Early-stage startups, constant support: Oui Capital’s thinking behind investing in Africa
Launched in 2019, Oui Capital, an early-stage venture capital fund’s motto, is to be the first yes that founders hear. The fund has backed 21 African startups at the pre-seed and seed stages, some of its portfolio companies being Duplo, Moniepoint, Akiba Digital, Herconomy and PharmacyMart. These startups have gone on to amass over $1 billion in market value. The sector-agnostic fund has a focus on fintech, software-as-a-service, digital commerce, and healthtech startups. Following the deployment of its $10 million fund within three years, Oui Capital raised its second $30 million fund. With a focus on early-stage startups, the fund says it helps its portfolio companies with fundraising, go-to-market support and acquiring talent. In a YouTube video, Tosin Eniolorunda, the CEO of Moniepoint, shared that the fund helped with seeking product-market fit, traction and introductions to potential investors. “They have also been helpful in hiring, especially with some of our key hires,” he added. Oui Capital, which funds approximately 2% of the companies that apply to it, invests between $250,000 and $500,000 and looks to own between 5% and 10% of its portfolio companies. TechCabal spoke with Olu Oyinsan, the fund’s managing partner, and Oke Ekpagha, a senior analyst, as they shared the fund’s investment thesis and some of its biggest learnings. Oui Capital has been investing in early-stage startups since 2019. Based on your experience, what would you say are the biggest challenges that these startups face? Oyinsan: There are two most important challenges: the first is finding product market fit (PMF). There are a lot of theoretical definitions of PMF, but it’s like trying to run a race and getting on the track that’s going to take you to what the product should do for customers, the type of customers that actually should be using the product, and if they’re paying for it. PMF is everything you need to put in place to start growing. The other one, which is very common, is getting the money you need to build the company. Money is scarce everywhere in the world, and for early-stage companies that don’t have traction, it’s very difficult to raise money. Founders have to lean on their other skills to serve as a proxy for the attractiveness of that company. Does Oui Capital accept startups that do not have product market fit? Oyinsan: The short answer is yes. A majority of the companies we have backed did not have product market fit, and that’s why we are early-stage investors. We have invested in a company with zero revenue and very little customer traction. If you look at our portfolio, what the [companies in it] do today is not what we invested in them for. What made Moniepoint, Maad, Duplo and Akiba Digital successful wasn’t what they were doing when we invested. As early-stage investors, it’s our job and responsibility to invest in places where we can be helpful. It’s like having a co-founder who does not stay in your office because if we own the company together, we have to do everything we can to make sure that this company is successful. It’s what also generates financial returns. You’re more likely to make better financial returns if you invest in a company that doesn’t look successful yet than in one that has it all figured out. Eighty percent of the companies we invest in don’t have PMF. What’s the evaluation procedure like for your portfolio companies? How do you assess which companies you back? Ekpagha: You don’t get what you’d expect to see, you get what the market has in store. Off the bat, there are certain things I’m looking out for. Firstly, how strong is the founder or founding team? Do they have domain expertise that can directly translate into the new venture that they’re trying to build? I also look at the business model: is it a scalable business model? Is it fast-growing in terms of businesses that have been in that space? How big is the market and how fast is it growing? Of course, the companies that we tend to invest in are doing something new and are going to be market leaders, but they could be growing quickly in terms of traction and not be able to grow beyond what the market is going to allow. I also look for any traction that I can use to benchmark the rest of their success against. Typically, the startups we back don’t have major traction for their users or revenue, but we need to approximate and have an idea of how fast they’re growing already and what that could look like in the future. What type of founder does Oui Capital back?Oyinsan: We don’t care where you went to school, what you look like, or what nationality you are. That doesn’t build great companies. Entrepreneurial ingenuity is what builds great companies. I don’t care if you went to Stanford or the Federal University of Technology, Akure. As you can tell, some of the bigger companies, especially in Nigeria, don’t match the pattern [of studying in Ivy League schools], but the ones who match the pattern are often the ones you are writing about that defraud investors! We care about the problem you’re solving, and if you look like you have the grit, guts and expertise to go after it, we will back you. Also, some things, like the market and product, don’t depend on the founders. I was talking to a brilliant founder this morning and I told him that he’s probably pursuing the wrong thing. He’s trying to build another payment company and I told him to take a step back and figure out something else because he probably will not be able to get money from us. Does Oui Capital participate in follow-on investments? Oyinsan: Yes, we do. In our old fund, we had a ratio of about 20% of the fund for follow-on investments. The new fund has a smaller allocation because we noticed that our first cheques have
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Who calls the shots at TechStars-backed GetEquity?
GetEquity describes itself as a marketplace for investment products provided by investment managers globally. The TechStars-backed startup lets users pool their funds to reach the minimum amounts typically required for investments. It previously focused on facilitating VC investments in startups, however, after facilitating $3 million in VC investment, GetEquity has expanded its asset portfolio to include investment options like bonds, commodities, and other fixed-income options that are less risky than investing in startups. [ad] TechStars-backed GetEquity is raising $1 million to add bonds and fixed-income assets Jude Dike and Temitope Ekundayo founded the investment platform in 2021. Chigozirim Ugochukwu, a risk and compliance expert, joined the co-founding team in January 2023. Before joining the team, she informally advised the company at a time when a viral article questioned the legal compliance of the crowdfunding the startup facilitates. She is currently the chief operating officer (COO) of the startup, and she reports directly to Dike, the chief executive officer (CEO). Ekundayo is head of growth and also reports to the CEO. CBN consecutively raises rates as it hopes to crush inflation The startup claims to have about 15 staff including the cofounders. There are no team leads by title. However, some team members are often counted on to make strategic decisions for the company. This TechCabal org chart details the leadership structure of GetEquity. [ad] The leadership team at GetEquity If you would like to showcase the leadership structure of your startup in this way, contact the author of this article: ngozi@bigcabal.com.
Read MoreCBN consecutively raises rates as it hopes to crush inflation
The Central Bank of Nigeria (CBN) has consecutively raised the benchmark lending rate by 200 basis points to 24.75%, from 22.75%, in another aggressive push to contain inflation. Olayemi Cardoso, the CBN governor, announced this today after the bank’s Monetary Policy Committee (MPC) meeting that began on Monday, March 25, making it the tenth consecutive hike since May 2022. The rate hike was expected as the body language in the last meeting signalled a reluctance to reduce borrowing costs until inflation moderates below 30%, a rate which will indicate a healthy economy. Authorities have devalued the naira twice since June and closed the gap with the unofficial market rate, as part of reforms to attract investors. Last week, the bank claimed to have cleared a backlog of unmet foreign exchange obligations. At least four policy experts who spoke to TechCabal expected a 100 basis point hike today. Cardoso hopes that consecutive rate hikes will address Nigeria’s inflation issues at nearly a three-decade high. However, analysts are unsure whether more hikes are needed. Explaining the motive for the hawkish stance, Cardoso said MPC members needed to control inflation to ensure that ordinary Nigerians’ purchasing power is restored in the short to medium term. “Members noted the continued rise in headline inflation was driven largely by food prices because of supply shortages and high cost of logistics distribution,” Cardoso said. According to him, addressing food insecurity is key to containing current inflationary pressures. Experts told TechCabal that the CBN should hold the rates in the coming months, instead of further tightening interest rates. “The full effect of the last MPC meeting is yet to be felt on the economy. The practice is not to meet monthly, but once every two months. They need to weigh and measure,” said Johnson Chukwu, the CEO of Cowry Asset Management. The CBN must find a balance amid the massive expectations ahead of the meeting. The bank has to be wary of the impact of too-high interest rates on the economy and the sustainability of the banking sector, Samuel Oyekanmi, another financial analyst warned. Cardoso said it was a tough decision to make but there was a consensus by the committee to progress with the tightening circle. “Key drivers of inflation remain the strong exchange rate pass through to domestic prices, rising costs of transportation, high costs of energy and other production inputs, lingering insecurity and legacy infrastructure deficit,” he added. President Bola Tinubu’s reforms, while painful for consumers, have led the currency to gain in recent days and improved investment flows. Foreign inflows rose to $2.3 billion in February, driven by renewed interest from foreign investors and a rise in overseas remittances. This figure in the first quarter of 2024 outperformed the $3.9 billion received for 2023. While foreign-investor portfolio trade on the Nigerian bourse increased by 18% in February 2024 from roughly half of that figure at the beginning of the year.
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👨🏿🚀TechCabal Daily – Exits and Evasions
In partnership with Share this newsletter: Lire en Français اقرأ هذا باللغة العربية Good morning What Moonshot goals do you have for 2024? At TechCabal, ours is bringing Africa’s tech ecosystem together for the second edition of the Moonshot Conference! From October 9–11, 2024, at the Eko Convention Centre, Lagos, Nigeria, we’ll assemble Africa’s biggest thinkers, players and problem solvers on a global launchpad for change. If you missed last year’s edition where over 2,000 of you were forced privileged to listen to our CEO’s jokes about money, you can get a headstart this year by getting an early-bird ticket at 20% off. In today’s edition Nigeria charges Binance with tax evasion MTN exits two African markets Access Holding, Coronation Group partner with M-Pesa Nigeria plans to exit FATF’s greylist The World Wide Web3 Opportunities Crypto Nigeria charges Binance with tax evasion Weeks after facing regulatory scrutiny in Nigeria marked by website bans, executive detentions, accusations of illegal activity, and an attempt to mend fences with Nigerian authorities, Binance has found itself in more trouble. The crypto exchange and its two detained executives—Tigran Gambaryan and Nadeem Anjarwalla—are facing tax evasion charges in Nigeria. These charges allege failure to register with tax authorities, non-payment of taxes, and potentially aiding users in tax evasion. In a dramatic twist, one of the company’s detained executives, Anjarwalla, managed to abscond from Nigerian custody. The office of Nigeria’s National Security Adviser (NSA) confirmed that Anjarwalla, Binance’s Africa regional manager, reportedly escaped during a religious observance and allegedly boarded a Middle Eastern airliner using a smuggled passport. Following Anjarwalla’s escape from custody, Nigerian authorities have arrested the personnel responsible for his custody. Security agencies are also working with Interpol to place Anjarwalla on a watchlist and apprehend him. To address a potential website block by the Nigerian government, Anjarwalla and Gambaryan travelled to Nigeria in February 2024. Upon arrival, they were detained as part of a crackdown on foreign exchange speculation. A condition for their release was for Binance to provide the info of Nigeria’s top 100 crypto users. Binance, which noted that it would comply with authorities, also claimed that it has responded to over 626 information requests—since 2020—that have assisted the government’s investigations into financial crimes such as scams, fraud, and money laundering. An unending scrutiny: Last week, TechCabal reported that Nigeria’s Central Bank conducted a 3-day analysis on peer-to-peer trading on Binance, between February 19 to February 21, confirming suspicions that some traders manipulated prices to benefit from the resulting arbitrage opportunity. A large number of Nigerian retail traders were placing significant buy orders for USDT, but ultimately not completing the purchases. Authorities believe these fake buy orders artificially inflated the demand for USDT. This, in turn, is suspected to have contributed to the rapid devaluation of the Nigerian Naira against the US Dollar. Experience fast and reliable personal banking with Moniepoint Give it a shot like she did . Click here to experience fast and reliable personal banking with Moniepoint. Fintech MTN to make continued investments in its fintech MTN is seeking a new round of investments in its fintech arm. CEO Ralph Mupita told investors on a call that MTN was seeking a second round of minority investment in the fintech. The telecom is looking to raise about R35 to R39 billion (approximately $1.8 billion) to boost the business whose transaction volumes grew by a ~32% last year MTN’s mobile money arm has 72.5 million active users of its mobile money services, driven mostly by the continent’s young savvy tech population. Two African exits: The company’s 2023 financials also showed a complete exit from Guinea-Bissau and Guinea-Conakry. In Q3 2023, Mupita had told investors that the telecom might exit the two countries, and Liberia, as the markets represent some of its smallest across West and Central Africa with all three contributing just 1.2% to MTN’s revenue in 2022. Across both Guineas, the telecom controls a secondary chunk of the market share, about 30%, beaten out by Orange Mobile which controls over 60% of the market share in both countries. A higher calling: This move will allow MTN to focus on Ghana, Cameroon, and Cote d’Ivoire, stronger markets in the West and Central Africa region which collectively contribute 18.6% to the group’s revenue, over other West and Central African (WECA) countries that contribute 7.3% to the firm. Fintech Access Holding, Coronation Group partner with M-Pesa to dominate African remittances Two weeks after Aigboje Imoukhuede returned as CEO of Access Holding, the company revealed its intentions to procure Kenya’s National Bank. In its relentless pursuit of regional expansion, Access Holdings has announced a new partnership with Safaricom, Coronation Group, and M-Pesa Africa, to dominate the remittance market in East and West Africa. Forging regional dominance: To ease money transfers across Africa, the first phase of the partnership will target remittance powerhouses: Nigeria, Kenya, Ghana, and Tanzania. It combines Access Holdings’ massive reach of over 60 million customers, Coronation Group’s tech muscle, and M-Pesa’s dominance in Kenya’s mobile money—96.5% share—to create a smoother remittance experience. Regulatory approval from Kenyan authorities is pending before the collaboration can take full effect. Zoom out: The remittance market in Africa is experiencing significant growth, with Nigeria and Kenya ranking as the first and third-largest recipients of diaspora remittances in sub-Saharan Africa, according to the World Bank. In 2023 alone, Nigeria received 38% of the total $58 billion remittance inflow to the region. 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. Economy Inside Nigeria’s plans to unplug from FATF’s grey list Nigeria is among the global hotspots for money laundering and terrorism financing. Last year, the Financial Action Task Force (FATF), the global watchdog for money laundering and terrorist financing groups, placed Nigeria on its grey list. A grey list? Countries in the FATF’s grey list are
Read MoreMTN exits two African countries in a bid to refocus on high-growth markets
MTN Group, Africa’s largest network operator by subscriber base, has accepted an undisclosed offer from Africa-focused telecommunication service, Telecel, for the sale of its equity interests in MTN Guinea-Bissau and Guinea-Conakry, as it looks to exit smaller markets in the West and Central Africa (WECA) region. MTN revealed this development in its 2023 financials. A spokesperson for the telco confirmed the sale of the business segments but declined to comment on how much the sale would cost. Further, in the aforementioned report, MTN shared that its Guinea-Bissau and Guinea-Conakry businesses have been classified as held for sale as of December 31, 2023. “Telecel, an established telecoms operator with a significant presence in Africa, is well positioned to drive the growth and further development of these operations and contribute to technological and economic progress in these markets,” a note in its financials said. This move will allow MTN to focus on Ghana, Cameroon, and Cote d’Ivoire, stronger markets in the West and Central Africa region which collectively contribute 18.6% to the group’s revenue, over other West and Central African (WECA) countries that contribute 7.3% to the firm. MTN Guinea-Bissau recorded some poor performances after it breached a loan covenant as result of its negative EBITDA performance. (EBITDA means Earnings Before Interest, Taxes, Depreciation, and Amortisation.) The process of converting MTN Guinea-Bissau’s financial results into its primary currency resulted in a loss of R1.69 billion ($89,392,809), per its annual report.
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Announcing the second edition of the Moonshot Conference
Moonshot by TechCabal returns in October! Moonshot is the conference that brings together Africa’s tech ecosystem in person to network, collaborate, share insights, and celebrate innovation on the continent. At TechCabal, we believe that there is value in bringing together the brightest problem solvers, businesspeople, and innovators on the continent to meet and create and change our world. And so, with Moonshot, we are building a global launchpad for that change to happen. Last October, we hosted over 2,000 of you in Lagos, Nigeria; you were with us for two days of light-bulb conversations on the wins and potential in African innovation. We had five content tracks: the future of commerce, big tech and enterprise, emerging tech, the startup festival, and the creative economy. We brought on stage an eclectic lineup of guests for these conversations, including Nigeria’s minister of communications, innovation and digital economy, Bosun Tijani; ex-director, Google West Africa, Juliet Ehimuan; Microsoft Engineering’s Nnamdi Orieke; and several guests from the world of tech, business, and the creator economy. If you didn’t attend last year’s Moonshot, go to our YouTube channel to catch everything you missed. We’ll look forward to seeing you and your friends at this year’s edition in October. In his welcome address at last year’s conference, Tomiwa Aladekomo, CEO of Big Cabal Media (parent company of TechCabal), stated that Moonshot is about building radical or innovative solutions to big problems—“an opportunity to talk to people who are passionate about solving problems”. That mandate hasn’t changed. If anything, it has gotten more robust as we prepare to once again host you for three days. It will be three days of smart conversations with business leaders and innovators, from October 9–11, 2024, at the Eko Convention Centre, Lagos, Nigeria. Tickets are on sale starting today! You can get 20% off on early bird tickets by clicking here. See you at Moonshot!
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Next Wave: Showmax is promising, but it needs to fix a few technical basics
Cet article est aussi disponible en français <!– In partnership with –> <!–TopBanner Join us for TechCabal Battlefield, Moonshot’s startup competition where you can showcase your startup idea to a global audience and an esteemed panel of judges and stand a chance to win up to 2.5 million naira in funding for your business! Click to register for TC Battlefield First Published 24 March, 2024 2024 is shaping up to be a challenging year for streaming platforms in Africa after Showmax, the continent’s leading video-on-demand platform, revamped to become Showmax 2.0. However, the change runs deeper: following years of negotiations with potential business partners that saw NBCUniversal pump $177 million into the platform, Showmax secured additional collaborations, including HBO and Sky. Its streaming technology has received a boost and is now leveraging Peacock’s technology. The company has also set higher ambitions to reach 50 million subscribers within five years. However, has it set such a high target and neglected the basics? As of November 2023, Showmax recorded 2.1 million subscribers in Africa. Its main rival, Netflix, saw a decline in subscribers, dropping to 1.8 million from the 2.6 million it registered two years earlier. This means that Showmax now claims the title of Africa’s premier streaming service with a market share of 38.7%, while Netflix comes in second at 33.5%. Amazon Prime Video picks the third position with a 5.6% market share and 300,000 subscribers. Prime Video, however, seems to have shifted its focus away from the African and Middle Eastern markets, suspending the production of original shows in the region to concentrate on Western markets. Market share of streaming platforms in Africa Showmax’s upper hand With these numbers, it is clear that Showmax, partly owned by MultiChoice, is doing something right. Its biggest advantage lies in its grasp of local culture and preferences. This has enabled Showmax to understand Africa’s diverse cultures, languages, and tastes. Such understanding is essential for selecting content that appeals to local viewers, including culturally-significant shows, films, and original productions. For instance, Showmax tailors its campaigns and promotions in countries like Kenya using local languages such as Swahili and Sheng’. Some of its local productions are aired in Swahili. Next Wave continues after this ad. Technology in Africa has grown in leaps and bounds. While the continent has made strides in increasing overall connectivity, women are being left behind. Women account for roughly half of the population and despite the progress made in recent years, they account for a disproportionate—and increasing—share of the global offline population, with South Asia and Sub-Saharan Africa having the world’s widest gender gap. But why is this the case? What barriers are preventing women from fully participating in the tech industry? Join us on Wednesday, March 26th at 11AM (WAT) along with key players in digital inclusion and technology to explore these questions and potential solutions. Register here. Besides uniquely tailoring its content catalogue to suit African viewers’ tastes and interests through local languages, regional talent, and relevant themes, the platform also produces original African content, such as locally-made films and series, including multiple editions of The Real Housewives reality shows in Kenya, Nigeria, and South Africa, attracting a broader audience. These advantages, among many others that have not been mentioned, are why people pay for Showmax. Yet, Showmax can still do more. Next Wave continues after this ad. Talent PEO Africa launches in Kenya, offering comprehensive HR solutions for businesses. From EOR services to recruitment and HR consulting, we simplify operations for seamless growth. Partner with us to tap into Kenya’s talent, navigate regulations, and achieve success. Contact us at www.talentpeo.com or kenya@talentpeo.com. Just fix the basics After axing Showmax Pro, which allowed subscribers to watch live games on their devices, Showmax 2.0 should have found a better way to allow customers to at least watch the Premier League (it is only available on mobile) on big screens. Yet, this is not supported now. Showmax Premier League (mobile) is a stripped-down version of what Showmax Pro once offered. As the name suggests, it exclusively airs English Premier League matches, skipping live matches from other leading leagues such as La Liga and Serie A. This is what made Showmax Pro so attractive. Why? Besides using direct screen mirroring methods like Miracast or a type-C-to-HDMI adaptor for a cable connection, there’s currently no way to mirror your mobile screen to a TV while using Showmax. This technical issue is due to Showmax’s digital rights management (DRM) protocols. It is an inconvenience that contradicts the purpose of paying for a streaming service, as users expect seamless access to content. However, this restriction is a deliberate tactic to separate Showmax from DStv Stream, a digital version of the traditional DStv service with a robust games catalogue. Partner Content: Read: FirstBank launches fourth Digital Xperience Centre in Banana Island here. Showmax also needs to increase the number of concurrent screens from two to more; at KES 1,000 (about $8), customers should be able to view content on more screens simultaneously, considering that rivals offer support for up to four screens for nearly the same price. During the FIFA World Cup 2022, Showmax supported 4K streams , showing its capability to deliver high-quality content and streams. While Showmax 1.0 was limited to HD quality, the upgrade to 2.0 has boosted this to full HD. This is a welcome improvement, but in modern times, 1080p is inadequate and customers expect better because its underlying Peacock tech supports 4K streams in other markers. The transition to Showmax 2.0 has also been accompanied by multiple technical issues. Customers encountered issues accessing the new Showmax app on their TVs, while others experienced difficulties signing into their accounts. Those who managed to log in reported performance issues, including instances where the app froze for a long time. Customers in countries such as Kenya complained about the inability to pay for subscriptions via mobile money (Showmax assured them that this issue would be addressed soon). The migration process was not
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Court documents show that Nigeria has charged Binance with tax evasion as executive escapes detention
Nigerian authorities have formally charged Binance and its detained executives Nadeem Anjarwalla and Tigran Gambarya with tax evasion, TechCabal can report. The office of Nigeria’s National Security Adviser (NSA) also confirmed reports that Anjarwalla escaped from detention and fled the country. The government said Binance failed to register with the Federal Inland Revenue Service (FIRS), Nigeria’s tax collection agency, for tax purposes, an offence punishable under Section 8 of the Value Added Tax Act of 1993, according to court documents seen by TechCabal. The crypto exchange was also accused of non-payment of value-added tax and company tax, and failure to file tax returns, said a charge filed before a Federal High Court in Abuja. Binance was also accused of aiding customers to evade taxes through its platform. The FIRS confirmed the charges, per reporting from Bloomberg. Anjarwalla, a UK citizen, and Gambaryan, a former US Internal Revenue Service special agent, have been in detention since February 26. The duo came to Nigeria when the government threatened to block access to the company’s website as part of a crackdown on forex speculation. On Monday, Premium Times reported that Anjarwalla escaped from the Abuja guest house where he and Gambaryan were detained after he was led to a nearby mosque to pray. He is believed to have flown out of the country using a Middle East airliner, the report said. The office of the NSA said he fled Nigeria using a smuggled passport. “Security agencies are working with Interpol for an international arrest warrant for the suspect,” it said in a statement. Binance’s regulatory woes in Nigeria are in connection with a push by the government to halt speculation on forex trading, following volatility in the price of the naira. Last week, TechCabal reported that Nigeria’s central bank analysed peer-to-peer trading on Binance in February, confirming suspicions that some traders manipulated prices to benefit from the resulting arbitrage opportunity. A court ruling also mandates Binance to share user data with the Economic and Financial Crimes Commission (EFCC). Binance, which has disabled naira services on its platform, said it will comply with authorities. The company claimed that since 2020, it has responded to over 626 information requests that have assisted the government’s investigations into financial crimes such as scams, fraud, and money laundering.
Read MoreAccess Holdings, Coronation Group ink deal with M-Pesa to tackle regional remittance
Access Holdings, led by Aigboje Aig-Imoukhuede, is pushing for the biggest share of the remittance market in East and West Africa. The Holdco is merging with Coronation Group to forge a partnership with Safaricom and M-Pesa Africa to provide a remittance corridor between East and West Africa. Access Holdings recently made its biggest play in East Africa with the acquisition of the entire issued share capital of National Bank of Kenya Limited. “This partnership encompasses more than a convergence of capabilities; it signifies the fusion of collective expertise, resources, and an unwavering commitment to drive financial inclusion, empowering millions throughout Africa,” Aig-Imoukhuede said. Nigeria and Kenya are the first and third largest recipients of diaspora remittances in sub-Saharan Africa, data from the World Bank’s Migration and Development Brief report shows. In 2023, remittances to Nigeria accounted for 38% of the total $58 billion remittance flows to the region, growing by 2%, while Ghana and Kenya, posted estimated gains of 5.6% and 3.8%, respectively. As the largest consumer bank in Africa with over 60 million customers in 21 countries, Access Bank will significantly boost its remittance business by tackling the challenges customers face in making remittances within and outside the continent. The collaboration, which is subject to approval from the Kenyan financial authorities, will see the players connect more than 60 million customers and 5 million businesses across 8 countries and process more than $1 billion a day in transaction value. Access Holdings which has a presence in 14 African countries and is the largest consumer banking institution, is expected to provide technology-infused financial services and Coronation Group will bring its technology expertise to the deal. M-Pesa, the mobile money platform of Safaricom, currently dominates the mobile money market in Kenya with a 96.5% share of the market. Another report has shown that 32% of remittances in Kenya are through mobile money operators. But M-Pesa is facing a future separate from Safaricom. In December 2023, Kamau Thugge, governor of the Central Bank of Kenya, said plans to split M-Pesa from Safaricom were ongoing to minimize shocks. “African countries trade more with nations outside the continent than within themselves. Initiatives such as the African Continental Free Trade Area (AfCFTA) seek to address the lack of intra-continental trade. This partnership with Safaricom, Coronation Group and Access Holdings seeks to explore remittance corridors between East and West Africa, bringing alive the AfCFTA spirit,” said Sitoyo Lopokoyit, managing director, M-Pesa Africa. The first phase of the collaboration will concentrate on the biggest markets along the East and West African corridor, including Nigeria, Kenya, Ghana, and Tanzania.
Read MoreTechCabal Daily – A $40 million glitch
In today’s edition: Ethiopia’s largest commercial bank loses $40 million in glitch || Nigerian content creators can now make money on Instagram and Facebook || Meta and SA partner to fight electoral misinformation || ICASA to reduce call costs in SA
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