In Africa, digital identity systems are vital for enhancing financial inclusion. Japan's largest banks are collaborating on a digital identity initiative using Distributed Ledger Technology. In the UK, decentralized identity systems are critical for the evolution of open banking.
This global push to integrate digital identity promises to bring millions into the formal financial system in Africa and enhance security and innovation in technologically advanced economies. However, challenges such as ensuring interoperability, maintaining privacy, and achieving regulatory compliance need to be addressed for widespread adoption.
IAB Tech Lab Releases Final Report Assessing Google's Privacy Sandbox Initiative
The IAB Tech Lab, a digital advertising industry group, has released its final Privacy Sandbox Fit Gap Analysis report, a detailed 106-page evaluation of Google's Privacy Sandbox initiative. This initiative, developed for the Chrome web browser, aims to limit third-party cookie tracking while still enabling targeted advertising. The IAB Tech Lab's task force, composed of industry experts, assessed the capabilities of Privacy Sandbox APIs, particularly focusing on a Protected Audience auction.
The task force had three main objectives: to establish a baseline for the current state of digital advertising, to encourage companies to test Privacy Sandbox features, and to provide feedback to Google's development team on challenges with the Protected Audience API (PAAPI). Initial findings from a draft report in February 2024 raised significant concerns about the PAAPI, leading to extensive industry discussions and feedback.
Despite incorporating some revisions based on this feedback, the final report, released on June 27, 2024, maintains that the current form of Privacy Sandbox does not adequately support a healthy digital advertising ecosystem. The IAB Tech Lab expresses concerns that the Privacy Sandbox could restrict effective advertising, particularly affecting smaller publishers and brands.
Moving forward, the task force will collaborate with Google to create a prioritized list of feature requests aimed at enhancing the advertising utility of Privacy Sandbox and supporting publisher monetization.
This list is expected to be published in Q3 2024. The final report is a critical resource for the industry, highlighting the ongoing debate over balancing user privacy with a functional advertising-supported web.
THRIVE Global Impact Challenge Offers $1 Million Prize for Sustainable African Agrifood Startups
The THRIVE Global Impact Challenge is inviting African agrifood startups to apply for a chance to win a $1 million prize. The challenge is part of a global initiative to promote sustainable agriculture and aligns with the United Nations' Sustainable Development Goals. Finalists will have the opportunity to present their innovative solutions at the THRIVE Global Impact Summit in Silicon Valley.
The deadline for applications is July 12, and the winner will be announced at the summit. This is a significant opportunity for African agrifood startups to showcase their innovative solutions and secure support to drive the transformation towards a more sustainable agricultural future.
Africa's Climate Tech Startups Outpace Fintech in Funding, Signaling Shift in Investment Priorities
African climate tech startups have emerged as the leading sector for investment in 2024, surpassing fintech for the first time. According to a report by Africa: The Big Deal, climate tech companies have attracted 45% of total tech startup funding in Africa this year, amounting to US$325 million. This marks a significant shift from previous years when fintech dominated the funding landscape.
Despite the overall downturn in African startup funding, climate tech has shown resilience and growth. The sector has seen consistent increases in absolute funding over the past five years, rising from US$340 million in 2019 to US$1.1 billion in 2023. However, analysts caution that reaching last year's total seems unlikely in the current investment climate.
The rise of climate tech comes as fintech experiences a notable decline, with the sector raising only US$158 million (22% of total funding) in 2024 so far, compared to US$852 million (over 50% of total funding) at the same point last year. Within climate tech, the sub-sectors attracting the most funding are Logistics & Transport (29%, US$215 million) and Energy & Water (18%, US$132 million).
Global Tech Executives Bullish on AI Despite Privacy and Security Concerns
A new survey conducted on behalf of identity and access management provider Okta reveals that technology-focused executives are highly optimistic about the role of artificial intelligence (AI) in their organizations. The survey, which included 125 CISOs, CTOs, CIOs, and CSOs, found that almost all respondents are already using AI to automate processes, analyze data, process natural language, write code, and generate content. Executives anticipate that AI will further enhance security, efficiency, and innovation in the near future.
Despite their optimism, executives expressed concerns about AI's impact on data privacy, security, and compliance, as well as ethical and bias considerations. The survey highlighted that 46% of executives feel equal parts concern and excitement about AI, while 44% are more excited than concerned.
The survey also revealed that 89% of executives view AI as a positive force, with the highest approval ratings coming from respondents in Europe, the Middle East, and Africa. Additionally, 92% of respondents feel confident in making AI-related decisions, with over half describing their AI knowledge as "expert" or "advanced."Executives plan to prioritize AI for improving security and threat detection, optimizing organizational efficiencies, enhancing innovation, and automating tasks over the next 12 months. However, they remain vigilant about the potential risks and emphasize the need for careful implementation and risk management.
Paycorp Expands Embedded Funding Services in South Africa and the UK
Paycorp Group , an international payments company with over 20 years of experience, has announced its expansion into embedded business funding in South Africa and the United Kingdom. The company's Capital Express brand is now offering business funding to ATM clients across South Africa, providing instant working capital of up to R1 million based on historical ATM transaction data. This initiative is in cooperation with Retail Capital, a TymeBank division.
In the UK, Paycorp has launched Recap Global, a joint venture with Retail Capital, to offer pre-approved, real-time funding using transaction data from various payment partners' ATMs, point-of-sale, and e-commerce platforms. Recap's advanced credit risk engine is integrated into payment partners' processes, ensuring a seamless user experience for businesses seeking short-term working capital.
Paycorp's expansion reflects its evolution from a South African ATM business to an international payments provider, now operating across multiple payment verticals and geographies.
The company continues to provide a wide range of payment services, including transaction processing for ATM and POS terminals, and ATM network management in several countries across Southern Africa, Central and Eastern Europe, and the United Kingdom.
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