July 15th, 2023
 

Africa’s Weekly Fintech Review

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• Nigeria expected to be world’s 5th largest economy by 2075
• US court ruling on Ripple’s XRP sees soaring price
• Access Bank acquiring Standard Chartered subsidiaries in 4 countries
• GTBank app launch leaves dissatisfied customers 
AND MORE!

Goldman Sachs projects Nigeria to become the world’s 5th largest economy by 2075 
“In the report on Monday, the American multinational investment bank and financial services company forecast that China will be the world’s biggest economy with $57 trillion. India is expected to be the second with $52.5 trillion, the United States to be third with $51.5 trillion and Indonesia to come fourth with $13.7 trillion… Nigeria overtaking the like of Germany, Russia and Japan in 52 years’ time.” Continue reading. 

Ripple’s XRP witnesses major upward price moves after US court ruling 
“On Thursday, a court ruling brought an end to SEC’s 3-year-long crusade against Ripple, the issuer of the token. Recall that in 2020, the SEC sued Ripple for its supposed breach of the US securities laws. Following the lawsuit, several exchanges like Coinbase and Kraken were forced to delist XRP to avoid facing the regulator’s wrath… While the court ruled in favor of the SEC regarding XRP’s institutional sales, Ripple won when it came to programmatic sales and “other distributions.” This distinction was based on the premise that institutional investors tend to have more behind-the-scenes knowledge about token activity as compared to retail investors.” Continue reading. 

Egypt overtakes Nigeria for venture investment from June 2022 – June 2023 
“Egypt led in the total equity funding raised by start-ups in Africa from June 2022 to June 2023, toppling Nigeria… The North African country surpassed Nigeria – the continent’s largest economy – as entrepreneurs raised $540M USD from June 2022 to July 2023, the African Private Equity and Venture Capital Association (AVCA) said in a report. Although this was a 25% decrease from the $710 million raised the previous year, it was the least decline among the big four African countries that raised the most financing, the report showed.” Continue reading. 

Banking & Telecom Activity

• Safaricom plans to enter the venture capital game with two new subsidaries as the company looks to play a bigger role in Kenya’s tech industry 
• Access Bank completes negotiations to purchase Standard Chartered Bank subsidiaries in Angola, Cameroon, Gambia & Sierra Leone 
• GTBank‘s new app debuts to dissatisfied customers complaining that the new app does not work and has left them unable to access banking services 

 

Startup Activity

 Egypt – Fintech startup, Exits MENA, extends pre-seed round to $1.25M USD after recently obtaining a license from Egypt’s Financial Regulatory Authority (FRA) 
 Nigeria – HR tech startup, Propel, raises ~$2.74M USD to drive the roll-out and adoption of its community-as-a-service platform 
Southern Africa – World Bank awards 10 Southern African fintech startups with $5K USD each to help bridge the gap in financial access in underserved communities 
 

How Zambia’s national debt restructuring can boost country’s tech ecosystem – Ephraim Modise in TechCabal
“After Zambia announced a debt restructuring deal with creditors, economists are hailing the move as a step in the right direction.  Many also expect the restructuring deal to have an impact on the country’s technology ecosystem. Zambia’s tech ecosystem… has had a tough time attracting venture capital, unlike rival continental hubs like Nigeria, Kenya, and South Africa. Many expect that the restructuring will help rally investors to the southern African nation’s ecosystem, spurring growth.” Continue reading.