The growing number of fintechs in Africa is comforting many countries in their ambition to develop cashless economies. In Ethiopia, innovative solutions are being shaped to accelerate this development.

One of them is ArifPay, a fintech solution developed by a local startup of the same name. The solution is an app that allows users to transfer, save and receive money directly with their mobile phones. The fintech was founded in 2021 by Habtamu Tadesse (pictured, center) and has already raised over $3.5 million in expansion funds. With his startup, the entrepreneur seeks to provide convenient, innovative, safe, and secure electronic payment processing services and platforms for the Ethiopian market.

“ArifPay aspires to make a significant contribution to the financial sector by offering digital-based payments services that meet the needs of consumers and merchants towards cash-lite transactions in line with the national agenda of the digital economy,” Habtamu Tadesse said. “We also believe ArifPay will support the country’s aspiration towards building a digital economy by empowering businesses and entrepreneurs who are looking for digital payment solutions to digitalize their business and services deliveries,” he pointed out.

The app is available on both android and iOS systems. Merchants using the app will be able to make electronic invoices, record taxes, and perform 100% cashless transactions with their clients if they also use ArifPay.

In addition to the mobile and web platforms, the fintech has developed a mobile point-of-sale system that will allow ATM cardholders to conduct electronic transactions on smartphones.

Adoni Conrad Quenum

It is sometimes challenging to send money to relatives in Africa because of the high fees charged by transfer companies. The situation has improved in recent years, with tech entrepreneurs developing innovative solutions to address the issue.

Yalla Xash is a fintech solution developed by a Moroccan eponymous startup. It allows users to quickly send money to Canada, Senegal, and Côte d’Ivoire, via its mobile app.

Using its mobile app -Android and iOS apps, registered users can send funds, which will be available for withdrawals in cash within 30 seconds. For bank transfers, it takes a max of 48 hours to clear.

The startup claims its withdrawal fees, which start from CAD1.99 (US$1.5), are up to six times lower than the competition. It always sends SMSs to notify recipients of incoming transactions and the details of the specific transactions. Also, once the funds sent are withdrawn it sends SMSs to senders informing them of the successful withdrawal.  

Currently, PlayStore data shows its Android app has been downloaded more than 5,000 times. After the Covid-19 pandemic, it recorded a 35% rise in transaction volume and is steadily gaining ground in Africa. It has over 4,300 pickup points in Morocco. In June 2021, it announced the raise of MAD6 million (US$560,000) from the Maroc Numeric Fund, which was seduced by its solution and social impact.  

Adoni Conrad Quenum

He launched his fintech startup after a rich professional experience accumulated while working for national and international firms. His ambition, through the startup, is to streamline payments in Africa. 

Nader Abdelrazik (photo) is the co-founder and CEO of MoneyHash, a fintech startup founded in 2020. With MoneyHash, he built an API that allows large organizations operating in the Middle East and Africa (MEA) to collect payments. 

He explains that “MoneyHash’s main goal is to give businesses in the region the ability to upgrade their tech especially regarding such a sensitive piece: payments.”  

“We aim to be the leader when it comes to building and maintaining a payment infrastructure, and to do so, our impact has to be empowerment and growth of companies that use us,” he adds. 

In February 2022, Moneyhash secured US$3 million in pre-seed financing, to expand in Sub-Saharan Africa. On October 20, 2022, it announced the launch of its digital solutions in new markets, including Nigeria, Kenya, and South Africa.

Nader Abdelrazik, who nurtures great ambitions for the fintech startup, wants to support that growth plan by contributing his rich professional experience, which started back in 2008. That year, he was a summer trainee in the quality department of the pharmaceutical technology company GlaxoSmithKline. Two years later, he joined Siemens as a trainee business developer before being hired, in 2011, as an entrepreneurship head coordinator by the Egyptian non-profit organization INJAZ Egypt.

From 2012 to 2014, he was a research assistant at the Nile University and a strategy project manager for Meshka Co-Learning Space, from 2014 to 2015. In 2016, he worked as a business designer for Conservation International Suriname and the global expansion consultant for  Kiron Open Higher Education. Then, the following year, he taught systems thinking at the University of Berkeley. 

He later became a diversity and inclusion consultant for Microsoft before joining Think.iT as the head of product innovation. From 2018 to 2019, he worked as a strategy lead hardware builder Elkrem. He then became the interim executive director of the Global Fellow Network of the American Middle East Network for Dialogue at Stanford (AMENDS) from August to November 2019.

He also worked as a business manager for fintech startup Xpay, until 2020, before getting recruited as a business design consultant, by Kiron Open Higher Education. 

Melchior Koba

The developer of the innovative tool is passionate about digital technologies given their importance in helping address key issues.  He sees Nkwa as a way to improve the population’s financial discipline. 

Nkwa is a web and mobile - available for Android and iOS devices- financial solution developed and launched by Cameroonian tech entrepreneur Akwo Ashangndowah in 2020. It allows users to regularly save money directly from their mobile phones simply and more safely for their future projects.  

To start saving with Nkwa, users need to register and set specific targets, including duration or overall amount to save. Once the targets are set, the user can start saving via mobile money.

Like bank savings accounts, Nkwa offers a yearly 3% interest rate for amounts saved. In case of an emergency, users can withdraw the amounts they saved without waiting for their set targets or amounts. However, in that case, the startup applies a 5% penalty on the amount withdrawn. 

In 2021, Akwo Ashangndowah explained that Nkwa helps users have a clear view and control over their money and the things they want to achieve with the savings since they are not required to make big savings. 

Nkwa is an initiative of Maealth Tech Limited, an innovative company founded and led from 2015 to 2020 by Akwo Ashangndowah, who has also worked in the health technology. In October 2022, the startup was selected as one of 15 African fintech startups that will participate in the fifth edition of "CATAPULT: Inclusion Africa" organized by the Luxembourg House of Financial Technologies (LHoFT). The start-up will also participate in the Arch Summit taking place on October 26-27, 2022.  

Melchior Koba

Fintech is currently the most popular in the African startup ecosystem. It attracts a significant portion of VC investments, encouraging tech entrepreneurs to unleash their creativity. 

Fintra is a fintech solution launched, this year, by Senegalese start-up Orya Technologies. It helps employees face urgent needs by allowing them access to salary advances (up to 20% of salaries at a 6% interest rate) repayable within two weeks.  

The fintech solution -which aims to help employees serenely go by their usual duties while waiting for the next payday- was developed as an answer to the challenges faced by employees when they exhaust their earnings before payday.  Instead of wasting their time on paperwork all in a bid to collect bank loans repayable with a 12% interest, or turning to usurers, workers can simply apply for Fintra loans. 

According to Oumar Diallo, founder, and CEO of Orya Technologies, loan requests are processed automatically but the startup keeps check to avoid disrupting companies’ finances.  

Currently, the platform is in its beta phase. The phase, launched on September 15, 2022, is expected to be completed within two months. For the time being, the loans can be requested only by employees whose employers are enrolled in the program. For Oumar Diallo, the loan process is simple. Once participating companies set up accounts for each of their employees, those employees can request salary advances -via a mobile app- starting from the 15th of every month and receive the advances in their mobile wallets within one hour. 

With Fintra, Orya Technologies targets an about XOF350 billion (US$520 million) market of 350 thousand workers (per company figures) in Senegal. It also targets the West African region and its four million former workers. To reach its goals, it bets on its main investor, Compagnie Générale sénégalaise d’ingénierie et d’investissement.

Adoni Conrad Quenum

In Africa, money transfers are sometimes quite expensive, therefore impairing financial inclusion. To address the various reasons, a number of local startups are devising adapted solutions. 

Eversend is a fintech solution developed by an eponymous Ugandan startup founded in 2017. It allows users -both individuals and businesses- to make affordable “borderless” money transfers. 

“Eversend aims to be a solution to the “massive currency devaluation, high-interest rates, predatory pricing of up to 15 percent in hidden forex fees, inadequate payments infrastructure, and mediocre digital banking experiences,” says Stone Atwine, co-founder of the startup which went live in 2019. 

To successfully carry out its mission, the fintech solution has a mobile app (accessible on Android and iOS devices). The services accessible on the mobile app include money transfer, currency exchange, virtual debit cards, or stock trading. Its stock trading feature allows access to US stocks from the Eversend interface. It also allows businesses to make multi-currency payments. 

Currently, Eversend claims more than 350,000 happy clients. According to Stone Atwine, the volume of transfers it processed rose to US$230 million, up from US$5 million in 2020 and US$800,000  in 2019. 

“We hit our goal of sustainability last year, and we are entering our growth and expansion phase in 2022,” the co-founder said. 

The Ugandan startup is among the 60 beneficiaries of the second cohort of the Google for Startups Black Founders Fund, which entitles participants to a slice of US$4 million in financial support. The startup is already operational in Uganda, Kenya, Nigeria, Rwanda, and Ghana. It also plans to scale in French-speaking Africa, Europe, and the USA. 

Adoni Conrad Quenum

In Africa, the volume of funds attracted by fintech startups is growing rapidly. Those startups come up with alternative solutions to address some of the pressing challenges faced by businesses and individuals.

myStash is a fintech solution developed by an eponymous Nigerian startup, founded in 2021. It automatizes the savings process, allowing users to save a preset percentage of their earnings and expenses.

Through its web and mobile apps (the mobile app is available for Android and iPhone users), users can manage their finances and set the percentage of expenses and earnings to save. To do that, they must first register by providing personal information, then link their bank cards to their myStash accounts. 

The startup assures that the process is secure and it has no access to sensitive information. On its website, it claims that it has helped over 25,000 customers and hundreds of businesses “make better money moves by helping them save bit by bit in Naira or Dollars.”  

The startup also offers a 5-12% interest on the amounts saved. In addition, it enables users to receive part of their salaries in US dollars. Its services are free. This year, it is among the 43 African startups selected for the Social and Business Camp sponsored by the French Development Agency to help startups get themselves known to potential investors for their growth. 

Adoni Conrad Quenum

In Africa, access to some financial services is always challenging. However, with new technologies, entrepreneurs are stepping in to offer interesting alternatives.  

Chapa is a fintech solution developed by Ethiopian startup Chapa Financial Technologies S.C, founded in 2020.  It provides an API gateway enabling Ethiopian businesses and organizations to accept online payments and receive the payments directly in their local bank accounts within 24 hours. 

“Chapa’s mission is to empower Ethiopian entrepreneurs and businesses to thrive in the global economy. This launch formally establishes our entry into Ethiopia’s financial sector, and we look forward to expanding our fingerprint on the development of the digital ecosystem across East Africa in phase two, and the rest of Africa in phase three,” says Chapa Financial’s co-founder and CEO, Nael Hailemariam (photo, left). 

To access its services, businesses or organizations have to create accounts by providing the usual information line: name surname, business name, etc. Chapa collects 3.5% of every national transaction processed and 1% of the international ones. Its clients pay nothing for API integration or maintenance. 

Adoni Conrad Quenum

African tech entrepreneurs are developing solutions to ease daily business tasks. In Kenya, a fintech solution has been developed to help merchants operating in the informal sector with their bookkeeping tasks. 

Leja is a fintech solution developed by Kenyan startup Asilimia. It allows merchants operating in the informal sector to record their cash inflows and outflows. 

“I use it to write down my statements. Sometimes my supplier calls me to find out how much products he sold me two or three weeks ago. Thanks to Asilimia, it's easy, I go to the app and I find the transaction. [...]  Before, I had to write everything down in a notebook, but it's easy to lose it. While these readings are important, it allows me to see at the end of each month whether I am selling at a loss or making a profit,” indicated Judy Achieng, a Leja user. 

The solution has an Android app that allows merchants to record their transactions. Leja integrates M-Pesa, the popular mobile money wallet in Kenya.  Asilimia also plans to add other mobile money providers as well as banks to enable merchants to collect payments. 

To use the Leja app, merchants must create an account by filling some personal information. The process is crucial because merchants can access microloans through Leja as microfinance institutions and banks can monitor the evolution of users’ businesses.

In Kenya, Asilimia claims more than 50,000 people are using Leja. It also plans to roll out a USSD Code to enable access to its services for rural populations. 

Its services cost US$3.5 monthly. Since its creation in 2017, it has raised nearly US$2.5 million to support its development.  This year, it is one of the startups selected for the second cohort of the Google for Startups Black Founders Fund for Africa.

Adoni Conrad Quenum

The partnership between the two companies addresses several issues, including transparency problems. It also helps avoid the long bank queues.  

Orange Money and pan-African payment company Cellulant recently partnered to launch card-to-wallet transfers for eight banks in Botswana. 

According to a release published by Cellulant last Monday, the solution baptized Orange Money Card-To-Wallet will positively impact growth in the informal and financial services sectors. 

“The introduction of Card-To-Wallet aligns with our financial inclusion strategy that is centered around providing relevant and convenient solutions that address our customers’ everyday needs, as well as addressing our priorities around placing our customers first,” said Seabelo Pilane, CEO of Orange Money Botswana.  

For  Bathusi Beleme, Cellulant's Country Manager in Botswana, the partnership is in line with the payment company’s strategy to extend its services to “merchants in Botswana to help them digitize their payments.”

The service is already accessible to banked Orange Botswana subscribers. It will allow them to transfer funds from their bank cards to Orange Money wallets via Orange Botswana’s website. The process is powered by Tingg, Cellulant's payment platform. 

The sender will need only a registered Orange SIM card while the recipient will need an Orange Money account. Although most banks in Botswana have mobile apps, some do not yet offer this option to their customers. This solution, therefore, offers bank customers more options and allows them to transfer money easily and transparently, saving a lot of time.

 In its 2021 report, "The State of Instant Payments in Africa: Progress and Prospects," independent organization AfricaNenda says that, in Africa, 27.5 billion transactions were made by mobile payment accounts in 2020. The overall transaction value was US$495 billion. Year-on-year, the transaction number rose by 15% while the value increased by 23%.

Samira Njoya