August 19th, 2023
 

Africa’s Weekly Fintech Review

---

• M-Pesa goes live in Ethiopia
• Founders Factory Africa raises $114m
• Mastercard acquires stake in MTN’s fintech business
• Moniepoint enters personal banking market
AND MORE!

Safaricom launches M-Pesa in Ethiopia 
“Safaricom, which is part owned by South Africa’s Vodacom (VODJ.J) and Britain’s Vodafone (VOD.L), launched its mobile network in [Ethiopia] last year… It became the first private telecoms provider after the government in 2019 liberalized a sector that had long been dominated by the state-controlled Ethio Telecom.” Nasdaq. 

Kaduna State becomes first state to domesticate the Nigerian Startup Act
“As of March 2023, only 12 of the country’s 36 states had indicated an interest in domesticating the Act…Of the twelve, Kaduna State has become the first to domesticate the Act following the signing of a law for the Development of Tech-Enabled Startups in Kaduna State. The state governor, Senator Uba Sani, signed the bill on Wednesday, July 12, 2023.” Techpoint.africa. 

Worldcoin ignored orders by the Kenya Office of the Data Protection Commissioner in May to cease iris scans in the country
“The ODPC had in May this year instructed the crypto startup to stop iris scans and the collection of facial recognition and other personal data in Kenya, a letter sent to Worldcoin and seen by TechCrunch shows. Tools for Humanity, the company building Worldcoin, did not stop taking biometric data until early this month when Kenya’s ministry of interior and administration, a more powerful entity, suspended it following its official launch.” Techcrunch. 

CcHub CEO named Nigeria’s Minister of Communications, Innovation, and Digital Economy
“After scaling through a grueling ministerial screening, Bosun Tijani has been named minister of communications, innovation, and digital economy, according to a list conveying ministerial portfolios unveiled on Wednesday. The CcHub CEO, whose nomination has signified new heights for Nigeria’s tech ecosystem, had faced opposition from lawmakers over his critical tweets about Nigeria’s politics and politicians.” TechCabal. 

Banking & Telecom Activity

• Mastercard to acquire minority stake in MTN’s fintech business; Mastercard also invested in part of Airtel’s mobile money business in 2021

Startup Activity

 Egypt – Fintech giant, Fawry, announces plans to add business lending to its portfolio after receiving preliminary approval from the Financial Regulatory Authority 
 Egypt – Jumia looks to soon launch Buy Now, Pay Later solution in Egypt as the company aims to drive usage of its JumiaPay app
 Ethiopia – Private mobile money service, Kacha, receives approval from National Bank of Ethiopia to launch full-scale commercial operations
 Ghana – AgriTech startup, Oyster, raises $310k USD in grant and debt funding to help the company scale its mission
 Kenya – eCommerce startup, MarketForce, is raising $1m USD through crowdfunding platform, Capitalize
 Kenya – Institutional lending startup, Ed Partners, raises $1.5m USD in debt funding to provide financing to private schools
 Nigeria – Fintech startup, Moniepoint, introduces consumer app and debit cards as the company enters the personal banking market, challenging OPay and PalmPay

Investor Activity

• Founders Factory Africa raises $114M USD from Mastercard Foundation and Johnson & Johnson Impact Ventures 

Featured Article

How to de-risk your investments as an angel investor – Levi Cee
“A cohesive and capable team is often indicative of a startup’s potential for success. There’s a startup adage, “Invest in people, not just ideas”, which holds profound truth in the context of angel investing. The founding team’s expertise, experience, and cohesion are critical factors that significantly influence a startup’s journey.” Benjamindada.com