Emerging trends and future outlook for cross-border payments in Africa
This article was contributed by Dickson Nsofor, CEO Kora, and Solomon Amadi, SVP of Payments at Moniepoint as part of the Emerging Trends in Cross-Border Payments: A Growth Guide for Stakeholders report authored by Aroghene Ndulu and Paschal Okeke. The “Japa” trend is one of the significant drivers of cross-border payments at the moment. With more people moving abroad, especially to the Western world, there’s a growing need to send and receive money back home. Another key trend shaping the cross border payments ecosystem in Africa is the rise of mobile money platforms like M-Pesa and Momo, which are helping unbanked populations send and receive payments across borders. Nigeria’s economy is also pushing businesses to look beyond local markets. FX gains are becoming more appealing, and earning in stronger currencies is now a priority. Exporters, for example, ship goods to other African countries and beyond, while importers bring in funds. This has increased the demand for cross-border payment systems that handle these transactions. For businesses, operating across borders isn’t just about trade; it’s a way to grow. Expanding internationally gives them access to new customers and more revenue opportunities. Fintech companies are stepping up with APl-driven platforms that provide cheaper and more efficient payment solutions, disrupting the traditional banking model. And let’s face it, a business that can succeed in multiple markets is far more attractive to investors. How is blockchain impacting cross-border payment solutions on the continent? Blockchain technology is still in its early stages regarding cross-border payments in Nigeria and much of Africa. A few local companies, like Zone, are experimenting with blockchain to facilitate transactions, but the overall impact on cross-border payments is minimal. The reasons are clear: adoption and penetration are low due to regulatory uncertainties, negative perceptions, and a lack of widespread advocacy for blockchain-driven solutions. Blockchain is making cross-border payments in Africa faster, cheaper, and more secure. In the past, payments had to go through multiple banks and intermediaries, which caused delays and extra fees. But with blockchain, transactions happen directly between two parties in real-time, eliminating the need for these intermediaries. This is a big deal for African businesses and individuals who rely on fast and affordable payments. Plus, blockchain keeps every transaction on a secure, tamper-proof ledger, which makes fraud much harder. Over time, blockchain will help African countries rely less on foreign currencies and make it easier to trade using local currencies. The role of mobile money Mobile money has transformed access to financial services for people without traditional banking, allowing them to send and receive money directly through their phones. This has brought millions into the financial system. However, its impact varies across countries due to differing regulations. For example, in Kenya, M-PESA allows telcos to store customer funds, which makes them integral to the financial ecosystem. But this comes with risks; if a platform like Safaricom’s M-PESA were to face disruptions, it could cripple Kenya’s economy. On the other hand, Nigeria has taken a more cautious approach, with regulations that prevent telcos from storing funds. This helps avoid over-dependence on any single platform and safeguards competition from fintechs. Intra-African payments are another area where mobile money plays an important role. It can facilitate cross-border transfers, but issues like transaction limits, payment tracking, and data privacy must be regulated first. Telcos collect extensive user data, which could create an unfair advantage if left unchecked. Ultimately, mobile money simplifies transactions and ensures people can send and receive money effortlessly. While it’s unlikely to dominate Nigeria’s financial system the way M-PESA does in Kenya, it will remain a vital transaction option. For customers, the priority is convenience, whether through telcos, banks, or fintech. The goal is to make payments faster, safer, and more accessible. AfCFTA and cross-border payments African cross-border payments will change significantly under the African Continental Free Trade Area (AfCFTA). The agreement opens the door to a more extensive customer base and growth opportunities for businesses already in the payments space. It also encourages the use of local African currencies, which could reduce Africa’s heavy reliance on international currencies like the US dollar. However, If we can develop systems to exchange African currencies directly, without the restrictions many African countries currently face, we could see significant innovations in how payments are made across Africa. This shift could also help stabilise and increase the value of local currencies by creating more demand for them in regional trade. The ultimate goal is to make cross-border payments more manageable and reduce dependency on foreign currencies, which can weigh down trade due to currency conversion costs and rate fluctuations. If it works as intended, AfCFTA will simplify trade and boost intra-African commerce and innovation in the payments ecosystem. Future innovations Al will play a huge role in shaping the future of payments in Africa. With advanced fraud detection and smarter risk management systems, transactions are likely to become faster and more secure. Digital currencies, including cryptocurrencies and central bank digital currencies (CBDCs), also have the potential to reduce transaction costs and speed up cross-border payments by cutting out the need for foreign exchange. Contactless payments will transform how people pay in Africa in the next few years. Imagine being able to use your Nigerian card in Morocco without any hassle. That’s the kind of simplicity we need. The rise of virtual cards will help push this forward. They’re cheaper to get, you don’t have to worry about losing them, and they’ll make payments faster and more secure. Pair that with contactless technology, making it much easier for people to pay without thinking twice. You can download the full report here. _________ Dickson Nsofor is the founder and CEO of Kora, a pan-African payment infrastructure company established in 2017. He has over a decade of experience in Internet and mobile technology companies, where he honed his skills in IT, business analysis, and project management. He has contributed to organisations such as the United Nations and Humaniq, focusing on improving processes and implementing innovative solutions
Read MoreTechCabal Daily – The future of Kenyan banking….is expensive
In today’s edition: A new payment system could cost Kenya up to $200 million || NBS returns, bringing new inflation metrics and a complex outlook || Geely, Auto Mobility target 30,000 car sales in 2025
Read MoreSafaricom, Kenyan banks claim Central Bank’s new payment system could cost $200m
Safaricom and Kenyan commercial banks claim the Central Bank’s (CBK) plan to build a fast payment system (FPS) could cost at least $200 million (KES25.9 billion) and take up to four years to complete. The FPS aims to enhance interoperability across the payments landscape and reduce transaction costs, but Safaricom and the Kenyan Bankers Association (KBA) argue that it could duplicate existing infrastructure and lead to inefficiencies that could slow innovation in Kenya’s financial sector. In their joint report, Safaricom and the Kenya Bankers Association (KBA) recommended that the CBK should instead enhance existing payment systems such as Pesalink—already used for peer-to-peer payments between banks—rather than creating a costly new system from scratch. While acknowledging the potential benefits of FPS, both organisations question the $200 million price tag and lengthy timeline. A key concern raised by KBA and Safaricom is the Special Purpose Vehicle (SPV) proposed to manage and operate the FPS. The SPV would be owned by the CBK (60%), Safaricom (20%), and commercial banks (20%). It would require legislative amendments, including amendments to the Central Bank of Kenya Act, the National Payment Systems Act, the National Payment Systems Regulations of 2014, the e-money Regulations of 2013 and an initial investment of $30 million. The proposed SPV structure would make the FPS a state-owned enterprise under the CBK’s majority control. According to the report, this could introduce bureaucratic delays, slowing innovation. “The creation of an SPV may mean that streamlining regulations that would deliver immediate benefits within the current payment landscape may be delayed until the SPV and FPS are operationalised,” the proposal said. While the CBK has not disclosed whether it will pursue the SPV model or upgrade existing infrastructure like Pesalink or M-Pesa, Safaricom and the KBA suggest enhancing existing infrastructure is a cheaper, timely option. The CBK did not respond to multiple requests for comments. Not suitable for mobile money market Another significant concern is the mobile market in Kenya, one of the most advanced in the world. Platforms like M-Pesa and Airtel Money dominate the landscape, reporting billions of dollars in transaction value annually. According to Safaricom and the KBA, the proposed FPS model may not be suited to a mobile money-oriented market. “It is a high-risk approach as it is an unproven model in a market where payments are predominantly digital and mobile-based. Most FPS implementations from other markets started when cash and/or card payments were dominant,” said the Safaricom and KBA report. While the report does not address the views of other payment service providers (PSPs), Safaricom and KBA advocated upgrading existing payment systems, a model adopted by Zimbabwe. This would mean designating an existing system, such as M-Pesa or Pesalink, as the primary operator of the FPS. Instead of creating a new system, Safaricom and KBA propose broadening the ownership of the existing system to include CBK and other payment service providers, SACCOs, micro-finance banks, and other players who may wish to take a direct stake. Whatever the route CBK takes, payment experts believe that the FPS will lower transaction costs and ease funds transfer across different platforms. “It will create opportunities for smaller players but could also raise entry barriers for them. It will drive innovation in Kenya’s payments industry, with both small and large service providers pushed to offer better solutions,” said Alfred Ongere, former Payless Africa chief technology officer. The existing payment infrastructure is fragmented, with mobile money platforms operating in silos from other financial institutions. Banks, Saving and Credit Cooperative Organisations (SACCOs) and other payment providers need separate agreements to plug into mobile platforms like M-Pesa and Airtel Money. At the moment, Pesalink only caters to banks, locking out other financial institutions. The CBK is expected to issue further guidelines in the coming months. However, the debate over an optimal payment system highlights the delicate balance to maintain Kenya’s progress in mobile and digital payments. .
Read MoreNigeria’s headline inflation quickens to 34.80% in December 2024, puts rate hike in focus
Nigeria’s headline inflation quickened in December 2024 to 34.80% due to increased food prices and heightened consumer spending during the holidays, according to data from the National Bureau of Statistics (NBS). The latest figures, up from 34.60% reported in November, puts another interest rate hike in focus at the next Monetary Policy Committee meeting in February. Food and transport costs were the major drivers of December 2024 inflation. Food inflation eased to 39.84% up from 39.93% recorded in November 2024. “The outlook for inflation in 2025 is tricky considering the rebasing of the inflation basket,” said Samuel Onyekanmi, an analyst at Norrenberger. Oyekanmi expects that inflation will begin moderating by the second half of the year and will slow to the region of 25% to 27% by year-end. The statistics agency rebased its calculation of the consumer price index (CPI) and gross domestic product (GDP). The NBS calculates inflation using a CPI basket that measures the average change in price of goods and services consumed by people daily. The NBS, which previously tracked 740 of those goods and services, increased the CPI basket to cover 960 items. The addition of the new items was to reflect the current consumption patterns, Ayo Andrew Anthony, Head of Price Statistics at the NBS, said Thursday at a sensitisation workshop. New inflation figures based on the new price index will be released at the end of January 2025. “The recent GDP rebasing and CPI reweighting are significant steps forward in capturing the true breadth of economic activity. These adjustments should enhance data accuracy and support more effective planning,” said Olajide Oyadeyi, an economist at Econoday Inc.
Read MorePurple Elephant Ventures raises $4.5 million seed round to scale portfolio startups
Purple Elephant Ventures (PEV), which styles itself as the “world’s first tourism-focused venture studio,” has raised $4.5 million in seed funding. The Nairobi-based venture studio will use the funding to scale its portfolio of startups and launch new ventures focused on addressing the most pressing challenges in Africa’s tourism industry. The round saw participation from investors including Clear Creek Investment B.V, Klister Corp., Fede Pirzo-Biroli (founder of Playfair Capital), Anthony Rock, and Ian McCaig (former CEO of Lastminute.com). PEV is part of a growing list of venture studios offering seed capital, strategic guidance, and mentorship to help startups scale across Africa. Others include Fast Forward Venture Studio, Grone Studios, Ceed Cap, and First Founders. Launched in 2020, PEV helps founders craft hospitality Software as a Service (SaaS) solutions, sustainable procurement for tourism, and energy-efficient solutions for hospitality. The venture studio has launched five startups: Nomad Africa, a travel discovery platform and Kenya’s leading travel publisher and local agency; Kijani Supplies, a procurement tech company specializing in eco-friendly supplies for the hospitality industry; Zafari, a booking platform for African hospitality, streamlining operations for tourism operators; PowerTrip, a cleantech company delivering energy-efficient appliances to hospitality businesses; JOIN Africa, a startup that supports safari guides, created in partnership with Paul English, co-founder of Kayak. “This funding is a testament to the untapped potential in African tourism innovation,” said Ben Peterson, PEV co-founder and CEO. “With this support, we’re poised to revolutionise the industry through groundbreaking travel technology in Africa, fostering economic growth while preserving the continent’s incredible natural and cultural heritage. The future of sustainable tourism in Africa has never been brighter.”
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👨🏿🚀TechCabal Daily – Show me the naira
In partnership with Lire en Français اقرأ هذا باللغة العربية Good morning To help you crush your 2025 learning goals, we’ve curated a list of must-hear tech and business podcasts in Africa. These shows deliver insightful conversations, trend analysis, and entrepreneurial wisdom—from innovative breakthroughs to practical tips for navigating the African market. The Open Africa Podcast, for example, dives into startup stories and fintech solutions while Africa Business Stories spotlights inspiring women like Bunmi Olunloyo, who empowers women through dance. Discover more in our Top 10 list. AWS launches naira payments Sterling Bank staff unhappy with 7% salary increase Nigeria to expand its fibre optic network with $2 million US grant OpenAI welcomes Adebayo Ogunlesi to its Board World Wide Web 3 Events Cloud Computing AWS now accepts naira payments GIF Source: The Nollywood Star Around this time last year, Africa’s tech ecosystem erupted in a conversation on how much tech startups spend on cloud computing. One Nigerian HR-tech startup told TechCabal that they pay up to $80,000 monthly in cloud costs—pocket-clenching costs that now make accelerators and VC firmsallocate cloud credit to new and emerging startups. Google, for instance, gives startups up to $200,000 in Google Cloud credits to startups through its Black Founders Fund, while accelerators like Techstars and Y Combinator give their portfolio companies cloud credits. For startups operating in countries like Nigeria where currency devaluation has doubled cloud costs—as cloud providers like AWS, Microsoft Azure, and Google Cloud price their offerings in dollars—these costs can be a headache. A $1,000 cloud service that would have cost ₦458,000 in early 2023 now costs ₦1.52 million, a 107% increase! As the effects of the naira valuation persisted, local cloud companies—like Okra, Nobus MainOne Cloud, Web4Africa, and Layer3—began positioning themselves as alternatives with one major selling point: allowing customers to pay in local currency. This narrative was an instant hit for startups as they were keen on reducing costs. However, global cloud players are catching on. Yesterday, AWS announced that it will now accept naira payments. In addition to the naira, AWS announced that it will be accepting payments in 7 other other local currencies. AWS’s move to offer naira pricing means that local cloud providers must up their game by providing a unique value proposition. While local cloud providers have built a competitive edge around naira pricing, AWS’s offer of local payment options diminishes that edge. Startups may now find it harder to justify switching to local providers solely because of pricing reasons, forcing local players to innovate or compete on other value propositions. By paying in naira on AWS, startups can better manage their cash flow without worrying about sudden spikes in cloud costs due to dollar fluctuations. AWS’s move to offer naira pricing may also inspire Google Cloud and Microsoft Azure to offer similar pricing in Nigeria. Collect payments Fincra anytime anywhere Are you dealing with the complexities of collecting payments in NGN, GHS or KES? Fincra’s payment gateway makes it easy to accept payments via cards, bank transfers, virtual accounts and mobile money. Get started now. Banking Sterling Bank staff unhappy with 7% salary increase Image Source: ApataTV What excites bank employees more than a raise? A bigger raise. Bankers often joke that their expenses are the only things that inflate faster than their egos—while their salaries stubbornly refuse to keep pace. The latter part of this joke rings true for employees of a Nigerian commercial bank. Months after it introduced a cost-of-living adjustment (COLA) stipend, Sterling Bank, a tier-2 Nigerian commercial bank, raised salaries by 7%. The salary adjustment, first disclosed to employees in an internal memo in early January 2025, is meant to help employees offset the rising cost of living and quickening inflation. But employees want more. Late last year, Nigerian commercial banks raised salaries in response to economic pressures on consumer spending. GTBank, one of Nigeria’s biggest banks, for example, raised salaries by 40%. Union Bank, another tier-2 bank, followed suit with a similar 40% raise. While reviewing compensation is necessary to help employees cope with the economy, it also helps these banks retain talent in an industry where competitors don’t shy away from poaching. Sterling’s salary increase, however, is less than sterling to employees who expected a 20-30% increase, similar to competitor banks. Executive trainees (ETs), previously earning ₦327,000 ($211) monthly, will now take home ₦351,000 ($226). Senior executives (junior roles above ETs) on a ₦500,000 ($322) salary will see their pay rise to ₦527,000 ($340). The salary raise will impact the bank’s bottom line. Banks are known for their cost-efficiency, especially when it comes to employee compensation. Sterling Bank spent ₦22.6 billion ($14.6 million) on personnel expenses as of September 2024, accounting for 21.67% of its total expenses, which stood at ₦104.3 billion ($67.2 million). Some back-of-the-napkin math based on a 7% increase means the bank’s wage bill would be around ₦24.22 billion ($16.2 million). Telecoms Nigeria to expand its fibre optic network with $2 million US grant L-R: Nigerian Minister of Communications, Innovation, and Digital Economy Bosun Tijani with US Deputy Secretary Kurt Campbell. Image Source: Kurt Campbell (X) Nigeria is set to expand its digital infrastructure courtesy of a $2 million grant from the US Trade and Development Agency (USTDA). This funding will expand the country’s fibre optic network by 90,000 kilometres, a move in line with Nigeria’s National Broadband Plan for 2020–2025. Expanding the fibre optic network will provide better internet access to rural areas, help reduce the gap in digital access, and create more jobs. Nigeria’s current internet penetration rate, according to various reports, sits between 40–45%. This is much lower than other countries like Egypt (72%) and South Africa (74%) which have better internet coverage and thriving ecosystems. Sectors like fintech, ride-hailing, and e-commerce in Nigeria rely heavily on the internet. The more people have access to better internet, the greater the reach startups will have. As these startups grow, ecosystems expand. Talents have also been held back by slow internet. Many skilled workers
Read MoreCompetition in the clouds: AWS will now accept naira payments, shaking up local cloud players
Amazon Web Services (AWS), the global cloud leader powering many Nigerian startups and commercial banks, will now accept payments in Naira, alongside seven other local currencies for European customers. Since many Nigerian companies host their services in AWS’s European region due to geographical proximity, this move could significantly lower their cloud costs. This move comes at a crucial time when homegrown cloud providers have been gaining ground by offering local pricing as an alternative to AWS and Azure. In a statement on Monday, AWS explained that this shift will help customers avoid foreign exchange costs and payment friction. “With payments in their local currencies, customers can avoid foreign exchange costs associated with making foreign currency payments,” the company said. “This also removes payment friction for customers in countries where local regulations put limits on the foreign currency amount a customer can access.” This shift is significant for Nigerian businesses, as the naira’s devaluation and macroeconomic pressures have caused cloud costs—often priced in US dollars—to more than double since 2023. By allowing payments in naira, AWS is offering Nigerian companies a smoother and more affordable option for cloud services, addressing one of the key pain points that have driven Nigerian businesses toward local cloud providers. AWS’ move will shift the competitive landscape in Nigeria’s cloud services market. Homegrown cloud providers such as Nobus, Layer3, and Okra’s recently launched Nebula have spent much of 2024 positioning themselves as affordable, local alternatives to AWS and Microsoft’s Azure. Many of these local players emphasized their competitive edge at a time when FX liquidity and volatility meant USD-denominated pricing could push costs up 2-3x in a week. Some even held talks with government agencies at the state and federal level, positioning themselves as potential partners to reduce Nigeria’s reliance on USD-denominated services. The messaging was clear: patronizing local cloud providers is not just a cost-effective option but a way to support Nigeria’s economic resilience. AWS’s decision to accept naira payments comes in response to the growing appeal of local cloud providers in Nigeria. In January 2023, AWS launched its AWS Local Zones facility in Lagos to reduce latency and improve performance for Nigerian businesses—often an important factor since many Nigerian companies host their services in AWS’s European region due to geographical proximity. By offering a new payment option alongside this infrastructure, AWS can solidify its foothold in the Nigerian market, especially as local providers continue to present an attractive, economically aligned alternative. By lowering the barrier for Nigerian companies to pay for cloud services in their local currency, AWS has given itself an edge, but the growing local alternatives may still present a challenge. It’s not just about price anymore—it’s about local relevance and helping businesses navigate the complexities of Nigeria’s economic environment.
Read MoreTop 10 African tech and business podcasts you should check out in 2025
It’s 2025 and the podcasting world is booming, with over 4.19 million registered podcasts globally and more than 2.69 million on Apple alone. Podcasts have become the go-to platform for insightful conversations, expert advice, and fresh perspectives. The tech and business podcasting space is growing rapidly, offering a wealth of information at your fingertips. Whether you’re an aspiring entrepreneur, a tech enthusiast, or just someone hungry for knowledge, we’ve curated the top 10 podcasts you need to listen to in 2025. 1. Afrobility Looking to stay informed on the fast-evolving African tech and business landscape? Afrobility is your perfect companion. Hosted by Olumide Ogunsanwo and Bankole Makanju, this podcast discusses the opportunities and challenges shaping Africa’s digital ecosystem. With expert analysis on startups, investment trends, and market shifts, Afrobility is essential for entrepreneurs, investors, and anyone passionate about Africa’s growth. Episodes: 60 — 90 minutes Category: Business and Technology 2. Investec Focus Radio SA For sharp, bite-sized insights into the South African economy, market trends, and finance, Investec Focus Radio SA delivers. This podcast provides a nuanced take on local and global financial developments, backed by the expertise of Investec’s financial professionals. It’s a must-listen for anyone looking to stay ahead of the curve in finance. Episodes: 20 — 40 minutes Category: Finance and Business 3. African Tech Roundup If you’re looking for stories and strategies shaping Africa’s tech scene, African Tech Roundup should be on your radar. Hosted by Andile Masuku, it brings you engaging interviews with pioneers, innovators, and disruptors from across the continent. This podcast focuses on Africa’s digital transformation, making it a must-listen for tech enthusiasts and entrepreneurs. Episodes: 45 — 60 minutes Category: Technology and Business 4. African Business Stories For those interested in female leadership and innovation, African Business Stories is a standout podcast. It is hosted by Akaego Okoye and highlights inspiring conversations with African women entrepreneurs and leaders across various industries. If you’re curious about women’s powerful contributions to Africa’s business landscape, this podcast offers invaluable lessons and insights. Episodes: 30 — 50 minutes Category: Business and Entrepreneurship 5. The Open Africa Podcast If you’re fascinated by the intersection of tech, startups, and banking in Africa, The Open Africa Podcast is a perfect listen. Hosted by Laolu, Furo, and Nosa, this show mixes insightful commentary with humor, creating an engaging way to learn about Africa’s startup ecosystem. It’s fun, informative, and designed to keep you updated on the continent’s evolving landscape. Episodes: 40 — 60 minutes Category: Technology 6. Pure Digital Passion Pure Digital Passion is a podcast worth checking out for anyone in the tech and digital marketing space. Hosted by Moses Kemibaro, one of Kenya’s leading digital marketers, it covers digital innovation, marketing trends, and Africa’s ever-expanding tech ecosystem. It’s perfect for tech enthusiasts and marketing professionals. Episodes: 40 — 60 minutes Category: Technology 7. Founders Connect Founders Connect is an essential podcast for aspiring entrepreneurs. Hosted by Peace Itimi, it features interviews with successful founders who share their journeys—highlighting their triumphs, struggles, and the lessons learned along the way. Whether you’re just starting out or looking for guidance, Founders Connect offers invaluable insights to help you navigate the entrepreneurial world. Episodes: 30 — 60 minutes Category: Technology and Entrepreneurship 8. Labari Media Podcast Labari Media Podcast is perfect for tech enthusiasts focused on fintech, e-commerce, mobile payments, and AI in Ghana and across Africa. Through expert interviews with innovators and entrepreneurs, this podcast offers a comprehensive view of the African tech ecosystem. If you’re passionate about the future of fintech, Labari Media is your go-to. Episodes: 15 — 35 minutes Category: Technology and Business 9. Techpoint Africa Podcast Exploring Africa’s dynamic tech scene, Tech Point Africa Podcast brings you in-depth discussions on innovation, startups, and the major trends shaping the continent. Whether you’re a tech enthusiast, entrepreneur, or investor, this podcast is packed with insights that will keep you on the pulse of Africa’s rapidly evolving tech ecosystem. Episodes: 30 — 55 minutes Category: Technology 10. The Disrupt Africa Podcast If you’re interested in Africa’s startup ecosystem, Disrupt Africa Podcast is a must-listen. Featuring interviews with thought leaders, founders, and entrepreneurs, this show uncovers the stories of those making a significant impact in Africa’s tech industry. It’s a fantastic resource for anyone wanting to understand the challenges and triumphs of building a startup in Africa. Episodes: 20 — 40 minutes Category: Technology
Read MoreLemfi raises $53 million Series B round, acquires European firm
Lemfi, a remittance startup serving African immigrants across 22 countries, has raised $53 million in a Series B round to support its expansion into Europe through the acquisition of a European firm. The round was led by Highland Europe, a London-based growth-stage investment firm that backs startups with more than €10 million in annualized revenues, and with follow-on investment from existing investors Endeavor Catalyst, Left Lane Capital, Palm Drive Capital, and Y Combinator. This round means the startup has received $85 million in funding since it was founded in 2019 by Ridwan Olalere and Rian Cochran. Lemfi’s expansion into Europe came off the back of a partnership with Modulr, but its acquisition of an unnamed Republic of Ireland-based company will allow it to begin its European operations independently from next month. The startup makes money from transaction fees and foreign exchange spreads across the countries it is present in. The funding will allow Lemfi to acquire more licenses and partnerships as it expands its offerings to include localised services for customers. Lemfi is set to launch a card for customers in the US, the UK and Canada. It will also hire staff as it continues to grow rapidly. Lemfi is now processing $1 billion in monthly payment volume, a significant jump from 2023 when it processed $2 billion in annual transaction volume. The startup has also doubled users, revenue, and transactions over the past two years. Olalere credited the growth to strong adoption in the Asian corridor, which rakes in $160 million in monthly TPV and is growing 30% month-on-month since it launched last year. After expanding into the US in 2023, the startup entered large remittance markets like China, India, and Pakistan in 2024. It entered these markets by poaching C-suite executives from domestic companies like Terrapay, DeliveryHero, and OPay. LemFi Hires Ex OPay COO, Allen Qu to lead China Expansion. LemFi raises $33 million to bring free remittance payments for global migrants
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Sterling Bank raises staff salaries by 7%, but staff expectations fall short
Sterling Bank, a tier-2 Nigerian commercial bank with a market capitalization of ₦174.76 billion, has raised salaries for its over 3,000 employees to help them cope with rising living costs and inflation, sources familiar with the matter confirmed. The salary adjustment, said to be around 7%, was communicated in an internal memo in early January 2025. This move continues a trend among Nigerian banks to review compensation in response to economic pressures on consumer spending. In August 2024, Sterling Bank introduced a cost-of-living adjustment (COLA) stipend, paying ₦75,000 to employees from executive trainee to assistant banking officer levels. It remains unclear if this stipend will continue alongside the new salary structure. While the precise figures are not publicly disclosed, three people confirmed the adjustments are based on employees’ grade levels. Sterling operates a salary banding system with increases typically ranging from 7% to 10%, and recent adjustments have moved many employees to the top of their respective bands. For instance, executive trainees (ETs), previously earning ₦327,000 monthly, will now take home ₦351,000. Senior executives (junior roles above ETs) on a ₦500,000 salary will see their pay rise to ₦527,000. To manage pay increases without promoting employees to higher ranks, Sterling Bank uses a tiered salary structure that includes internal “notches” within each grade level, allowing for raises without formal promotions, according to sources familiar with the bank’s compensation policies. “Instead of moving employees up a grade during an economic downturn, companies may shift them to the higher band within their current grade,” said Chibuzo Ihentuge-Eric, an HR professional. “It’s a sideways adjustment that reflects market conditions.” Sterling Bank did not respond to a request for comments. Despite the salary increase, some employees were disappointed, expecting a larger raise in line with the 20-30% increases seen at other banks. “Considering inflation and the state of the economy, this feels underwhelming,” said one employee who requested anonymity. In late 2024, Union Bank raised salaries by 40%, and GTBank followed suit with a 40% increase. These recent raises are linked to talent retention, a concern in an industry marked by high employee turnover and frequent poaching. Research shows competitive salaries are crucial in reducing employee attrition in Nigeria’s banking industry. Sterling Bank’s profit after tax for the period ending September 2024 was ₦27.4 billion, a 67.07% increase year-on-year. The bank is projecting ₦121.8 billion in gross earnings for the first quarter of 2025. The bank’s personnel expenses reached ₦22.6 billion as of September 2024, a 38.65% increase from the previous year. If the new salary adjustments raise expenses by the typical 10%, the bank’s wage bill would be around ₦24.86 billion. Despite this, Sterling’s wage bill remains one of the lowest among its peers. For comparison, Union Bank reported ₦34 billion in personnel expenses, Fidelity Bank ₦43.6 billion, and FCMB ₦56.5 billion.
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