Flutterwave , Africa's leading payments technology company, has been named as a founding member of the Milken Institute's newly established Africa Leaders Business Council. Launched on July 9, 2024, in Washington DC, the council aims to deepen the Institute's network and engagement across Africa.

As a key member, Flutterwave will contribute its expertise in facilitating seamless market entry for global enterprises into African markets and empowering local businesses. The company's involvement aligns with the Milken Institute's focus on leveraging technology and expertise to drive sustainable economic growth across the continent.

Flutterwave's role in enabling global multinationals like Uber to expand into African markets, as well as facilitating remittances from the African diaspora, positions it as a valuable contributor to the council's objectives.

The Africa Leaders Business Council, comprising 17 inaugural members from various sectors, will provide insights into Africa's dynamic business landscape and support the Milken Institute's stakeholders in expanding their presence and impact in the region. This initiative is part of the Institute's broader strategy to strengthen its commitment to Africa and solidify its presence across multiple continents.

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NALA is a Tanzania-based fintech company specializing in remittances.

They successfully raised $40 million in its Series A funding round. The investment was led by Acrew Capital , with participation from DST Global, Norrsken22 , HOF Capital , and existing investors Amplo and Nyca Partners . Several angel investors, including executives from Chime and Robinhood, also contributed to the round.

As part of its growth strategy, NALA is launching a new B2B product called Rafiki, designed to address challenges in Africa's payment infrastructure. This move represents NALA's evolution from its initial focus on domestic money transfers in Tanzania to becoming a global remittance platform with ambitious expansion plans.

This substantial funding follows NALA's $10 million seed round in 2022, which facilitated the company's expansion into new markets in Asia and South America. NALA's CEO and founder, Benjamin Fernandes, stated that the new capital will be used to enhance the company's infrastructure and extend its reach beyond Africa, with the aim of building a comprehensive payments ecosystem.

NALA has experienced significant growth since its inception in 2017, with Fernandes reporting a 34-fold increase in transaction volume, a tenfold revenue increase, and profitability achieved this year. The company's platform now integrates with 249 banks and 26 mobile money services globally, allowing users to make direct bill payments to local mobile wallets such as M-Pesa.

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Equity Bank Limited and global money transfer platform Zepz renewed their partnership, aiming to achieve one million transactions monthly and over $1 billion in diaspora money transfers within three years. The collaboration will enable Zepz customers to swiftly send money to Equity Bank accounts and wallets across six African countries: Kenya, Tanzania, Uganda, Rwanda, DRC, and South Sudan.

Zepz is the parent company of global remittance brands WorldRemit and Sendwave (International Remittance), which specializes in providing digital money transfer services across international borders. The company announced the renewal of its long-standing partnership with Equity Bank Limited, a prominent financial services provider in East Africa.

This expanded partnership builds on their initial 2018 agreement, now offering improved customer experience with reliable exchange rates, flexibility, and convenience. Equity Group CEO James Mwangi emphasized the strategic vision to innovate payment solutions for Africa, aligning with the Africa Recovery and Resilience Plan.

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Innovate Africa Foundation has launched with an initial $2.5 million to support early-stage founders across Africa. Co-founded by Kristin H. Wilson and Christian Idiodi , the sector-agnostic fund aims to back up to 20 startups in its first year, focusing on innovative ventures that address complex problems such as insecurity, unemployment, and poverty through purpose-driven technology.

fund will provide an average investment of $50,000 per startup, along with comprehensive support including expert guidance in finance, governance, public relations, and strategy. Innovate Africa's mission is to empower startups to thrive in Africa's evolving tech landscape by providing insight-driven capital and facilitating access to a robust ecosystem of resources.

With a focus on helping founders accelerate their journey from Minimum Viable Product to Product-Market Fit, Innovate Africa aims to bridge the gap in early-stage funding that has hindered many African startups from reaching their full potential. The fund is now accepting applications from founders across Africa who meet their six screening criteria: Character, Credibility, Capacity, Courage, Competence, and Context.

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Dubai-based ride-hailing app Hala has announced its first international expansion into Egypt, partnering with local smart transport solutions provider MwaslaTech. This strategic move, formalized through a Memorandum of Understanding, marks Hala's entry into the promising Egyptian market, particularly targeting the developing New Administrative Capital (NAC) and other key cities.

Founded in 2019, Hala has established a strong presence in Dubai and Ras Al Khaimah, boasting a 20% year-on-year increase in new user registrations in Q1 2024 and training over 2,577 drivers this year. The expansion into Egypt aligns with Hala's strategic goals to replicate its UAE success and capitalize on Egypt's booming ride-hailing market, projected to reach $527 million by 2029.

Hala's CEO, Khaled Nuseibeh, expressed confidence in the company's ability to deliver exceptional transportation solutions in Egypt, leveraging its technological advancements and experience. MwaslaTech CEO, Yasser Sedky, highlighted their expertise in integrating e-hailing with traditional street-hailing methods, which will be instrumental in delivering tailored smart transport solutions for Egyptian commuters.

Hala's entry into Egypt positions it to compete with established players like Bolt, Uber , and inDrive , aiming to enhance the travel experience for Egyptian customers through innovation and service excellence.

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Africa’s largest bank by assets is focusing on East Africa for its next growth phase, targeting key industries such as energy, agriculture, and infrastructure. The bank is leveraging East Africa's regional integration, which facilitates easier trade, as a major drawcard. According to Tunde Macaulay, head of Africa regions and offshore for business and commercial banking, East Africa's integration fosters trade through the free movement of goods and people, making it an attractive region for expansion.

East Africa's projected economic growth, with GDP expected to rise to 5.1% in 2024 and 5.7% in 2025, further underscores its potential. High government spending and strategic investments in connectivity and trade are driving this growth. Standard Bank aims to increase its market share in East Africa, where it currently holds 4% in Kenya and a small presence in Tanzania. The bank is also eyeing West Africa for expansion, with current market shares of 3% in Nigeria and 6-7% in Ghana.

Despite considering acquisitions, Standard Bank Group immediate focus is on organic growth and forming partnerships for distribution rather than building new branches. The bank's Africa Regions portfolio has become increasingly vital, contributing over 40% to its headline earnings.

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KaiOS Technologies, Inc. , known for its mobile operating system for "smart feature phones," is expanding into the merchant payment market by offering affordable payment terminals that resemble feature phones. This move aims to help underserved merchants and transport providers accept digital payments, transitioning from cash-based transactions.

The shift to merchant payments was driven by user behavior during the COVID-19 pandemic, where many searched for business-related apps. Recognizing the significant opportunity in the informal merchant sector, KaiOS identified that there are approximately 100 million informal micro-merchants in Africa, with 40 million in Nigeria alone.

KaiOS is running pilot programs in Nigeria and Côte d'Ivoire to test different digital payment solutions. In Nigeria, the focus is on using Near Field Communication technology for seamless tap-and-go payments in the informal transport sector. In Côte d'Ivoire, the pilot targets mobile money and card acceptance through payment links.

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Africhange, a global remittance services provider, has officially launched operations in the United Kingdom, targeting the growing demand for efficient money transfer services in the UK-Nigeria corridor. This expansion marks a significant milestone for the company, which has been operational since 2020 and currently serves markets in Nigeria, Kenya, Canada, Ghana, and Australia.The platform offers users the ability to send money across more than 100 corridors in Europe, Asia, the Americas, and Africa, supporting various major currencies. In addition to its core services, Africhange plans to introduce 'Afripoints', a rewards program offering transaction discounts to users who send or receive money through the platform.

David Ajala, founder and CEO of Africhange, emphasized the company's mission to enhance the global payment experience for the African diaspora. He highlighted the platform's focus on reducing remittance costs, noting that a significant percentage of funds are often lost in transit due to high transaction fees.Africhange has gained particular traction among international students, offering them discounted rates for global payments. This strategy has positioned the company as a reliable and cost-effective option for cross-border transactions.

Looking ahead, Africhange's UK launch is part of a broader expansion strategy. The company plans to enter new African markets later this year, with Kenya and Ghana as primary targets. This growth trajectory underscores Africhange's commitment to identifying and addressing gaps in the global transaction system while prioritizing seamless operations in its established markets.

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The International Telecommunication Union (ITU) has announced a significant initiative to boost digital infrastructure and connectivity across Africa. A $16.2 million budget has been allocated for Africa's National Broadband Mapping Systems project, set to benefit 11 African countries, including Kenya. This project, supported by the European Commission, aims to establish comprehensive broadband mapping systems to identify internet connectivity gaps in coverage, quality, and affordability.

The project's data-driven approach looks to enable more informed decision-making for investments in digital infrastructure, potentially opening new markets and improving service delivery in underserved areas.

Alongside this initiative, African regulators have endorsed the "GSR-24 Best Practice Guidelines" at the Global Symposium for Regulators in Kampala, Uganda. These guidelines focus on balancing innovation with regulation, particularly for emerging technologies like artificial intelligence. This regulatory framework could provide a more stable and predictable environment for tech companies operating in Africa.

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Six African tech startups have been named finalists for the "Meet the Tôshikas" programme, which aims to connect Japanese investors with promising African startups and provide them with an investment readiness journey. The programme is run by the United Nations Development Programme (UNDP) through its Africa Sustainable Finance Hub and supported by Japan's Ministry of Economy, Trade and Industry.

The first edition of the programme will take place in Zambia, Angola, and South Africa. After selecting 30 startups for bootcamps, six—two from each country—have been chosen for a three-month investment readiness support programme. These startups will also receive a $20,000 catalytic grant and participate in a one-week investors roadshow in Tokyo.

The selected startups are Anda and Mamboo from Angola, Zoie Health and Jobox from South Africa, and Bosso and AfriOnline Group from Zambia. The programme, designed with the support of Double Feather Partners, aims to drive Japanese venture capital towards Africa by showcasing the potential growth and opportunities within the continent's startup ecosystems.

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Telecom Egypt and Nokia have announced a strategic partnership to introduce 5G technology in Egypt, marking a significant milestone in the country's telecommunications landscape. This collaboration will see the deployment of Nokia's AirScale portfolio, including baseband units and Massive MIMO radios, to upgrade Telecom Egypt's radio access network in major cities such as Alexandria, Cairo, and Luxor.

Telecom Egypt, which secured the country's first 5G license for $150 million in January, is positioning itself at the forefront of this technological revolution. This move could potentially reshape the competitive landscape in Egypt's mobile market, where Telecom Egypt currently holds the smallest market share with approximately 13 million subscribers.

The Egyptian government's recent privatization efforts, including the sale of a 9.5% stake in Telecom Egypt, suggest a shifting regulatory environment that may present new opportunities for private investment in the sector. Investors should closely monitor how other major players like Vodafone Egypt, Orange Egypt, and Etisalat respond to this development.

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The United Nations Development Programme (UNDP), in collaboration with several African governments and private sector stakeholders, has announced plans to raise $1 billion to establish a series of technology hubs across Africa. This initiative aims to enhance startup innovation and support youth-led enterprises throughout the continent.

The first of these ten tech hubs will launch at UNDP’s innovation center in Lagos, Nigeria, in the coming days. Additional hubs are set to open later in 2024, including an agritech hub in Accra, Ghana; a healthtech hub in Kigali, Rwanda; and a minetech hub in Lusaka, Zambia. These hubs will form part of the world's largest initiative supporting African tech startups.

In addition to the tech hubs, the initiative has commenced University Innovation Pods in 13 African cities, providing research and development centers for young innovators to transform their ideas into viable products and profitable ventures.

Ahunna Eziakonwa , Assistant Secretary-General and Director of the UNDP Africa Bureau, highlighted the significance of this initiative in igniting a startup revolution in Africa. The $1 billion fund, sourced from both private and public institutions, aims to support over 10,000 youth-led startups across various economic sectors in Africa.

This $1 billion fund is expected to provide a significant boost to African tech startups, especially in light of the decline in venture capital inflows in 2023. Currently, about 83% of venture capital in Africa comes from outside the continent, with the majority directed towards countries like Nigeria, Kenya, South Africa, and Egypt, where the fintech industry accounts for about 60% of the total.

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Zone, Africa's fastest-growing payment infrastructure company, has announced that three of the continent's largest financial institutions— First Bank of Nigeria Ltd. , UBA Group , and Zenith Bank Plc —have joined its decentralized payment network. This announcement follows Zone's recent $8.5 million seed funding round led by Flourish Ventures and TLcom Capital, as well as the launch of its decentralized PoS Payment Gateway, ZonePOS.

Zone, which secured a switching and processing license from the Central Bank of Nigeria in 2022, operates Africa's first regulated blockchain network for payments. The integration of UBA, Zenith Bank, and First Bank into this network is expected to significantly enhance their payment processing capabilities. By leveraging Zone's blockchain technology, these banks can route transactions directly between participants, eliminating intermediaries and reducing failure points. This results in faster, more reliable, and scalable transaction processing at lower costs.

The unique architecture of Zone's blockchain-powered payment infrastructure provides end-to-end transparency and automatic reconciliation, effectively eliminating chargebacks, preventing fraud, and facilitating same-day settlement for financial institutions and their customers. This innovation is poised to be a major catalyst in transforming Nigeria's payment industry and advancing the realization of a cashless society.

Obi Emetarom, CEO and co-founder of Zone, expressed his excitement about the integration of these major banks, highlighting that it underscores the growing trust in Zone's technology and its ability to deliver reliable, frictionless, and universally interoperable payment experiences. He emphasized Zone's commitment to connecting every monetary store of value and enabling a truly inclusive financial ecosystem operating without cash.

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PalmPay has recently introduced several new features aimed at enhancing financial inclusion and user convenience. One of the most notable updates is the launch of unlimited free transfers to all banks within Nigeria. This initiative allows users to perform transactions without incurring any bank charges, initially for three months. The company's Managing Director, Chika Nwosu, emphasized that this move aligns with PalmPay's mission to provide accessible and affordable financial services to its diverse user base, which has grown to over 30 million app users since its launch in 2019.

In addition to free transfers, PalmPay has also introduced a Target Savings feature. This allows users to customize their savings plans by setting their preferred savings amounts, durations, and frequencies. Users can earn an attractive interest rate of 12% per annum on their savings, encouraging disciplined financial habits.

These new features are part of PalmPay's broader strategy to drive financial inclusion across Nigerian communities. By eliminating transfer fees and offering customizable savings options, PalmPay aims to empower its customers to manage their finances more effectively, perform seamless transactions, and pay bills effortlessly.

Furthermore, PalmPay has implemented enhanced security measures in response to directives from the Central Bank of Ni

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OpenAI appoints Tadao Nagasaki, a former president of Amazon Web Services (AWS) Japan arm to lead its efforts in attracting enterprise clients in Japan. With the opening of a new office in Tokyo, OpenAI aims to capitalize on the market potential in the fourth-largest economy by releasing a customized GPT-4 model tailored for Japanese language users. The company boasts 2 million weekly active users in Japan, with notable enterprise clients such as Daikin Industries Ltd., Rakuten Group Inc., and a Toyota Motor Corp. affiliate.

OpenAI is strategically positioning itself in Japan's market with the appointment of a former Amazon Web Services executive to drive its enterprise expansion efforts. The move underscores OpenAI's commitment to tapping into the burgeoning demand for AI solutions in one of the world's largest economies.

With a significant user base of 2 million weekly active users in Japan and a roster of prominent enterprise clients including Daikin Industries Ltd., Rakuten Group Inc., and a Toyota Motor Corp. affiliate, OpenAI is well-positioned to capitalize on the growing adoption of AI technologies in the country.

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Kenyan firms are facing challenges in retaining tech talent as big tech companies like Microsoft, Google, and Amazon expand their presence in the country. To compete, local companies are adopting new strategies to attract and retain skilled workers. These include offering job security, equity and ownership opportunities, fostering a visionary culture, creating a healthy working environment, and setting clear goals for employees.

While big tech companies can offer higher salaries, Kenyan firms are leveraging their unique advantages, such as the ability to provide more meaningful work and faster career progression. Companies are also investing in talent development and partnering with educational institutions to build a stronger local talent pipeline. By focusing on these areas, Kenyan firms aim to differentiate themselves and remain competitive in the increasingly fierce battle for tech talent.

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CNBC and Statista unveiled their 2024 list of the World's Top 250 Fintech Companies. This yearly ranking showcases the most innovative and influential players in the financial technology industry.

Several African fintech companies have been recognized in the list of the world's top 250 fintechs for 2024:(In no particular order)

🔹Kuda (Nigeria/UK): Kuda is a digital microfinance bank that offers tools for tracking spending, saving, and making smart financial decisions, aiming to provide a better banking experience without excessive charges.

🔹MTN South Africa (South Africa): MTN's MoMo platform delivers a range of digital financial services, including payments, e-commerce, insurance, lending, and remittances, promoting cashless economies.

🔹 Flutterwave (Nigeria): Flutterwave provides a robust payment infrastructure for global merchants and payment service providers, facilitating seamless transactions across Africa.

🔹PalmPay (Nigeria): PalmPay is a fintech innovator focused on making digital payments more accessible and flexible, serving millions of users and merchants.

🔹Tala (Kenya/US): Tala offers a mobile-first financial platform that provides instant access to credit and financial tools, empowering millions globally to build wealth.

🔹Piggyvest (Nigeria): Piggyvest is an online savings platform that helps users save money by restricting withdrawals until a set date, encouraging a disciplined savings culture.

🔹Yoco (South Africa): Yoco provides payment solutions for small businesses, enabling them to accept card payments and manage their finances more effectively.

Get the Full list Here

Moody's has downgraded Kenya's credit rating from "B3" to "Caa1" following the rejection of President William Ruto's Finance Bill 2024. The bill, which aimed to introduce new taxes on cars, money transfers, and bread, was withdrawn after violent protests. This downgrade places Kenya's debt further into junk territory, indicating a high risk of default.The downgrade reflects Kenya's diminished capacity to implement revenue-based fiscal consolidation and austerity measures. Moody's highlighted that most of Kenya's spending is non-discretionary, primarily due to debt payments, leaving limited room for further budget cuts without affecting growth.

The government has reduced its tax collection target by Ksh 177 billion for the fiscal year ending June 2025 and announced several budget cuts. Despite these measures, Moody's maintains a negative outlook on Kenya's credit rating, suggesting further downgrades are possible if the country struggles to meet its funding needs or faces increased borrowing costs.

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The African Development Bank Group's "African Economic Outlook 2024: Driving Africa’s Transformation - The Reform of the Global Financial Architecture" provides a comprehensive analysis of the economic performance of 54 African economies. The report highlights East Africa as the continent's fastest-growing region, with real GDP growth projected to rise from 1.5% in 2023 to 4.9% in 2024 and 5.7% in 2025. Tanzania is noted as a strong performer in maintaining low inflation and fiscal balance, with real GDP growth projected at 5.7% in 2024 and 6.0% in 2025. The inflation rate is expected to remain stable at 3.3% in 2024 and 3.4% in 2025, while the fiscal balance is projected to stay at -2.5% for both years. However, Tanzania is ranked as a fair performer in real GDP growth and current account balance.

The report indicates that 26 out of 54 surveyed economies are expected to keep inflation rates below 5% in 2024, with this number rising to 28 in 2025. In terms of fiscal balance, 24 countries are projected to be good performers in 2024, increasing to 27 in 2025. For real GDP growth, 11 countries are ranked as good performers in 2024, with 10 maintaining this status in 2025. In current account balance, 12 countries are ranked as good performers for both 2024 and 2025.The AfDB emphasizes that high inflation across Africa is largely structural, driven by external factors and domestic food supply shocks. It recommends prioritizing monetary and fiscal policy coordination to manage inflation without stifling private sector growth, particularly for SMEs.

The report also highlights the economic benefits of increased public investments in major growth sectors and critical infrastructure in countries like Rwanda, Burundi, Tanzania, Ethiopia, Uganda, Kenya, Djibouti, and Côte d’Ivoire.

Since January 2024, 20 African central banks have raised their policy rates, while five have lowered them. Notably, Egypt, Nigeria, Kenya, Angola, Tanzania, and Côte d’Ivoire, which together account for 40% of Africa's GDP, have all increased their rates.

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Africa continues to attract significant foreign direct investment (FDI) despite global economic challenges, with several countries emerging as key destinations for international capital in 2023. According to the World Investment Report 2024, while overall FDI inflows to Africa declined slightly by 3% to $53 billion, the continent witnessed substantial growth in greenfield investments, particularly in the clean energy sector.

1. Egypt: $9.841 billion, driven by green hydrogen investments

2. South Africa: $5.233 billion, despite economic challenges

3. Ethiopia: $3.263 billion, benefiting from policy shifts opening restricted sectors

4. Uganda: $2.886 billion, leveraging stable policies and strategic location

5. Senegal: $2.641 billion, emerging as a West African leader with nascent oil industry

6. Mozambique: $2.509 billion, capitalizing on natural resources

7. Namibia: $2.345 billion, focusing on oil, gas, and clean energy projects

8. Nigeria: $1.873 billion, showing significant rebound and renewed investor confidence

9. Côte d'Ivoire: $1.753 billion, projected as Africa's fastest-growing economy

10. Democratic Republic of Congo: $1.635 billion, primarily in the mining sector

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A recent nature stress test by McKinsey Sustainability and FSD Africa has highlighted financial risks and opportunities for African banking systems and businesses due to nature loss and biodiversity decline. The study, covering Ghana, Mauritius, Morocco, Rwanda, and Zambia, is crucial for CEOs, entrepreneurs, and investors in Africa.

The stress test evaluated three scenarios: current policies, a disorderly transition aligned with the Global Biodiversity Framework (GBF), and an orderly GBF-aligned transition. Under current policies, businesses face moderate profit losses by 2030, particularly in agriculture, utilities, and manufacturing. In a disorderly transition, profit losses could reach 50% in agriculture, 32% in mining, and 18% in manufacturing by 2050, comparable to climate-related risks

.Conversely, an orderly transition scenario, where businesses proactively reduce their impacts on nature, presents the lowest financial risks. This approach could mitigate up to 4.1 percentage points of exposure-weighted impacts, reducing profit losses by 27% to 78% across the banking systems.

The study also shows the potential credit risks. In a disorderly transition, nature-related risks could increase cumulative expected credit losses by up to 9% by 2030 and 21% by 2050. However, these risks could be significantly reduced in an orderly transition scenario.

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NuRAN Wireless, a provider of mobile and broadband wireless infrastructure solutions, has secured a $5 million loan facility from Cygnum Capital ’s Facility for Energy Inclusion to accelerate its network deployment in Africa. The initial drawdown of $2.5 million will be received within the next week, with $1.07 million allocated to refinance existing renewable energy assets in Cameroon and the remaining funds directed towards further network expansion.

“This financing is a significant step forward for NuRAN,” said Francis Letourneau, President and CEO of NuRAN Wireless. “It allows us to not only fulfill our existing commitments but also expand our reach and connect more people in underserved regions.”

NuRAN intends to use the loan facility to build renewable energy infrastructure for mobile networks in Cameroon and the Democratic Republic of Congo (DRC). The initial funding will enable the completion of an existing contract for 122 sites in Cameroon and the construction of an additional 120 new sites. Following success in Cameroon, NuRAN anticipates further drawdowns for the DRC to build over 100 new sites, subject to meeting specific requirements.

Additionally, NuRAN plans to initiate operations in Ivory Coast and leverage existing inventory to construct sites in South Sudan before the end of 2024, contingent upon securing additional financing.

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APA Insurance Kenya has partnered with South African insurer Hollard Health to launch an international medical cover aimed at individuals, families, SMEs, and corporations. This new plan offers coverage across Africa, India, Europe, and other global jurisdictions through five comprehensive plans.

Ashok Shah , Group CEO of Apollo Investments Limited, stated that the primary goal is to promote healthier living among members, thereby reducing healthcare costs and improving overall health outcomes. The collaboration leverages the combined expertise of APA and Hollard Health to set a new standard for healthcare coverage in the region.

The medical cover will be accessible via the HealthMov app, which provides personalized health monitoring, lifestyle and behavior tracking, educational resources, goal setting, and progress tracking.

Tobé Hope, Chief Executive of Hollard Health, emphasized the app's intuitive features, such as scanning facial features and movement to measure vital health metrics, offering members a virtual doctor, personal trainer, health coach, and mentor.

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Jumia Group has experienced a significant surge in investor confidence, with its share price rising 55% over the past five days. As of Friday's close, Jumia's stock reached $12.08, up from $8.46 on July 8, elevating its market capitalization to $1.32 billion. This remarkable 252.3% increase since the beginning of the year reflects a substantial turnaround for the company, which has faced challenges since its 2019 NYSE listing.

Under the leadership of new CEO Francis Dufay, appointed in late 2022, Jumia has implemented extensive restructuring measures. These include a 43% reduction in workforce, scaling back operations in underperforming markets, and discontinuing its food delivery service. The company has also streamlined its management team and refocused operations on the African continent.

These strategic changes are yielding positive results. In Q1 2024, Jumia reported a 71% reduction in operating losses and an 18.5% revenue growth, despite challenging macroeconomic conditions in key markets like Nigeria. The company has successfully reduced salary and administrative expenses by 37% compared to the same period last year.

Jumia's business model is evolving, with a greater emphasis on third-party sellers, who now account for over 52% of platform sales. This shift has led to a significant increase in commission revenue, which jumped 78% to $17.3 million in Q1 2024.

However, Jumia faces increasing competition from social media platforms expanding into e-commerce, as well as established players like Amazon entering key African markets. The company is focusing on stabilizing its business in core markets before pursuing aggressive expansion.

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BankservAfrica axnd UnionPay International (UPI) announced a collaboration to enhance e-commerce transactions for UPI cardholders across African online merchants. This partnership builds on their existing relationship, with BankservAfrica appointed as UPI's domestic on-soil processor for card payments in South Africa last December.

The initiative aims to introduce UPI e-commerce acceptance in several African countries, leveraging BankservAfrica's position as the largest automated payments clearing house in Africa. UnionPay, which currently operates in 50 African countries, sees this partnership as an opportunity to expand its network and provide African merchants with increased exposure to a global audience.

Stephen Linnell, CEO of BankservAfrica, emphasized the company's commitment to providing sustainable payment services for Africa's digitally transforming future.

Asad Burney, Head of UnionPay International Africa region, highlighted the value of African markets to UnionPay and the opportunities this project presents for existing cardholders.

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Ghana's Cyber Security Authority took a step to strengthen the nation's digital security by issuing licenses and accreditations to 51 cybersecurity entities on July 10, 2024. This decision establishes a regulatory framework for Cybersecurity Service Providers, Establishments, and Professionals operating in the country.

The initiative comes amid a surge in cyberattacks across Africa, as the continent's rapid digital transformation has increased its vulnerability to online threats. Ghana has been proactive in addressing these challenges, implementing a national cybersecurity strategy and establishing a Computer Emergency Response Team (CERT-GH) for real-time threat monitoring and incident response.

Ghana's commitment to cybersecurity is evident in its international engagements, having ratified the African Union Convention on Cyber Security and Personal Data Protection and acceded to the Budapest Convention on Cybercrime. These efforts have contributed to Ghana's strong position in cybersecurity preparedness, ranking third in Africa with a score of 86.69 out of 100, according to the 2021 Global Cybersecurity Index.

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Banking consultant Dr. Richmond Akwasi Atuahene has called for increased scrutiny of fintech companies in Ghana's remittance sector due to discrepancies in reported figures and potential impacts on foreign exchange reserves. He recommended that the Bank of Ghana commission international audit firms to conduct forensic audits on all fintech companies retroactive to 2019. Additionally, he suggested that fintech companies reimburse BoG’s Nostro-Accounts or authorized dealer commercial banks with all foreign exchange components accrued from international remittances.

Dr. Atuahene emphasized the economic benefits of foreign exchange from inward remittances in reducing the current account deficit and stabilizing the local currency. He proposed that BoG enhance its oversight capabilities through technological solutions, including acquiring software to track, trace, and capture all inward remittances via a Middleware platform using APIs and Ethernet-APL technology.

These recommendations come amid concerns about discrepancies between World Bank remittance data and figures provided by authorized dealer banks in Ghana. Dr. Atuahene highlighted that BoG has failed to address the gap between World Bank data on inward remittances and that of the 23 authorized dealer banks from 2019 to 2023. He questioned the handling of significant remittance inflows reported in BoG's 2023 Annual Report, noting that fintech companies received GH¢22 billion (US$3 billion) in 2022 and GH¢57 billion (US$5 billion) in 2023.

While BoG refuted claims of losing US$8 billion through inward remittances, it acknowledged a decline, stating that newly licensed MTOs and fintech companies have withheld approximately US$8 billion over two years. Dr. Atuahene also urged improvements to the international remittance data framework, calling on BoG and the IMF to enhance their BPM6 and RCG remittance data frameworks to better reflect the evolving remittance sector.

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South African travel-focused fintech TurnStay has secured $300,000 in funding from US-based investors DFS Lab and DCG. The company plans to use the investment to expand its operations across Africa and build on its current momentum.

Founded by experienced entrepreneurs Alon Stern and James Hedley, TurnStay aims to significantly reduce payment processing costs for African merchants and platforms in the travel and tourism industry. The company's innovative solution creates a localized payment experience, allowing clients to pay in their home currency using familiar methods when booking accommodation.

TurnStay's technology has already processed over R50 million in transactions and has demonstrated impressive results, reducing costs for some clients by up to 70% and halving unnecessary failed transactions. By leveraging a global network of compliant companies, TurnStay dramatically lowers the cost of international payments for hotels without compromising safety or efficiency.

The funding from Silicon Valley and New York-based investors is seen as a vote of confidence in TurnStay's business model. Stephen Deng, general partner at DFS Lab, praised the company's potential to unlock substantial cost savings for hospitality businesses across the continent.

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Chinese-backed fintech giant OPay received approval from a Federal High Court in Lagos to freeze customer bank accounts in thirty listed banks to recover ₦714 million ($441,051) obtained during a system glitch. The glitch, occurring from December 10, 2023, to March 4, 2024, allowed customers to receive value for unsuccessful transactions.

Upon discovering the issue, OPay contacted customers who received sums above ₦500,000 ($308), asking them to fund their accounts so the retained funds could be debited. The fintech managed to recover 10% of the total amount from cooperative customers. However, many customers did not respond or refused to fund their accounts, prompting OPay to seek legal intervention.

The court granted OPay's request on June 28, 2024, allowing the fintech to ask thirty banks to restrict the affected customer accounts. The glitch involved a misclassification of pending transactions as successful by the Switching Company (Interswitch), leading to the erroneous credits. OPay declined to comment further on the matter.

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At the recent Lagos Startup Week, fintech industry leaders underscored the critical importance of placing customers at the center of financial technology innovation for the sector's growth in Africa. The event, held at the Federal Palace Hotel, featured a panel discussion titled "Digital Disruption: Revolutionising Financial Services," which explored the extensive potential of fintech across various sectors including healthcare, entertainment, blockchain, and mobile payments.

Oluseye Soyede-Johnson, Head of Strategic Partnerships and Innovation at Bvndle, highlighted the "endless opportunities for fintech in Africa," emphasizing that understanding and catering to customer preferences is essential for fintechs to thrive. He stressed that this approach is not merely a competitive advantage but a necessity for driving higher adoption rates and increasing customer retention.

The panel, which included prominent figures such as Segun Adeyemi of Vendorcredit, Dipo Omobomi of Anchor, and Isoken Aigbomian of Paystack, proposed solutions and best practices for fintechs operating in the African tech ecosystem. They emphasized the importance of embracing customer-centric approaches, leveraging innovative technologies, fostering strong regulatory partnerships, and continuously adapting to the dynamic market landscape.

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Karen Nadasen highlights the growing importance of digital payments among African youth, particularly in South Africa. She notes that while young people are increasingly using mobile and digital platforms for transactions, there's a significant gap in their financial literacy. This gap poses risks as youth may not fully understand the implications of their digital spending habits.

Nadasen emphasizes the need for comprehensive financial education that keeps pace with technological advancements. She calls for collaboration between governments, educators, and financial institutions to integrate financial literacy into educational curricula. These programs should teach money management basics alongside practical skills for using digital financial tools.The author points out initiatives like South Africa's Digital Payments Roadmap, which aims to promote digital payment adoption and literacy. However, she also highlights barriers such as limited access to smartphones and internet connectivity.

Nadasen stresses the role of the private sector, particularly fintech companies, in driving change. She cites PayU as an example of a company helping young South Africans integrate into the digital economy through social e-commerce platforms.

Nadasen argues that improving financial literacy is crucial not just for personal financial decisions, but for fostering a generation that can contribute to sustainable economic growth in Africa. She sees this as essential for turning the continent's digital financial revolution into a pathway to prosperity rather than potential debt cycles.

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Opportunities

Antler Nairobi has announced its plan to invest $2 million into early-stage startups over the next six months. The venture capital firm is looking to support 10 ambitious teams or companies, each receiving a $200,000 investment. The focus is on startups addressing significant problems, leveraging technology or tech-enabled solutions, and operating out of East Africa.

Antler Nairobi is inviting startups at the pre-seed or early seed stage to apply by commenting “BUILD” for direct engagement. Individuals at the idea stage can comment “STEALTH” to join their startup residency program, which begins in Nairobi on August 26, 2024, to find co-founders and develop their ideas.

Antler is a global early-stage VC firm, investing in driven founders across 30 cities, including Nairobi. The firm provides initial funding from day zero and offers follow-on funding of up to $10 million for growth-stage startups at Series A and beyond.

Interested parties can apply Here.

The WWBA ASSEMBLY 2024

Women Who Build Africa (WWBA) is a community designed to support women founders, builders, operators, investors, and ecosystem supporters in the tech space across Africa. Founded in May 2022 by Thea Sokolowski and Gwera Kiwana, WWBA aims to create an intentional space for women and non-binary individuals working or interested in technology. The community has grown significantly since its launch and will host its second annual assembly in Nairobi, Kenya, on September 5-6, 2024, alongside the Africa Fintech Summit.

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Join the Conversation

Colombian fintech minka_ is expanding its operations from Latin America into eight African countries in the Eastern and Southern regions, including Kenya, Tanzania, Ethiopia, Malawi, Zambia, Burundi, Uganda, and Mozambique. This move follows similar expansions by Latin American fintechs like dLocal and EBANX, though Minka targets institutions rather than individual consumers, offering a different value proposition.

To delve deeper into Minka's expansion, The Kenyan Wall Street 's Andrew Barden will host a Virtual Office Hours session on Thursday, July 18. Joining the discussion will be Minka's Founder and CEO Domagoj Rozic , Growth Lead for Africa Alexander Perko , and Founding Engineer Jorge Zaccaro. The event will explore the motivations, strategies, and expected impacts of Minka's launch in Africa. The session will be available on LinkedIn, X, and YouTube.

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Global Economic Outlook🌍

Manufacturing Sector Performance

• The global manufacturing PMI remained nearly unchanged at 50.9 in June, indicating modest growth.

• Regional disparities are evident: Asian countries and the United States showed relatively strong growth.Europe (excluding the UK) experienced a significant decline in manufacturing activity.Germany's manufacturing sector PMI fell sharply to 43.5, indicating a rapid decline.

Bright Spots in Asia

• Taiwan's manufacturing PMI rose to 53.2 in June, a two-year high, driven by surging demand for IT products and AI-related investments.

• Vietnam's manufacturing sector saw a sharp acceleration, with its PMI jumping to 54.7 in June from 50.3 in May, reflecting substantial increases in output and new orders.

Inflation and Monetary Policy

• In the Eurozone, consumer prices rose 2.5% year-over-year in June, with core inflation remaining stable at 2.9%.

• The US saw signs of easing inflation, with the PCE deflator up 2.6% year-over-year and core prices at their lowest rate since March 2021.

• Central banks, including the Federal Reserve and ECB, are closely monitoring inflation trends and labor market conditions to determine future monetary policy actions.

Labor Markets and Wages

• The US unemployment rate increased slightly to 4.1% in June, activating the Sahm Rule and potentially signaling recession risks.

• Wage growth in the US slowed to 3.9% year-over-year in June, the smallest increase since June 2021.

• The Eurozone unemployment rate remained at a historically low 6.4% in May.

Global Economic Risks

• The Bank for International Settlements warned of risks to the global financial system from persistent high fiscal deficits and troubles in the commercial property market.

• Concerns persist about the sustainability of fiscal policies in major economies and potential market reactions.

The Greatest Climate-Protecting Technology Ever Devised.

A recent article from Wired, highlights the unparalleled effectiveness of natural ecosystems, particularly old-growth forests, in capturing and storing carbon, making them crucial in the fight against climate change. The Wind River Experimental Forest in Washington state serves as a prime example, where research underscores the significant carbon sequestration capabilities of large, old trees.

TechCrunch reports on the "AI Financial Results Paradox," highlighting the discrepancy between the impressive technological advancements in AI and the underwhelming financial performance of AI-focused companies.

Despite significant investments and breakthroughs in AI, many firms are struggling to translate these innovations into profitable business models. The paradox underscores the challenges in monetizing AI technologies and achieving sustainable growth, raising questions about the long-term viability of current AI business strategies.

Do you have an exciting fintech story, innovation, or insight you'd love to share with our vibrant community? This is a fantastic opportunity to showcase your achievements, share your expertise, or highlight how you're shaping the future of fintech in Kenya.

If you're interested, please don't hesitate to get in touch. Please email us at [email protected] with a brief outline of what you'd like to feature. We can't wait to hear from you and potentially share your story with our community!

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