Here is your weekly wrap-up of African FinTech and Investment news, brought to you by Monetix.io. Get the insights and references you need to navigate business in the African market.
What is inside?
- The Neobanking Sector Gains Momentum in the Middle Eastern and African Region
- Flutterwave announces key executive appointments with a strategic emphasis on risk management, compliance, and partnership development.
- IFC’s Investment in Emerging Private Equity Fund Focused on Financial Inclusion Startups in Africa and Asia
The African fintech industry continues to grow and innovate, with several recent developments highlighting the potential of digital finance in the region.
The Neobanking Sector Gains Momentum in the Middle Eastern and African Region.
Neobanks are gaining traction in the Middle East and Africa (MEA) region, addressing challenges in traditional financial services access. The Fintech Times identified 45 neobanks, primarily digital banking arms of traditional banks in the MEA. Examples include Liv, MashreqNeo, Hayyak , Pepper, Ila Bank, meem, and AKÖde. Independent neobanks like NOW Money, Rise, and Yap in UAE, and dopay in Egypt, collaborate with traditional banks for seamless services. Saudi Arabia and the UAE issued digital banking licenses, with Saudi Arabia leading in 2021. The UAE granted licenses to Al Maryah Community Bank, Zand Bank, Wio Bank, and Naqd. Israel launched its first digital bank, ONE ZERO BANK.
Regulatory efforts in Egypt and Qatar and advancements in Africa are noted. South African neobanks Bettr.App and TymeBank lead with 6.5 million and 4 million customers. Chipper Cash, Alat, and Zazu follow. Orange Bank, Kuda, and FairMoney in Africa are key players. The MEA digital banking industry grew by 52% from 2021 to mid-2023, driven by consumer adoption and favorable demographics. Sub-Saharan Africa witnessed a 27% annual increase in digital banks from 2012 to 2021, driven by fintech innovation and financial inclusion goals. Learn more.
Flutterwave announces key executive appointments with a strategic emphasis on risk management, compliance, and partnership development.
Flutterwave, an African paytech company, has made strategic executive appointments to support its global expansion efforts. Maresh Mohan, with over 25 years of experience, joins as the Chief Risk Officer, overseeing risk management, compliance, and governance. Stephen Cheng, with 20 years of experience, is appointed as Executive Vice President, Global Expansion and Payment Partnerships, focusing on acquiring licenses and forming strategic partnerships for global market entry. Amanda Ortega, with more than two decades of banking experience, becomes the Head of Compliance, US, responsible for regulatory standards in North America. Other senior hires include Steven Huynh, Chris Davis, and Adewale Ayantoye, each bringing valuable expertise in risk management, compliance, and financial operations from notable companies such as Western Union, Etsy, and Square/Cash App. These appointments aim to strengthen Flutterwave’s position in the global market. Learn more.
IFC’s Investment in Emerging Private Equity Fund Focused on Financial Inclusion Startups in Africa and Asia
The IFC – International Finance Corporation (IFC) has announced a $75 million equity investment in Apis Growth Markets Fund III, a private equity fund managed by Apis Partners LLP. The fund aims to support mid-cap financial service providers in Africa, South Asia, and Southeast Asia, promoting financial inclusion through technological innovations. The focus includes embedded finance, commerce enablement, and environmental, social, and governance monitoring. IFC has allocated an additional $25 million for selective co-investing with the fund in Apis portfolio companies. The initiative aims to drive sustainable economic growth, job creation, and enhance financial competitiveness in countries such as Egypt, India, Indonesia, Kenya, Nigeria, and South Africa. IFC, in its second investment with Apis, also aims to improve gender diversity in the investment team and the fund’s portfolio companies. Learn more.
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