Foreign investors stage comeback to Nigeria, seeking high yields over interest rates
Foreign investors are staging a comeback for more demand for government securities, following a hike in benchmark interest rates and reforms led by Nigeria’s Central Bank. Many of these investors have picked interest in Open Market Operations (OMO) and treasury bills auctions. Sources said there was an uptick of foreign portfolio investors in the market which was dominated by domestic investors for the past seven years. Foreign Portfolio Investments on the Nigerian Exchange Limited (NGX) in February 2024 rose by 23% from ₦53.11billion ($39.13million) to ₦65.81billion ($42.61 million) compared to January 2024. This uptick reflects investor confidence in the market, according to analysts. “High-interest rates attract foreign investor participation, which could stabilise the currency woes,” Ayodeji Ebo, Chief Business Officer, Optimus by Afrinvest told TechCabal over the telephone. The Central Bank has consecutively raised interest rates sharply to a 10-year high of 24.75%, in an aggressive move to contain stubborn inflation. At the last rate hike meeting, Cardoso hinted that the MPC would keep raising the rates in hopes that inflation moderates below 30%. The continuous rate hike has attracted more investors while hurting lending to smaller businesses. Analysts told TechCabal that they want the trend to continue. Last week, the CBN directed all banks on a recapitalisation drive, to increase their minimum capital requirements within 24 months, to ensure stability of the financial system. Ebo believes that the entrant of foreign investors will provide the needed capital for the banks’ recapitalisation. He explained that even if the entry of foreign investors is for a short while, their inflow is important for stabilising the economy. Foreign investors provide the liquidity needed in the market, said Ayooluwade Ogunwale, a portfolio manager. “As such, carry trade opportunities in Nigeria have become attractive again.”
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👨🏿🚀TechCabal Daily – Kenya has a new EV policy
In partnership with Share this newsletter: Lire en Français اقرأ هذا باللغة العربية TGIF What’s better than a daily dose of the latest industry insights in your email? Viewing it as a status on Whatsapp! TechCabal’s Whatsapp channel is coming soon. We’ll bring you more updates as soon as we have them! In today’s edition Nigeria’s Binance case postponed to April 19 Kenya launches new EV policy Nigeria to develop national AI strategy framework Funding tracker The World Wide Web3 Events Crypto Court adjourns Binance tax evasion case till April 19 The scuffle between the Nigerian government and Binance is becoming hard to keep up with. Two days ago, Binance asked the Nigerian government to let its people go. Tigran Gambaryan, who has been detained for about five weeks since flying into the country to resolve Binance’s restricted website access made his first appearance in court yesterday after being charged with a tax evasion charge. ICYMI: Gambaryan was charged alongside Binance’s Kenya-based regional manager for Africa, Nadeem Anjarwalla, who fled Nigeria on March 22, by Nigeria’s tax agency, the Federal Inland Revenue Service. Gambaryan, the former US agent will reappear in court on April 19 after a Nigerian High Court adjourned the case till then. The FIRS also charged Binance for failing to register with it, alongside four other charges: nonpayment of corporate income tax and value-added tax, failure to file tax returns, and cooperation in helping users of its website avoid paying taxes. A Nigerian high court, yesterday adjourned the company’s tax evasion court case till April 8. An impending suit: Gambaryan, who is yet to get the final ruling on his tax evasion case, is the subject of a potential money laundering charge by Nigeira’s anti-graft agency, the Economic and Financial Crime Commission (EFCC). It appears there is no love lost between Gambaryan, leader of Binance’s Financial Crime Compliance unit and the EFCC who claimed to have buddied up to fight fraud and money laundering activities in the country. Premium Times, yesterday reported that the EFCC planned a money laundering charge against Gambrayan, but the anti-graft agency faced a stern battle with Gambrayan’s lawyer who argued that Binance, the company, should be the target of the money laundering lawsuit, not Gambaryan himself. Gambrayan’s lawyer based his argument on the fact that only the representative of a company in Nigeria could be charged individually for a suit. He argued first that Binance had no physical presence in Nigeria and that Gambaryan did not qualify as an agent of Binance in Nigeria. Read Moniepoint’s case study on family-owned businesses Family-owned businesses are everywhere, shaping our world in ways you might not expect. We’ve found some insights into how they work, and we’d love to share them with you. Dive in right away here. Mobility Kenya launches new EV policy Startups across the continent are justling for a top spot in Africa’s nascent electric vehicle (EV) industry. Last year, Possible EVs set up shop in Nigeria to produce up to 10,000 EVs annually. Spiro, an e-mobility company, also signed a $63 million debt financing to fund two electric motorcycle assembly and battery manufacturing plants in Benin and Togo in 2024. Roam, an EV company recently introduced Kenya’s first locally manufactured electric bus. And now, Kenya is setting the stage to attract more EV manufacturers into the country. The news: Yesterday, Kenya launched a national e-mobility draft policy to promote the local manufacturing and assembly of electric vehicles (EVs). The policy, done in collaboration with the state’s trade and investment ministry, will help facilitate the production of EV components and support local battery manufacturing, recycling, and repurposing efforts. The big picture: While the new policy will help reduce Kenya’s reliance on petroleum for its mobility needs and save on petroleum import bills, the e-mobility draft policy is also coming at a time when electric buses are becoming a part of the daily lives of Kenyans. Roam’s electric buses now serve as commute vehicles for Kenyans. The company is also planning to introduce electric buses for Nairobi’s bus rapid transit (BRT) system. Ride-hailing companies are also in the mix. Uber partnered with Greenwheels Africa to make electric motorbike rentals available in the country. Similarly, Bolt recently invested KES100 million ($770,000) to integrate e-mobility solutions into its services in Kenya. No hidden fees or charges with Fincra Collect payments via Bank Transfer, Cards, Virtual Account & Mobile Money with Fincra’s secure payment gateway. What’s more? You get to save money for your business when you use Fincra. Start now. AI Nigeria to develop National AI Strategy Framework Yesterday, Nigeria’s minister of communications, innovation and digital economy, Bosun Tijani, faced a bit of fire on social media. Why? The minister had announced, on Wednesday, that the country will collaborate with 120 researchers, startups and stakeholders to create a plan for implementing AI across the country. These experts would come up with this framework at the National Artificial Intelligence Strategy Workshop scheduled to be held from April 15 to 18, 2024 in Abuja. So why is Tijani facing fire? According to social media, AI is the least of Nigeria’s problems. One poster said, “We don’t even have the basic infrastructure to build AI frameworks on.” Another tweeted, “How do you start researching AI when you don’t have electricity? How will you power the AI?” Nigeria’s tech minister, however, had some answers: Per Tijani, the aim is to co-create a multi-year strategy and action plan for research and AI adoption in the country and a framework for AI adoption in the country. “The need to coordinate and harness the power of AI for national development is a critical element in our journey towards the use of technology to accelerate productivity in our country,” he stated. Tijani emphasised that this was an opportunity to leverage AI, noting its transformative impact on agriculture, education, healthcare, and productivity. The minister highlights that one of the earliest initiatives from the start of his term in office was to properly define
Read MoreNigeria’s stock exchange buys stake in Ethiopia’s first-ever bourse
The Nigerian Exchange Group (NGX) has acquired a stake in Ethiopia’s first-ever securities exchange for an undisclosed amount in a fundraising that has seen the Horn of Africa nation raise $26.6 million, surpassing the target it touted to investors in 2023. The Ethiopian Securities Exchange (ESX) last year set to raise $11.07 million to start operations as part of a larger push by Prime Minister Abiy Ahmed to liberalise and modernise the economy. “We are thrilled to have exceeded all our expectations in terms of the capital raise and are excited by the overwhelming confidence shown by investors in the long-term prospects of both ESX,” said Tilahun Kassahun, ESX chief executive. The Ethiopian government will hold a 25% stake in the ESX through the Ethiopian Investment Holdings (EIH) and its subsidiaries including Ethiotelecom and Commercial Bank of Ethiopia, while private and institutional investors will be allocated a 75% stake. NGX Group is among the top institutional investors that have injected capital into the operationalisation of the bourse alongside FSD Africa, a UK-backed non-profit financial institution, and Trade and Development Bank Group (TDB), the financial arm of the Common Market for Eastern and Southern Africa (COMESA) trade block. “Strategic foreign investments by TDB, FSD Africa, and [the] NGX Group are particularly important in allowing the transfer of technical know-how and best practices as well as other areas of long-term strategic value that we will explore,” Kassahun added. The NGX is one of the largest securities exchanges in Africa with a market capitalisation of ₦58.66 trillion ($41.8 billion) and will support ESX with technical experience in developing the bourse structure, trading rules and marketing segments. The collaboration with the NGX has already helped the ESX develop a rule book to guide its operations. The ESX also closed the fundraising with commitments from domestic investors including 16 local banks, 12 insurance firms, and 17 private entities. The exchange is expected to launch sometime this year, further attracting foreign investors into the populous Horn of Africa nation. While PM Ahmed has moved to liberalise Ethiopia’s economy since coming to power, it is still largely controlled by the state with little private sector involvement. For instance, Ethiopia has no investment banks–suggesting that businesses can only raise capital from commercial banks.
Read MoreNigerian court adjourns Binance executive’s tax evasion case until April 19
A Nigerian high court in Abuja, the nation’s capital, has adjourned the tax evasion case against Tigran Gambaryan, a Binance executive detained since February, until April 19, Bloomberg first reported. Gambaryan who made his first appearance in court on Thursday, was charged with tax evasion by Nigerian authorities, alongside Nadeem Anjarwalla, Binance’s Kenya-based regional manager for Africa, who fled the country on March 22. Both executives were arrested and detained after flying into the country to resolve the company’s restricted website access—which the government blocked on suspicion of manipulating FX prices in unofficial markets. TechCabal reported that the Nigerian government also charged Binance on a four-count charge, including nonpayment of corporate income tax and value-added tax, failure to file tax returns, and cooperation in helping users of its website avoid paying taxes. The government also accused Binance of failing to register with its tax collection agency, the Federal Inland Revenue Service (FIRS), for tax purposes, an offence punishable under Section 8 of Nigeria’s Value Added Tax Act of 1993. Justice Emeka Nwite, presiding over the case, also adjourned the suit against Binance until April 8, when a hearing will commence. In a separate lawsuit, last week, both executives filed a human rights violation case in Nigeria’s Federal High Court, asking the office of the National Security Adviser (NSA) and Nigeria’s anti-graft agency, the Economic and Financial Crimes Commission (EFCC) to release them, return their passports, and issue a public apology. This is Gambaryan’s fifth week in detention. On Wednesday, Binance asked Nigerian authorities to release its detained official, saying he “has no decision-making power in the company and should not be held responsible while discussions are ongoing between Binance and the Nigerian government.” The Nigerian government also has issued an international arrest warrant for Anjarwalla.
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Kenya greenlights local manufacturing and assembly of electric vehicles despite minimal infrastructure
Kenya has launched a national e-mobility draft policy to promote the local manufacturing and assembly of electric vehicles (EVs). The initiative arrives when Kenya lacks the factories or expertise to build EVs entirely within the country. If approved, the policy will enforce zero-emission vehicle (ZEV) sales targets and investment criteria for car manufacturers and assemblers to qualify for government incentives. The policy will also establish clear requirements for local content (using locally sourced materials) in EVs that will be implemented gradually. The policy will further facilitate the production of EV components and support local battery manufacturing, recycling, and repurposing efforts. At the launch of the draft policies, Kipchumba Murkomen, Kenya’s transportation cabinet secretary, noted that “the shift to electric vehicles significantly cuts emissions of greenhouse gases while reducing the petroleum import bill, currently standing at KES 628.4 billion ($4.8 billion). It will also promote local manufacturing and create jobs.” To further promote EVs, Kenya has started issuing green-coloured number plates. The initiative aims to “raise awareness about EVs among the general public and encourage more people to consider switching to e-mobility,” Murkomen added. Kenya begins issuing green-coloured number plates (shown by cabinet secretary of transport Kipchumba Murkomen) to promote EV adoption. Image source: X The policy, launched in collaboration with the trade and investment ministry, will glean from the expertise of the private sector, international investors, and academic institutions to build the necessary EV infrastructure. Kenya is a key player in African e-mobility, attracting prominent EV manufacturers. BasiGo, an electric bus company backed by the CFAO Group, is one of the pioneers of e-mobility in the country. The company’s electric buses serve Nairobi residents as commuter vehicles, popularly referred to as matatu. ROAM Motors, is also introducing electric buses for Nairobi’s bus rapid transit (BRT) system, but is currently offering electric motorbikes nationwide. Ride-hailing companies have also joined the e-mobility movement in Kenya. In 2023, Uber partnered with Greenwheels Africa for electric motorbike rentals. Likewise, Bolt has invested over KES 100 million ($770,000) to integrate e-mobility solutions into its services.
Read MoreBank of Tanzania raises interest rate to 6% amid steady inflation
The Bank of Tanzania (BOT) has increased its interest rate (CBR) from 5.5% to 6% following a meeting held by its monetary policy committee on Wednesday. This adjustment, effective from Q2 2024, is in response to changes in inflation, which remained steady at 3% in Q1, indicating the central bank’s aim to maintain stable prices and promote economic growth. “The decision of the MPC is based on [the] macroeconomic forecast made in March 2024, which requires an increase in the scope of the monetary policy actions to contain the lingering inflation pressures arising from global economic developments,” said Emmanuel Tutuba, the central bank’s governor. Tanzania’s economy grew by 5.1% in 2023, up from 4.7% in 2023. Growth in the first quarter of 2024 was also estimated at 5.1%. This growth was supported by increased public investment, especially in infrastructure, that sought to boost the private sector activity and investment. Q1’s inflation remained under the country’s target of below 5% and regional economic blocs’ convergence criteria. This stability was maintained through monetary policy and sufficient domestic food supply. As of January 2024, the BOT changed its monetary policy approach from focusing on the quantity of money to using interest rates. At that time, BOT said that an interest rate-based policy might give the bank more control over economic conditions. “The implementation of monetary policy in the first quarter of 2024 succeeded in containing the seven-day interbank interest rate within the target band of 3.5-7.5%. Credit was mostly directed to agriculture, mining, transport and manufacturing activities,” BOT said. Under this framework, the BOT sets the CBR based on alignment with low inflation and support for economic growth. The CBR guides monetary policy, allowing for either tightening or expansionary measures. However, it does not fix interest rates offered by banks and financial institutions in Tanzania, which market dynamics will still influence.
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Change or correct your NIN details with the 2024 NIMC self service
The National Identity Management Commission (NIMC) of Nigeria is at the forefront of digitizing the majority of its services, and one of the latest initiatives is its new self service portal for NIN details correction or change in 2024 and beyond. After passing through the NIMC self service registration processes and logging in, users are greeted with a comprehensive list of options for modifying their National Identification Number (NIN) details. From changing names to updating addresses and phone numbers, the portal offers convenience with transparent pricing. However, navigating these changes requires careful attention to documentation and guidelines. Notably, altering critical information such as the date of birth entails specific procedures and prerequisites. Let’s explore the nuances of NIN detail adjustments and the significance of compliance in this digital landscape. Viewing NIN details change options Once you log in after the face capture, you’ll see a list of what you can change on the new 2024 NIMC self-service portal and their correction prices alongside them: NIN Change Of Name costs 1522.5 NGN NIN Change Of Address costs 1522.5 NGN NIN Change Of Phone Number costs 1522.5 NGN NIN Change Of Date Of Birth is the highest priced at 16340 NGN Note that all modifications require support documents. So you need to ensure to have them ready for upload. Change of Date Of Birth details on NIN 2024 Changing your Date of Birth (DOB) is a one-time opportunity, whether through the self-service website or at a NIMC enrollment centre. To initiate this change, users must provide an NPC birth certificate. Before commencing the Date of Birth Modification on NIMC, ensure completion of birth attestation/registration on the NPC website. It’s crucial to note that any subsequent payments for this change after the one-time opportunity will not be refunded nor will the change be effected. NIN change of name Online requirements The self-service website allows multiple changes of name throughout one’s lifetime. However, after three modifications on this platform, further name change requests must be handled at a NIMC enrollment centre. To commence a name change, users must provide a valid court affidavit and government-issued identification displaying their full names. For name changes due to marriage, a valid marriage certificate and a newspaper update are necessary. Change Of Address details on NIN Changing your home address is unrestricted over a lifetime, accessible through both the self-service website and NIMC enrollment centers. To initiate this change, users need to provide either a utility bill, tenancy agreement, bank statement, or a community leader’s attestation. Change of Phone Number Updates to your phone number are permitted multiple times within a lifetime. However, the self-service website only allows three modifications. Upon reaching this limit, any additional phone number changes must be processed at a NIMC enrollment center. To begin a phone number change, users are required to submit a police report indicating the phone number to be updated. Other information on changing your NIN details via the NIMC self-service portal 2024 Once you choose and click any detail you want to change, you’ll be prompted to provide the changes you want to make and to upload supporting documents. Then you’ll make payment with the online payment option which you can use your ATM cards to simply carry out. After the process, you simply wait for a few days for the NIMC system to verify, and your correction will be effected.
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How to register for & use the new 2024 NIMC self service portal
There’s a new self service portal for NIMC details where you can change your name, address, phone number, and date of birth without visiting the NIMC office. So for people who need to correct their NIN details due to issues with JAMB registration, phone number linkage, or bank account linkage, you do not need to leave the comfort of your home to get the corrections done. Here, we have prepared step-by-step instructions with pictures on how to register for and use the 2024 NIMC self service portal and get your desired detail corrected. If you have registered, here is a detailed article on what you need to change or correct any of your NIN details using the NIMC self service portal. Accessing the NIMC self service portal 2024 First, it’s important to ensure you either use your laptop or set your phone browser to desktop view. Be in a well-lit place as you will need a face capture at some point. When you are ready, the first step is to visit the NIMC self service portal at https://selfservicemodification.nimc.gov.ng/ and click “register” if it’s your first time using the portal. NIMC self service registration process Upon clicking register, you’ll be prompted to input your first, last, and middle names, and phone number. If you have a number currently linked to your NIN, it is advisable to use that. Please note that your last name is also known as your surname. Please ensure you input all details the way you currently have them on your NIN. Then go ahead and click next. Face Capture and Email Validation You’ll be prompted to do a face capture. Ensure you’re sitting well-postured facing your webcam or phone camera Watch out for the green prompts above the oval-shaped picture frame. It will usually switch between, “Move closer and move away” and “please hold.” Capture your face against a neutral background. If successful, the validation will go through and you will move to the next stage. Enter your email address and intended password. Your password must have at least 8 characters, including one upper case letter, one lower case letter, one number, and one special character. Validate your email first by clicking the “validate” button next to it. Input the OTP received in your email, then click confirm OTP. Agree to the terms and hit Sign up. Logging in and NIN verification Enter the email address and password you just created. It should log you in and ask you to verify your NIN. Enter your NIN, and if the digits are correct, it will validate and ask you to log back in again. On every login, you will need to do a face capture. So ensure to be face-ready and in a lit environment anytime you want to login. For other processes and requirements to change or correct your NIN details after registering and logging in, please read this.
Read MoreHuawei takes on big cloud providers with $10m credits to Nigerian startups
Huawei, the Chinese technology company expected to report $98 billion in 2023 revenue, will grant cloud credits worth $10 million to 100 Nigerian startups as it attempts to grow its cloud business and win significant market share. The Chinese vendor’s free cloud credit offerings mirror those of cloud giants and competitors, such as AWS, Google Cloud and Microsoft Azure. These free credits help cloud providers onboard clients and the complexity of migration also ensures stickiness and retention after those free credits are spent. However, it will need more than free cloud credits to win a substantial share of the market, especially at a time when many Nigerian startups are looking to reduce costly USD-denominated cloud services bills. While Huawei also charges cloud fees in USD, it claims it plans to switch to payments in local currencies. Despite being relatively new to the cloud computing market, Huawei has secured some major clients; the Chinese fintech startup, OPay, is one of its biggest clients, TechCabal first reported in March. It also counts Eden Life and Feather Africa as part of its clientele. The cloud market in Nigeria and Africa is booming with demand from businesses and operators like AWS, Google Cloud, and Microsoft Azure are increasing their investments in the market. A report by Xalam Analytics showed that demand for cloud computing services in Africa is growing at between 25% and 30% annually. Huawei claims it has its sights on affordability, and has set a target of onboarding 10,000 startups globally by 2025. It currently has onboarded over 3000 startups, some of which are in Africa.
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👨🏿🚀TechCabal Daily – Nigeria puts more passion into energy sector
In partnership with Share this newsletter: Lire en Français اقرأ هذا باللغة العربية Happy pre-Friday Yesterday, WhatsApp was unavailable for two hours in a downtime that should have come to Slack…or Google Meet…or Microsoft Teams, if your company is into that kind of freaky stuff. The downtime affected all Meta products were affected by the glitch, but the company is yet to reveal what is up. This is the first major WhatsApp outage since 2022, but is Meta’s second largest outage in five weeks after another glitch, on March 5, took down Facebook, Threads, and Instagram but left WhatsApp untouched. In today’s edition Nigeria doubles electricity tariffs for Band A users Binance wants Nigeria to release its execs LemFi gets regulatory approval in Kenya Adenia Partners closes $470 million fund The World Wide Web3 Opportunities Economy Nigeria increases electricity tariff prices Nigeria is bringing putting more passion in its energy sector. The country has a long history of poor electricity supply. This lack of power supply has affected the nation’s economy and small businesses alike, with most SMEs resorting to alternatives like gasoline-generating sets and solar generators to power their daily activities. Yet, the Nigerian government spends a huge amount of money—about ₦2.8 trillion ($2.1 billion) from 2015–2022—on subsidising electricity prices for its people, eating into allocations for building roads, and healthcare among others. A recharged thinking: The government is now having a rethink and has removed subsidies for 15% of the population who consume 40% of the nation’s electricity. Only users on Band A—those who receive up to 20 hours of electricity per day—will be affected. At this stage, it is unknown if there are any planned upticks for the other bands. This change also comes as the country battles its ailing national grid which has already collapsed twice this year, and plunged the nation into darkness. In 2023, the grid collapsed over 13 times, and the only solution is to invest more in the sector. What that means is that it will now cost almost three times as much to get electricity as the new electricity tariff has been raised from about ₦66 ($0.050) To ₦225 ($0.17) kilowatt per hour. This also represents a significant shift for small businesses on this band as they may have to raise prices to cope with the new change. A win for DisCos: While Nigerians may face the brunt of the new tariff hike, electricity distribution companies are in for a win. Since the Nigerian government broke its power firm into eleven distribution companies and six generations firms, these power companies have been hurting from losses incurred during their operations. The new move by the government to raise power tariffs has been long expected by the electricity distribution companies as they have clamoured in recent times for a need to increase their fees to help bolster their balance sheet. Read Moniepoint’s case study on family-owned businesses Family-owned businesses are everywhere, shaping our world in ways you might not expect. We’ve found some insights into how they work, and we’d love to share them with you. Dive in right away here. Crypto Binance wants Nigeria to release the detained executive The tussle between the Nigerian government and Binance is still on. Five weeks after Nigeria detained Tigran Gambaryan, a former US Agent and executive of Binance, the crypto behemoth has asked the Nigerian government for his release. ICYMI: Gambaryan was detained alongside Nadeem Anjarwalla, Binance’s Kenya-based regional manager for Africa. Both executives had flown into the country to resolve the company’s restricted website access. Anjarwalla fled the country with a smuggled passport, according to the office of Nigeria’s national security adviser (NSA). In a new statement released yesterday, Binance said Gambaryan, a former US Agent, “has no decision-making power in the company and should not be held responsible while discussions are ongoing between Binance and the Nigerian government”. Human rights violations? Last week, both executives filed a human rights violation suit in Nigeria’s Federal High Court, asking the office of the NSA and Nigeria’s anti-graft agency, the Economic and Financial Crimes Commission (EFCC) to release them, return their passports, and issue a public apology. Binance claims that Gambaryan—who leads Binance’s Financial Crime Compliance (FCC) team and was hired in 2021 to help fix the crypto giant’s complaint issue—has worked with Nigerian law enforcement in the past, providing information that helped tackle fraud and money laundering activities up to the tune of $400,000. The company said Gambaryan’s team facilitated multiple training sessions for Nigerian law enforcement on the role of exchanges in the digital asset ecosystem. As Gambaryan approaches his sixth week in detention, it remains to be seen how the scuffle between Binance and the Nigerian government unfolds. No hidden fees or charges with Fincra Collect payments via Bank Transfer, Cards, Virtual Account & Mobile Money with Fincra’s secure payment gateway. What’s more? You get to save money for your business when you use Fincra. Start now. Startups LemFi gets approval to operate in Kenya In the past two years, startups in Kenya have faced the heat as the country’s apex bank shut them down left, right, and centre for lack of regulatory approval. Flutterwave and Chipper Cash, for example, went through a rough patch after the Central Bank of Kenya (CBK) directed all banks to stop dealing with the company for being unlicensed. Other digital lenders also faced the same problem. In defence, the startups argued that the apex bank’s licensing procedures were sluggish, with some processes extending beyond three years. It seems LemFi might have broken the spell, as the startup, yesterday, announced that it had received regulatory approval from the Central Bank of Kenya less than a year after entering the Kenyan market. In June 2023, the fintech entered the Kenyan market via a partnership with PesaSwap that allowed users send Kenyan shillings to other currencies. The fintech, at the time, also noted that Kenyans using its services would not have to pay any transfer fees. Now, with the
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