In Africa, the low bancarisation rate, combined with the digitalization fever, offers a fertile ground for the development of fintech startups. 

Yoco is a South African fintech startup co-founded in 2013 by Katlego Maphai, Carl Wazen, Bradley Wattrus, and Lungisa Matshoba.  Through its platform, it allows entrepreneurs to accept card payments. In 2017, the startup launched an eponymous mobile app to serve more clients in the local market. 

The platform allows Yoco clients to collect card payments but, it also gives SMEs the possibility to get cash advances to develop their businesses, through Yoco Capital. With Yoco Capital, the South African startup aims to help SMEs that are unable to get loans from traditional institutions develop their operations with no worries about deadlines, interest rates, or even defaulting risks and their consequences.  

“We understand that accessing capital is one of the hardest challenges faced by small business owners. It's also one of the biggest reasons why small businesses remain small. We continue to offer solutions that leverage smart technology to help small businesses grow,” indicates Yoco co-founder Katlego Maphai. 

Yoco Capital is accessible to eligible Yoco merchants only. Within one day, applicants can receive the loans requested. The amounts granted can range from ZAR2,500 (US$160) to ZAR75,000 (US$4,800). 

Since its creation, the startup has completed several funding rounds. The latest is a Series C funding round completed in July 2021. During that round led by Dragoneer Investment Group, Yoco raised US$83 million “to accelerate product development.”

In 2021, the startup claimed it had 150,000 businesses in its portfolio with 500 new merchants adding to that portfolio daily. Currently, the startup plans to expand into new African markets. Indeed, 90% of SMEs operating on the continent are small businesses. Yoco’s offers will be highly valuable to African entrepreneurs. 

In 2017, Yoco was selected by CB Insights as one of the top 250 financial technology companies in the world.

Adoni Conrad Quenum

In the past few years, global leaders in on-demand transportation have heavily invested in African markets. Bolt, Yango, and Uber are notable names but, their solutions are sometimes not efficient. Local startups like Moja Ride are building their solutions to address those minor inefficiencies.   

Moja Ride is a Mobility-as-a-Service startup launched, in 2017, to make life easier for Ivorians. In March 2021, the startup created by Jean Claude Gouesse (photo, center), raised an undisclosed amount from Mobility 54, a venture capital fund set up by Japanese firm Toyota. 

The eponymous platform developed by the startup is an alternative to ride-hailing giants operating in Abidjan. With its platform, Moja Ride wants to offer an urban mobility solution to its users but it also wants to help them build a network by offering simple, affordable, and efficient alternative mobility solutions. 

The app allows ride-sharing between friends, neighbors, and co-workers to help save on daily travel expenses. It also allows transport operators to easily manage their fleets and routes. 

Each of the rides planned through Moja Ride is insured for up to XOF2 million for individual accidents and up to XOF300,000 for healthcare coverage.  

To facilitate payments, Moja Ride developed an internal solution based on the payment network Visa and fare collection O-City’s systems.  To access its services, users just have to download the mobile app from AppStore or PlayStore and fill in a set of information. Its revenues come from commissions generated on rides booked and payments collected by drivers.  

 In October 2020, Moja Ride was selected to participate in the Africa Tech Summit Connects, a competition offering startups the possibility to raise pre-seed, seed, or Series A funding. 

In 2021, the startup was claiming over 1,200 taxis and buses available for booking through its platform in Abidjan. 

Adoni Conrad Quenum

Credit card network VISA inaugurated its first African innovation hub in Kenya yesterday April 6. Based in Nairobi, the facility will serve as a framework for accelerating payment technology research in the sub-Saharan African region. It will be a mentorship hub for developers creating solutions that can revolutionize payments and e-commerce. 

The studio will also help Visa clients and partners operating in Africa expand their services and access technological tools that will help them overcome some of the key challenges in their business environment. 

VISA’s Nairobi innovation hub will now join the global network of innovation hubs operated by the credit card network since 2016. Currently, that global network is made up of hubs in Dubai, Singapore, San Fransico, and now Nairobi. 

“Sub-Saharan Africa is a fast-growing region with a tech-savvy population. As we continue to grow digital payments adoption in the region, our aspiration is to deepen our collaboration with clients and partners in developing solutions that are designed around the unique needs of Africa,” says Aida Diarra (photo), Senior Vice President & Head of Visa in Sub-Saharan Africa.  

In the past five years, the African fintech segment has recorded strong growth. Startups operating in that segment attracted the highest volume of investments, reflecting local populations’ interest in practical, customized, and affordable financial solutions. 

For VISA, investing in that segment is a strategic move to consolidate its presence and market share. According to the credit card network, the Nairobi innovation hub will explore ideas that can support the growth of emerging payment systems such as contactless payment and cash on delivery. The hub will also explore the development of smart payment solutions that leverage blockchain, the Internet of Things, virtual reality, and biometrics.

Muriel Edjo

Although the fastest growing in the World, the African startup ecosystem is still faced with fundraising difficulties, the early-stage segment notably. For Nigerian entrepreneurs Benedict Afolami and Ose Eromosele, Conectivest may be the solution to that problem.  

The finance industry has no secrets for Benedict Afolami (photo, left) and Ose Eromosele (photo, right). With over 15 years of combined professional experience in technology and finance, they have had time to identify the issues faced by fundraisers in Africa and the gaps between investors' and entrepreneurs’ expectations. 

They created Conectivest to tackle the various problems they identified during their professional career. Officially launched in June 2021, the digital platform facilitates investments by networking investors and entrepreneurs. According to the founders, successful fundraising always starts with perfect alchemy between investors and the fundraiser.  

“It’s an investment networking space that facilitates founder to founder connection; investor to investor connection; hub to founder connection and investor to founder connections,” explains Benedict Afolami, Co-founder and CEO of Conectivest.

Conectivest offers a quick way for founders, hubs, incubators, and investors to connect and exchange ideas. It helps startups fine-tune their profiles. It also allows investors to manage their deals and investments.  Through weekly demo days, Connectivest allows entrepreneurs wh are ready to raise money to meet with investors.

In less than a year, the founders claim to have onboarded more than 350 active Africa-focused investors from three major investment groups, including LoftyInc Capital Management, Midlothian Angel Network, and South-South-East Angel Network. Through Conectivest, the said investors have directly or indirectly completed more than 50 deals totaling US$2.2 million, they told TechBuild Africa. 

Aïsha Moyouzame

Less than two months after raising $10 million, mobility fintech Moove Africa secured additional resources to fund its expansion on and off the continent.

Moove Africa, a Nigerian-created  fintech company that makes it easier for African entrepreneurs to access financing for new vehicle purchases, announced on Monday, March 14, that it raised $105 million in equity and debt in a Series A2 financing. The deal brings to $174.5 million the total funds raised to date by the company founded in 2019 by Nigerian-born Britons Ladi Delano and Jide Odunsi.

“Less than two years ago, we discovered this white space of mobility fintech and launched Moove. After surpassing 3 million trips in Moove-funded vehicles across Africa, rolling out our service in six new African cities, and connecting mobility entrepreneurs to the ride-sharing, e-logistics, and delivery markets, we are now leading this growing Fintech sector... We are thrilled to have the support of investors around the world who will help us take our model to the world,” commented Ladi Delano.

This new fundraising comes less than two months after Moove Africa obtained a $10 million financing facility from UAE-based investment firm NBK Capital Partners. The money, raised on 1 February 2022, was aimed at supporting the West African expansion of Uber's exclusive partner for vehicle financing and provisioning in sub-Saharan Africa.

The mobility fintech plans, over the next six months, to continue its expansion into seven new markets in Asia, Europe, the Middle East and North Africa (MENA) region. The company, which is present in six African cities, also intends to build new partnerships while expanding its range of vehicles.

In Africa, less than 5% of all new vehicles are purchased with a loan compared to 92% in Europe, Moove Africa complains. On the continent, the vehicle ownership rate is below 44 cars per 1,000 people, compared to 640 per 1,000 in Europe and 816 in the United States, the mobility fintech continues. According to the company, Africa’s low ownership is due to a low penetration rate of borrowing, which it believes has limited the ability of more than 1 billion Africans on the continent to purchase new vehicles. According to Ladi Delano, millions of entrepreneurs in emerging markets have limited or no access to vehicle financing, even though the market opportunity is vast. The two-wheeler rental market is estimated at $80 billion in sub-Saharan Africa, according to data provided by Moove. Yet the continent recorded fewer than 900,000 new vehicle sales in 2019, compared to 17 million in the United States.

Chamberline MOKO

Almost seven years after launching, the online payment company has entered a fourth African market. Its ambition remains to make digital payments accessible to a larger number of people.

Paydunya, the Senegal-based online payment start-up, has recently started operations in Togo. 

Already present in Senegal, Côte d'Ivoire, Benin, and Burkina Faso, Paydunya is coming to Togo with the ambition to “make digital payments accessible, regardless of the payment method used, regardless of the area and region, and regardless of the sector of activity, whether public or private.”

The payment aggregator maintains that it wants to provide "real added value" with secure solutions for receiving and making payments via mobile money (T-money, Flooz) and bank cards. 

“We want to facilitate access to digital payments to all businesses regardless of their size or sector of activity and thus participate and contribute to the vast financial inclusion project in Togo,” Aziz Yérima, CEO of PayDunya told We are Tech. “Our launch in Togo is a response to the needs of our customers," intended to "provide them with accessible payment solutions,” he added. 

A growing fintech ecosystem

In Togo, Paydunya joins a growing fintech ecosystem that has welcomed in recent years, young "promising" startups such as CinetPay, Semoa, and Gozem, the super App specialized in e-transport and e-logistics.

Paydunya, which reached 65,000 transactions per day in 2021, intends to take advantage of this Togolese environment that fosters digitalization and financial inclusion. Data from the BCEAO shows that over 72% of the Togolese population holds at least one account in a financial institution or a mobile money account. 

Given the greater use of Mobile Money in Togo, since it was adopted in 2016, more Fintechs have been eyeing Togo. Wave, a mobile money solution - which Paydunya integrates into its range of solutions - is among them; it revealed plans to come to Lomé. Due to its competitive fee structure, the U.S. unicorn, whose operational base is in Dakar, will surely shake the Togolese mobile money transfer ecosystem (which is presently shared between Moov and Togocel), and aggregators like Paydunya could gain the most from this digitalization-driven disruption.

An idea born on campus 

Paydunya’s founders, Aziz Yerima, Youma Fall, Honoré Hounwanou, and Christian Palouki, came up with the idea in 2014 while studying at the École Supérieure Multinationale des Télécommunications (ESMT), in Benin, Ivory Coast, Senegal, and Togo. They launched the fintech the following year. 

In 2021, nearly 7 years later, the fintech claims to have processed more than 15 million transactions valued at CFA 110 billion. Its customer base is estimated at more than 1,200 B2B clients.

Fiacre E. Kakpo

Over the past five years, mobile money has become increasingly valuable in Africa. Today, it has become the largest payment tool in Africa. Its continent-wide interoperability has the potential to further unlock the potential of intra-African trade.

Digital payment gateway fintech MFS Africa announced on 16 February 2022 that it has joined the Pan African Payment and Settlement System (PAPSS). The PAPSS was launched in January 2021 by the African Continental Free Trade Area (AfCFTA). 

According to the fintech, the partnership will enable its 320 million African mobile money customers to receive and make merchant payments in the 54 member-States of the AfCFTA.

Joining the PAPSS, according to Dare Okoudjou (pictured), founder and CEO of MFS Africa, translates a desire to further enrich this pan-African solution that "provides small and medium-sized enterprises (SMEs), entrepreneurs and merchants with easier access to formal payment services that will help them grow their businesses.”

In its "State of the Industry Report on Mobile Money 2021," the Global System Operators' Association (GSMA) said Africa was once again the champion in mobile payments with $490 billion exchanged on the continent compared to $767 billion globally. The number of mobile money accounts was 548 million on the continent compared to 1.2 billion globally.

“Africa is the global leader in mobile money services...This demonstrates how mobile money services play a key role in the continent's economic growth and facilitate financial inclusion,” said Mike Ogbalu III, CEO of PAPSS,

Adoni Conrad Quenum

Au cours des cinq dernières années, le Mobile Money a gagné en valeur en Afrique. Aujourd’hui, il y est devenu le plus grand outil de paiement. Son interopérabilité à l’échelle du continent a la capacité de libérer davantage le potentiel du commerce intra-africain.

La fintech MFS Africa, passerelle de paiement numérique, a annoncé le mercredi 16 février son intégration au Système de paiement et de règlement panafricain (PAPSS) de la Zone de libre-échange continentale africaine (Zlecaf) lancée en janvier 2021. Ce partenariat permettra aux 320 millions de clients Mobile Money que compte MSF Africa dans 35 pays du continent d’effectuer ou de recevoir plus aisément des paiements marchands dans les marchés des 54 Etats qui ont rejoint la zone de libre-échange continentale.

Dare Okoudjou (photo), fondateur et président-directeur général de MFS Africa, justifie la décision de rejoindre le PAPSS par la volonté d’enrichir davantage cette solution panafricaine qui « permet aux petites et moyennes entreprises (PME), aux entrepreneurs et aux commerçants d’accéder plus facilement aux services de paiement formels qui les aideront à développer leurs activités ».

Today @NaghaviNika, our Executive Director – MNOs, spoke with @cnbcafrica about MFS Africa joining #PAPSS and how digital payments are empowering small businesses across #Africa - making borders matter less. Watch her interview here: https://t.co/lC1tugmOQx

— MFS Africa (@MFS_Africa) February 18, 2022

Dans son rapport « State of the Industry Report on Mobile Money 2021 », l’Association mondiale des opérateurs de téléphonie (GSMA) indique que l’Afrique a une fois de plus occupé la place de  championne dans le paiement mobile avec 490 milliards $ échangés sur le continent contre 767 milliards $ dans le monde. Le nombre de comptes Mobile Money était de 548 millions sur le continent contre 1,2 milliard dans le monde.

Selon Mike Ogbalu III, le directeur général du PAPSS, « l’Afrique est le leader mondial des services d’argent mobile […] Cela démontre à quel point les services d’argent mobile jouent un rôle clé dans la croissance économique du continent et facilitent l’inclusion financière ». 

Adoni Conrad Quenum

Lire aussi : Avec PAPSS développé par Afreximbank, les Africains peuvent désormais payer en monnaie locale partout sur le continent ...

The fintech Maviance raises a new round of funding, less than a year after the last one, to pursue its expansion strategy. According to a Feb. 18 legal announcement, Finafrik Ltd, a private company based in London and specialized in the development of commercial software, has become a shareholder of Cameroonian fintech Maviance PLC. The latter is the owner of the digital payment platform Smobilpay.

Through this operation, the capital of Mavaince increases to CFA1.15 billion, up a little more than CFA140 million. This makes Finafrik a holder of 12.2% of the company's capital.

In May 2021, Maviance PLC had successfully closed a $3 million (about CFA1.6 billion) fundraising round with MFS Africa, a pan-African fintech operating the largest digital payments hub on the African continent. MFS Africa has become a "strategic investor" in Maviance, enabling it to finance its expansion across Cameroon and enter new Cemac markets.

Maviance claims it serves over 500,000 customers per month and connects key service providers, payment providers, financial institutions, and mobile money operators to its digital financial services platform.

Since January 2021, Nkwenti Leslie Azong-Wara has been serving as CEO for a three-year term. The engineer, who has a background in Siemens A.G., replaces Njinyam Setven Ngwa.

S.A.

Earnipay, which launched as a pilot last September, has already attracted the interest of investors. The fintech aims to reach nearly 200,000 employees with its flexible, on-demand payroll service by the end of 2022.

Earnipay, the Nigerian fintech that offers employees flexible and regular access to their salaries, has secured $4 million in pre-seed funding to accelerate its business in the country.

“Earnipay has quickly established itself with a product built specifically for the payroll behaviors of this region, and early employer uptake is very strong. Nonso (the MD, ed) has built one of the strongest teams that we’ve met on the entire continent, and we’re thrilled for the opportunity to partner with them,” said Brendan Dickinson, general partner at Canaan, the VC firm that led the deal.

After he faced employee departures due to the monthly payroll system instituted at his first-ever plastic waste recycling company, which launched in 2019 in Ghana, Nonso Onwuzulike decided to revamp that payment method by offering a more regular and flexible employee payroll system as part of a new business venture in Nigeria.

Earnipay, which was only launched on a trial basis last September, claims to have served employees of about 20 companies in Nigeria to date. Its app has been used more than 1,000 times. Confident in its growth prospects, Earnipay aims to offer its flexible, on-demand salary access service to at least 200,000 employees by the end of this year.

In Nigeria, salaries for employees in the formal sector are paid monthly, while those in the informal sector are paid daily, according to several local media. Short of cash between paychecks, employees have no other option than to borrow or to ask for an advance on their salary with sometimes high-interest rates. Earnipay's solution is therefore a relief for these employees.

Chamberline Moko