Flutterwave Secures License to Enhance Ugandan Payment Solutions
Flutterwave has obtained a Payment Systems Operator license from the Bank of Uganda. This development marks a significant step for Flutterwave as it expands its payment solutions across Africa. With this license, Ugandan businesses can now access a comprehensive suite of payment solutions, allowing them to collect payments in various methods preferred by their customers. Additionally, businesses in Uganda can efficiently conduct single and bulk payouts to suppliers, employees, and partners.
The PSO license also facilitates Ugandans in the diaspora to send money home with ease. Flutterwave's commitment to adhering to Ugandan regulations is underscored by this achievement, reflecting the Bank of Uganda's confidence in their ability to contribute to the country's digital payments ecosystem.
Uganda's digital economy is on the rise, driven by increased internet penetration and mobile technology advancements. With a population of over 47 million, the country presents a vibrant digital landscape. Mobile money adoption is particularly high, with over 54% of the population owning mobile money accounts. Uganda also ranks among Africa's top recipients of remittance inflows, receiving about $1.1 billion in 2021.
Flutterwave's entry into the Ugandan market is expected to boost the digital economy by providing seamless and secure payment solutions, enhancing business growth, and ensuring regulatory compliance. This move aligns with Uganda's National Financial Inclusion Strategy, aiming to bridge the financial inclusion gap and promote digital payments.
?? Ampersand Raises $2 Million.
?? Airtel Nigeria Boosts Connectivity.
?? Kenyan Ride-Hailing Fare Increases.
?? EU Launches Green Cities Program in Tanzania.
??? Maser’s $5 Billion Expansion Plan.
?? Nigeria’s Banks Benefit from MPR Increase.
?? MTN Group Leadership Appointments.
?? South Africa’s Power Grid Upgrades.
And So Much More...
Wasoko and MaxAB Finalize Merger to Form Leading B2B E-commerce Entity
Wasoko and MaxAB , two of Africa's largest B2B e-commerce platforms, have successfully completed their much-anticipated merger. This all-stock transaction marks a significant milestone in the African e-commerce landscape, creating a unified entity poised to dominate the continent's informal retail sector, valued at $600 billion. dThe merger involved integrating 16 subsidiaries across multiple countries, a process that took approximately eight months.
The newly formed entity will operate in five key markets: Kenya, Egypt, Morocco, Rwanda, and Tanzania, having scaled back from eight markets due to strategic restructuring.This consolidation reflects a broader trend in the B2B e-commerce sector, where companies are pivoting towards more sustainable operations amidst financial challenges.
Co-CEOs Daniel Yu of Wasoko and Belal EL-Megharbel of MaxAB will lead the merged company, which aims to enhance profitability by expanding its fintech offerings. These services, which include e-payments and credit financing, are expected to generate higher margins compared to traditional commerce operations. The merger also emphasizes a shift towards achieving net profit per order, moving away from previous growth strategies focused primarily on gross merchandise value.
The merged entity plans to serve over 450,000 merchants, leveraging its extensive network to provide comprehensive financial services alongside core commerce activities.
This focus on fintech is anticipated to significantly boost revenue, with projections of doubling income from these services by the end of 2024.
Ampersand Secures Additional Funding for Electric Transport Expansion
Ampersand Energy , a Rwanda-based electric transport energy company, has raised an additional $2 million in equity funding. This new investment comes from Africa-focused growth partnership fund AHL Venture Partners and American infrastructure fund manager Everstrong Capital, with further participation from existing investor Beyond Capital Ventures.
This funding round follows Ampersand's successful $19.5 million equity and debt financing secured last year, demonstrating continued investor confidence in the company's business model and technology. The fresh capital will be used to expand the roll-out of Ampersand's electric vehicle energy technology and infrastructure to the mass market across East Africa.
Founded in 2016 by John Whale, Ampersand offers cost-effective, low-carbon transport solutions primarily in Rwanda and Kenya. The company's electric motorcycles are 45% cheaper to operate than petrol-powered alternatives and produce at least 75% fewer carbon emissions. Ampersand's commercial motorcycle fleet, equipped with AI-powered smart battery technology, covers 3 million kilometers weekly across Kigali and Nairobi, facilitating over 75,000 battery swaps at multiple stations.
Ampersand's growth aligns with the increasing adoption of e-mobility in Africa. The company recently partnered with Chinese EV manufacturer BYD to enhance electric motorbike development and deployment in Africa, with plans to build around 40,000 electric motorcycles by the end of 2026.
As Ampersand expands its footprint, it faces competition in a growing market. Nigeria, Kenya, Egypt, and South Africa currently hold the major share of the African electric two-wheeler market, with other players like BasicGo, Roam, and Spiro also active in the sector. This latest funding round positions Ampersand to strengthen its market presence and contribute to the ongoing transformation of Africa's transportation landscape.
Airtel Nigeria Advances Connectivity with Eutelsat OneWeb Satellite Dish
Airtel Nigeria has successfully deployed the Eutelsat OneWeb satellite dish at its Lagos site, marking a significant step towards providing reliable, high-speed internet connectivity across Nigeria, especially in remote areas. This initiative aims to bridge the digital divide by offering seamless internet access with speeds up to 100 Mbps and low latency of less than 100 milliseconds.
The deployment is set to enhance connectivity for businesses and government operations throughout the country, enabling enterprises to extend their reach into underserved areas.
Airtel Nigeria is focusing on enterprise customers who require fast and reliable internet solutions. The technology is beneficial for sectors such as the navy, military, and maritime industries, with antennas that can be installed in vehicles like cars, vessels, and trains, thereby enabling land mobility.
The local team has been equipped with the necessary skills to manage and sustain this advanced technology, supporting ongoing projects and future innovations.
Kenya's Ride-Hailing Firms Raise Fares Amid Driver Protests
In a bid to address ongoing driver protests over fare structures, major ride-hailing companies in Kenya, including Bolt, Uber, and Little, have announced fare increases. Bolt has implemented a 10% increase in base fares across all ride categories, raising the base fare for its Economy category from Ksh 200 to Ksh 220.
This move follows Uber's recent 10% fare hike, which also adjusted the minimum fare for its 'Uber Chap Chap' service to Sh220. Little, another key player in the market, has raised its rates by 15% to enhance driver earnings and service quality.
These fare adjustments come amid rising operational costs and high fuel prices, which have put pressure on drivers' earnings. The ride-hailing industry in Kenya has faced significant disruptions due to driver protests, with drivers demanding better compensation and a reduction in the commissions taken by the platforms.The protests have led some drivers to set their own rates, causing public dissatisfaction and prompting the companies to revise their pricing strategies.
The fare hikes are aimed at ensuring fair compensation for drivers, improving service reliability, and maintaining competitiveness in a market characterized by both local and international players.
However, these increases may also lead to changes in consumer behavior, as riders might seek more affordable transportation options.
NALA Obtains an International Money Transfer Operator License from the Bank of Uganda
This allows license enables NALA to facilitate direct payments into local mobile wallets, streamlining the remittance process for Ugandans living abroad.
This development is particularly beneficial for the Ugandan diaspora, who have traditionally faced high fees and lengthy processing times when sending money home.
NALA aims to provide competitive exchange rates and low transaction fees, ensuring that more funds reach the intended recipients.
"Combined with our recent $40 million Series A funding, this represents a big step forward for us as NALA. Through our new API RAFIKI (https://www.instagram.com/rafiki_api/ ), sending and receiving money will now be more accessible and more efficient, which is crucial for many families in Uganda." stated Nala.
NALA's entry into the Ugandan market is expected to foster competition among money transfer services, leading to better rates and improved services for consumers.
EU Ambassador Launches Green and Smart Cities Programme in Pemba
The European Union Ambassador to Tanzania expressed gratitude to local partners and authorities for their warm reception during the official launch of the Green and Smart Cities SASA Programme in Pemba. Highlighting the EU's strong partnership with the Revolutionary Government of Zanzibar, the Ambassador emphasized the EU's commitment to supporting economic, social, and cultural development in the region.
The Ambassador noted that Pemba's natural beauty and resources present significant opportunities for economic growth, while also acknowledging the island's vulnerabilities, particularly in the context of climate change. The Green and Smart Cities SASA Programme aims to address these challenges by providing capacity building, infrastructure, and financial resources to improve services and economic opportunities, especially for youth and women.
Three major projects are being implemented under this programme, with a total investment of TZS 17.5 billion (EUR 6 million). These projects focus on enhancing urban eco-resilience, improving social urban facilities, and promoting inclusive and sustainable local economies. The initiatives aim to upgrade local markets, public spaces, and basic services such as water, sanitation, and waste management.
The Ambassador expressed optimism about the expected outcomes, including better school conditions, improved public spaces, and increased economic opportunities for women and youth. The EU plans to continue expanding its support in collaboration with European Member States and other partners.
Maser's $5 Billion Expansion Plan
Maser , an Africa-based electronics company founded by Prateek Suri, is embarking on an ambitious $5 billion expansion plan aimed at transforming the global consumer electronics landscape. With a current valuation exceeding $5 billion, Maser is set to expand its product line beyond affordable LED televisions to include smart home devices, mobile phones, and personal computing gadgets. The expansion will also see Maser entering new markets in Asia, Europe, and North America, where the brand's value proposition is expected to resonate strongly.
Suri's vision for Maser is to democratize technology, ensuring that every household, regardless of income level, has access to the latest and most innovative electronics. To achieve this, Maser plans to make strategic acquisitions and form partnerships with tech giants and local distributors. One such partnership is with a leading Chinese electronics firm to co-develop a new line of smart home devices. Additionally, Maser is in advanced talks to acquire a European electronics manufacturer to accelerate its product development cycle and tap into the European market.
Innovation is at the heart of Maser's expansion strategy. The company has invested heavily in research and development, opening a state-of-the-art innovation hub in Africa. This hub is tasked with developing the next generation of Maser products, focusing on AI integration, energy efficiency, and seamless connectivity. One of the flagship products expected to launch is a smart television that doubles as a home control center, integrating AI-driven voice assistance and IoT capabilities.
Nigeria's Banks Reap Benefits from MPR Increase
Nigeria's leading banks have benefited from the recent surge in the Monetary Policy Rate , generating a substantial ?1.62 trillion (about $1 billion) in interest income. This increase in the MPR has allowed banks to charge higher interest rates on loans, thereby boosting their revenue. The rise in interest income reflects the banks' strategic positioning to capitalize on the changing economic landscape, which has seen the MPR adjusted to curb inflation and stabilize the national currency.
The banks' ability to adapt to the MPR changes highlights their resilience and strategic foresight in navigating the economic challenges. This surge in interest income is expected to strengthen their financial positions, enabling them to offer more competitive products and services to their customers. Additionally, the increased revenue provides these banks with the opportunity to invest in technological advancements and expand their reach within and beyond Nigeria.
Overall, the MPR surge has proven advantageous for Nigeria's top banks, underscoring the importance of monetary policy in shaping the financial sector's performance and stability.
MTN Group Strengthens Leadership with New Appointments
MTN Group has announced the appointment of new non-executive directors to enhance its leadership in the fintech and digital services divisions. These strategic appointments are part of MTN's ongoing efforts to strengthen its governance and oversight capabilities, ensuring robust leadership as the company continues to expand its digital and financial services offerings across Africa.
Herman Bosman will serve as the independent chairman of MTN Group Fintech starting July 1, 2024. Bosman brings extensive experience from his previous roles as CEO of RMB Holdings and Rand Merchant Investment Holdings.
Joining him on the MTN Group Fintech Board on September 1, 2024, are Nicky Newton-King and Nosipho Molope.
Newton-King, the former CEO of the Johannesburg Stock Exchange, has a strong background in legal, business, capital markets, banking, and regulatory affairs.
Nosipho Molope, who has previously worked as CFO of the Financial Services Board in South Africa, will lead the Audit and Risk Committee of the Group Fintech Board.
Additionally, Jens Schulte-Bockum, previously the Chief Operating Officer of MTN Group, will take over as Chairman of Bayobab on September 1, 2024. Schulte-Bockum has been a non-executive director at Bayobab since 2021 and brings valuable experience in digital infrastructure across Europe and Africa.
MTN aims to enhance its competitive edge and deliver improved value to its customers and stakeholders.
South Africa Seeks $18 Billion for Power Grid Enhancement
South Africa is embarking on a significant initiative to raise 319 billion rand ($18 billion) to repair and upgrade its municipal power grids. This effort is part of a broader strategy to improve services across the country's municipalities and prepare them for increased renewable energy integration. The Just Energy Transition Municipal Forum, a new body established by the presidency, will oversee the fundraising and implementation of these upgrades.
The forum's objectives include training municipal staff and ensuring access to free electricity for the poor through a government grant. President Cyril Ramaphosa emphasized the need for modernizing the municipal grid system to accommodate future energy generation, which will require fundamentally different systems in terms of design and operation.
Currently, South Africa relies heavily on coal-fired power plants, with about 80% of its electricity generated by Eskom Holdings SOC Ltd. However, frequent power outages due to equipment breakdowns and overloaded grids are common, particularly in major municipalities like Johannesburg.
The financial challenges are compounded by municipalities' existing debt to Eskom and the new Electricity Regulation Amendment Act, which reduces their rights to distribute electricity. This situation poses an existential crisis for municipalities, as it threatens their income streams.
The presidency aims to raise the necessary funds by boosting private sector participation in power provision, although specific details on how this will be achieved remain unclear. Deputy Finance Minister David Masondo highlighted the importance of mobilizing and responsibly spending the funds to address these pressing issues.
Uganda Encouraged to Embrace AI for Financial Inclusion
At the 5th Business Trendsetters Forum in Kampala, Dr. Warren D. Carew, Director of INFITX, emphasized the transformative potential of artificial intelligence in enhancing financial inclusion in Uganda. Dr. Carew, a pioneer in digital financial services, highlighted AI's ability to increase access to financial services for marginalized communities, reduce costs, and improve customer experiences. He cited Mojaloop, an open-source platform facilitating interoperable payments, as a successful example of AI-driven innovation in Uganda.
Dr. Carew also discussed the role of AI-driven chatbots and virtual assistants in improving customer service and reducing operational costs for financial institutions. However, he stressed the importance of ethical considerations and safeguards to ensure responsible AI deployment.
Renowned economist Professor Waswa Balunywa urged the Ugandan government to support technology adoption to prevent the country from lagging in the global market. He pointed out significant barriers such as limited access to devices, data, and reliable electricity, advocating for government subsidies on internet costs and investments in technological infrastructure.
The forum, themed "AI, Your Mind, and Your Business," also featured discussions on the future of responsible AI in health and practical applications of AI in business. It celebrated trailblazers like Hajj. Ashraf Simwogerere and Daudi Migereko for their contributions to their fields.
SalesUnbox Empowers Nigerian SMEs with Comprehensive Digital Tools
SalesUnbox , is making waves in Nigeria by empowering small and medium-sized enterprises (SMEs) with a comprehensive set of digital tools. Recognizing the significant contribution of SMEs to Nigeria's GDP, SalesUnbox aims to tackle the digital challenges these businesses face by offering an all-in-one platform designed to streamline operations and enhance online presence.
Since its launch in April 2024, SalesUnbox has quickly gained traction, onboarding over 300 businesses.
The platform offers a suite of features including free website creation, online payment processing, invoice and order management, bookkeeping, and inventory control. These tools are designed to help SMEs run more efficiently, save time, and focus on expanding their customer base.
Mayowa Oladunjoye , Co-founder of SalesUnbox, emphasized the company's commitment to helping SMEs thrive in the digital economy.
The platform is accessible and affordable, with a payment model of 2,000 NGN per month after a three-month free trial.
SalesUnbox also prioritizes security, ensuring all customer information is transmitted using secure protocols and stored in a protected environment. This comprehensive approach makes SalesUnbox an attractive option for SMEs looking to enhance their digital capabilities and achieve sustainable growth.
China-Africa Economic Relations Set to Deepen
China and African business leaders are set to gather in Beijing next week for the eighth Conference of Chinese and African Entrepreneurs. This event aims to explore new opportunities for deepening industrial cooperation between China and Africa, facilitating African countries' integration into global industry and supply chains.
The conference will bring together representatives from 408 companies and institutions across 48 African countries. These participants span various sectors, including traditional industries like energy and mining, as well as emerging fields such as electronics and bio-pharmaceuticals.
The conference will serve as a platform for enhancing communication and collaboration between Chinese and African entrepreneurs, focusing on advancing economic and trade cooperation. The total trade value between China and Africa has seen significant growth, reaching 1.98 trillion yuan ($275.72 billion) in 2023 and continuing to rise in 2024. This momentum highlights the potential for further diversification and cooperation in areas such as green development and the digital economy.
China's direct investment in Africa has also been substantial, exceeding $40 billion by the end of 2023. This investment has enabled Chinese companies to expand their market presence in Africa, with notable successes such as Chaoyang Long March Tyre Co Ltd, which saw a significant increase in sales revenue in the African market. The upcoming Forum on China-Africa Cooperation Summit will further discuss strategies to enhance bilateral relations and build a high-level China-Africa community with a shared future.
Sukhiba Connect Secures $1.55 Million for Expansion
Kenyan social commerce startup SUKHIBA Connect has successfully raised $1.55 million in a seed extension round. This funding comes nearly a year after the company initially secured $1.5 million to expand beyond East Africa. The latest round was led by EQ2 Ventures, with contributions from Accion Venture Lab, Musha Ventures, Quona Capital, and existing investor CRE Ventures.
Founded in 2021 by Ananth Raj Gudipati and Abhinav Reddy, Sukhiba Connect operates a B2B conversational commerce and CRM platform built on WhatsApp. The platform is designed to help medium and large enterprises in emerging markets enhance sales and customer retention.
By leveraging WhatsApp, which is used by 97% of internet users in Kenya, Sukhiba Connect offers a comprehensive solution for managing orders, accepting payments, and providing customer service.
The new funding will enable Sukhiba Connect to accelerate its expansion across Africa and other emerging markets. The company aims to become a leading CRM and sales force automation tool, competing with other social commerce players like Kapu and MarketForce's Chpter. Sukhiba Connect has already seen significant growth,o perating in eight markets across Africa and India and serving over 35,000 SMEs.
Starlink Launches in Botswana After Regulatory Challenges
Starlink, the satellite internet service owned by SpaceX , has officially launched in Botswana, marking a significant step in enhancing the country's internet connectivity. This development comes three months after Starlink secured its operating license from the Botswana Communications Regulatory Authority, following a year of regulatory negotiations. Initially, Starlink's application faced rejection in February 2024 due to alleged missing information, leading to a temporary ban on the use, sale, and importation of Starlink kits in the country. However, a pivotal meeting between President Mokgweetsi Masisi and Starlink executives in May 2024 facilitated the approval of the license.
Starlink's entry into Botswana's internet service provider market, which is currently dominated by mobile network operators like BTC, Mascom, and Orange, as well as broadband providers such as Nashua and OPQ, is expected to offer more affordable and reliable internet services.
The hardware for Starlink will cost BWP 4,820 (approximately $363), with a monthly subscription fee of BWP 688 (around $52) and shipping costs of BWP 314 ($24). This pricing structure aims to reduce high data costs in Botswana, which have been a barrier to widespread internet access, particularly in remote areas.
The launch positions Botswana as the sixth Southern African country to adopt Starlink, following Zambia, Eswatini, Malawi, Mozambique, and Madagascar. The service is anticipated to significantly improve internet accessibility, especially in underserved regions, and could potentially influence pricing and service quality among existing providers.
Timbuktoo HealthTech Startup Accelerator Programme Calls for Applications
The timbuktoo Africa HealthTech Hub is inviting applications from visionary HealthTech entrepreneurs across Africa for its startup accelerator programme. This initiative aims to foster innovative startups that are developing groundbreaking solutions in areas such as AI-driven diagnostics, locally manufactured medical devices, and biotechnology tailored to African needs. With Africa's HealthTech market projected to reach $11 billion by 2025, the programme seeks to address critical healthcare gaps and build a robust HealthTech industry on the continent.
Eligible startups must have a technology-enabled solution at their core, contribute towards the United Nations Sustainable Development Goals, and demonstrate high scalability and a defensible market position. The programme encourages applications from startups focusing on disease prevention, vaccine production, medical robotics, genomics, and patient care, among other areas.
Selected startups will participate in a bootcamp in Kigali, Rwanda, followed by a five-month incubation and acceleration phase. They will receive mentorship, technical assistance, and equity-free funding of up to $100,000 USD.
The application process is open from August to October 2024, with the bootcamp scheduled for November to December 2024.
Learn more about the programme Here
Cybersecurity's Critical Role in Nigeria's AI-Driven Growth
Professor Dr. Obadare Peter Adewale Professor of Practice - Cybersecurity , founder and Chief Visionary Officer of Digital Encode Limited , has highlighted the essential role of cybersecurity in Nigeria's AI-driven digital growth. Speaking at the ICT Growth Conference organized by the Nigeria Information Technology Reporters’ Association in Lagos, Prof. Obadare emphasized the importance of understanding the threat landscape to protect against potential risks associated with AI advancements.
He noted that while AI offers significant benefits across various sectors such as finance, health, and agriculture, it also presents challenges related to bias, transparency, and data privacy. Prof. Obadare stressed the need for responsible AI usage and continued investment in cybersecurity to safeguard these technologies.
The professor also introduced the concept of AI Governance, Architecture, Implementation, Operations, and Monitoring (GAIOM) as key elements for effective cybersecurity strategies. He underscored the importance of education and investment in developing the necessary skills for AI implementation, advocating for a disruption in the educational sector to improve data quality and foster local research.
Prof. Obadare's insights point to the potential for Nigeria to become a leader in the knowledge economy by leveraging its talented workforce and focusing on innovative solutions that address local challenges.
Majority of Kenyans Borrow Digitally for Education, Says Tala Survey
A recent survey conducted by digital lender Tala reveals that education is the primary reason for digital borrowing among Kenyans in the first half of 2024. The H1 2024 customer barometer survey gathered responses from 2,637 participants across Tala's key markets, including Kenya, Mexico, the Philippines, and India, between May and June 2024.
In Kenya, borrowing habits have remained consistent with the latter half of 2023, with only 20% of respondents indicating an increase in borrowing during 2024. The average loan amount ranged between Ksh 10,000 ($77.34) and 20,000 ($154.68). The survey found that 51% of respondents turned to digital credit providers to bridge income gaps, while 31% initiated side hustles, and 20% started their own businesses. Additionally, 20% of the borrowed funds were used for medical needs, with 19% allocated for emergencies.
Despite a decrease in inflation to 4.3% year-on-year in July 2024, Kenyans continue to feel the impact of high living costs, particularly in food prices.
However, there is a reported improvement in financial well-being compared to 2023, with 56% of Kenyans cutting back on expenses to manage costs.
China Promotes Green Tech Exports to Africa Amid Western Restrictions
China is actively promoting its green technology exports to African nations as Western restrictions on technology exports loom. This strategic move was highlighted at the China-Africa Environmental Cooperation Centre in Nairobi, where Chinese officials and African leaders discussed opportunities for collaboration in green technology sectors. China's initiative comes as Western countries, including the United States, impose stricter controls on technology exports to China, particularly in areas related to green and digital technologies.
The Chinese government is positioning itself as a key partner for African countries seeking to advance their environmental goals and sustainable development. By offering green tech solutions, China aims to strengthen its economic ties with Africa, a continent that is increasingly focusing on renewable energy and sustainable practices to address climate change challenges.
This outreach aligns with China's broader Belt and Road Initiative, which seeks to enhance infrastructure and trade connectivity across Asia, Africa, and Europe. Through these efforts, China is not only looking to expand its market presence but also to bolster its geopolitical influence in Africa, particularly as Western nations reconsider their trade and technology policies.
African Smartphone Market Sees Modest Growth Amid Challenges
The African smartphone market has experienced modest growth, despite facing various economic challenges. In the first quarter of 2024, smartphone shipments increased by 24% year-on-year, reaching 18.2 million units.
This growth is attributed to new product launches and easing inflation in several markets, positioning Africa as the third fastest-growing smartphone region globally.
Transsion, Samsung, and Xiaomi continue to dominate the market, with Transsion leading due to its focus on entry-level models. The ultra-low-end segment, priced below $100, is expected to grow by 13% in 2024, driven by strong demand. However, challenges such as currency devaluation and increased import taxes persist, impacting market dynamics.
Despite these hurdles, the transition from feature phones to smartphones is gaining momentum, with 4G penetration expected to reach 75% by 2025. This shift is anticipated to drive long-term growth, supported by government and telecom operator initiatives.
Nigerian Fintech Grey Partners with dLocal for Expansion
This collaboration is designed to leverage Grey (YC W22) 's local expertise alongside dLocal 's robust payment solutions, facilitating seamless cross-border transactions. The partnership is particularly focused on providing tailored financial solutions that address the unique challenges and needs of these markets."
dLocal has eased payments integration, simplified regulatory challenges, and ensured a consistent experience across all markets, letting us focus on what we do best: delivering an inclusive and seamless global banking experience to our users.” said Idorenyin O.
The expansion targets include key regions such as Brazil, Argentina, and various parts of Africa and Asia, where there is significant potential for growth.
By combining resources, dLocal and Grey aim to streamline payment processes and enhance the overall transaction experience in these areas.
“To send and receive money is ordinarily never a matter of ‘what you see is what you get,’ with a multitude of cross-border fees eating into what is often a crucial lifeline,” said Agustín Botta, Head of EMEA, dLocal.
“Our partnership allows us to break down financial barriers across emerging markets and ensure quick and affordable access to funds, no matter where our users are." Agustín added.
Previously, dLocal has successfully partnered with other companies in South America, which has allowed it to streamline payment solutions and enter new markets effectively. These past collaborations have enhanced dLocal's transaction processes, setting a strong foundation for its current expansion efforts with Grey.
e& Egypt Partners with Ericsson for Network Upgrade
Egyptian telecom operator e& Egypt has partnered with 爱立信 to enhance its network capabilities by deploying Ericsson's advanced 20-port antennas. This collaboration marks a significant step towards the rollout of 5G technology in Egypt.
The Ericsson Antenna System is designed to optimize network performance by supporting multiple frequencies and technologies on a single site, which will benefit all operators in the country through site sharing.
This initiative is part of e& Egypt's commitment to align with Egypt Vision 2030, focusing on sustainable development and community building. The partnership is expected to provide faster speeds, greater reliability, and improved connectivity for users across Egypt. It will also expand 4G capabilities and lay the groundwork for a seamless transition to 5G, opening new opportunities for consumers and businesses alike.
Ericsson's involvement in Egypt's telecommunications sector is growing, with recent partnerships including deals with Vodafone Egypt and Orange Egypt to support digital transformation and enhance network infrastructure.
Proparco Invests in RubiX to Boost African SMEs
Proparco , a French development finance institution, has announced a significant investment in RubyX, a company focused on providing financial solutions to small and medium-sized enterprises (SMEs) in Africa. This investment aims to enhance RubiX's capacity to support the growth and development of African SMEs by offering tailored financial products and services.
RubiX is known for its innovative approach to addressing the financial challenges faced by SMEs, which are often underserved by traditional banking systems. By leveraging technology and data-driven insights, RubiX provides accessible and efficient financial solutions that enable SMEs to expand their operations and contribute to economic development in their respective regions.
Proparco's investment is expected to strengthen RubiX's ability to reach more businesses across Africa, fostering entrepreneurship and job creation. This partnership aligns with Proparco's mission to support sustainable economic growth and development in emerging markets by investing in key sectors that drive progress and innovation.
Africa's Notable Startup Exits and Their Impact
Africa's startup ecosystem has seen some significant exits, despite global challenges in the IPO market and regulatory scrutiny on large mergers and acquisitions.
Pundi X's Peko Wan on AI's Role in Africa's Growth
Peko Wan , co-CEO of Pundi X , recently discussed the impact of the African Union's new "Continental Artificial Intelligence Strategy" and how it aligns with Pundi X's mission to enhance financial inclusion through AI and blockchain technology. The strategy aims to accelerate AI adoption across Africa, fostering innovation and economic growth by integrating AI into public and private sectors.
Wan emphasized the importance of aligning regional AI strategies with the diverse regulatory environments of African countries to ensure smooth integration and compliance. She highlighted AI's potential to catalyze economic growth, despite challenges like capital investment requirements, by leveraging existing technologies and fostering innovation.
Pundi X is leveraging AI to assist unbanked populations, making digital wallets more accessible and providing real-time support. The company also uses blockchain to outsource AI tasks, promoting financial inclusion and economic growth. Wan noted that measuring the impact of AI-driven solutions involves collecting transaction data to analyze user adoption and effectiveness over time.
The synergy between AI and blockchain in facilitating seamless multi-chain transactions is seen as a way to empower African businesses to operate globally. Localization of solutions is crucial, requiring a deep understanding of local cultures and languages, partnerships with local entities, and compliance with regulations.
Wan believes AI can significantly contribute to achieving Sustainable Development Goals in Africa by improving healthcare, education, gender equality, and economic growth, while also addressing challenges like food security and climate change.
Starlink Expands in Africa Amid Regulatory Challenges
Starlink, SpaceX's satellite internet service, is expanding its presence across Africa but faces significant regulatory hurdles in South Africa. Initially set to launch in South Africa in 2023, Starlink's entry has been delayed indefinitely due to complex regulations, particularly the requirement for 30% black ownership equity under the country's Electronic Communication Act.
This has led to the termination of service for users who registered their kits outside South Africa but continued using them within the country, where Starlink remains unlicensed.
Despite these challenges in South Africa, Starlink has successfully launched in Botswana, becoming the third African country to join the Starlink network this month, following Sudan and the upcoming launch in Ghana. In Botswana, Starlink offers high-speed internet with download speeds between 50-250 Mbps, significantly improving connectivity compared to the current average of 8 Mbps.
In Kenya, Starlink's rapid expansion has led to increased competition with local telecommunications providers, prompting calls for stricter regulations. As Starlink continues its African expansion, it navigates a mix of regulatory challenges and market opportunities across the continent.
African Union's Commitment to AI Development in Africa
The African Union is dedicated to advancing artificial intelligence capabilities across Africa, viewing AI as a transformative force with the potential to drive significant economic, social, and geopolitical changes. The AU's Continental AI Strategy, endorsed during the 45th Ordinary Session in Accra, Ghana, emphasizes an Africa-centric approach to AI that focuses on ethical, responsible, and equitable practices.
This strategy aims to align AI development with the aspirations of Agenda 2063 and the Sustainable Development Goals, promoting innovation, creating high-value jobs, and preserving African culture. The AU is committed to supporting member states in developing harmonized national AI strategies, fostering talent, and encouraging partnerships and investments in AI.
The strategy includes a five-year Implementation Plan prioritizing key interventions such as building infrastructure, promoting research, and developing legal frameworks to protect against AI biases.
The AU sees AI as a critical tool for addressing Africa's challenges and accelerating development, with a focus on inclusive and collaborative policy development to ensure all sectors benefit from AI advancements.
AI in Healthcare: Opportunities and Challenges
Artificial intelligence (AI) is revolutionizing various industries, including healthcare, by enhancing disease diagnosis, discovering genetic links, assisting in surgeries, and automating administrative tasks. In Kenya, AI systems are being implemented in places like Kirinyaga County to improve diagnostic services, in collaboration with partners such as the National TB Programme and Amref Health Africa.
However, the integration of AI in healthcare comes with significant challenges. One major concern is the overreliance on AI, which could lead to overlooking human clinical judgment, potentially causing medical errors. AI systems can also be biased if trained on non-representative data, leading to unfair treatment of certain patient groups.
PayBox Launches Buddy: A New Financial Services App for Africa
Ghanaian fintech company PayBox has introduced Buddy, a new financial services app designed to provide young Africans with access to inclusive financial services. Buddy aims to empower users by offering a range of financial tools that leverage blockchain and artificial intelligence to overcome traditional financial barriers. The app is particularly focused on reducing transaction costs, streamlining cross-border payments, and enhancing investment returns.
Buddy features an AI component, currently in beta, which allows users to interact with their finances through a conversational interface, offering insights and advice for better financial decision-making.
Positioned as an alternative to services like PayPal and Monzo, Buddy is tailored to the African market and is available both as a mobile app and a decentralized application (dApp).
With Buddy, PayBox seeks to revolutionize the financial landscape in Africa, simplifying transactions and promoting financial literacy and empowerment among the continent's youth.
Ethiopian Capital Market Regulatory Sandbox Launched
In a move to bolster innovation within the financial sector, the Ethiopian Capital Markets Authority has introduced the country's first Regulatory Sandbox. This initiative is designed to foster the development and testing of new financial technologies and services in a controlled environment. The Sandbox allows FinTechs, startups, and other enterprises to experiment with innovative capital market solutions while under the supervision of ECMA. This controlled setting enables businesses to test their products without the immediate need to comply with the full range of existing regulations.
The Regulatory Sandbox provides a platform for participants to receive tailored regulatory guidance and the opportunity to accelerate their market entry. It is open to a wide array of participants, from licensed financial institutions to unlicensed firms with promising innovations, and even those working on activities that might be regulated in the future.
The initiative is expected to enhance the robustness and efficiency of Ethiopia's financial market, benefiting consumers and investors by ensuring new products are safe and effective before full-scale deployment. Moreover, it aims to attract both domestic and foreign investment, support job creation, and drive economic development. ECMA's Director General, Hanna Tehelku, emphasized the importance of this initiative as part of a broader strategy to support Ethiopia’s long-term capital market growth.
Naspers Calls for Proactive Measures to Boost South Africa's Digital Economy
Naspers, a leading global technology investor, is urging South African policymakers to take a more active role in fostering the country's digital economy. The company, which has its roots in South Africa, believes that a collaborative effort between the government and private sector is crucial to unlock the full potential of the digital landscape.
Phuthi Mahanyele-Dabengwa, CEO of Naspers South Africa, highlighted the need for policies that encourage innovation and entrepreneurship in the tech sector. She pointed out that while South Africa has made progress in digital adoption, there is still significant room for growth, particularly in areas such as e-commerce, fintech, and digital education.
Naspers is advocating for several key initiatives to drive digital growth. These include improving digital infrastructure, particularly in rural and underserved areas, to ensure broader internet access. The company also emphasizes the importance of digital skills training to prepare the workforce for the evolving job market.
Additionally, Naspers is calling for regulatory frameworks that support emerging technologies and business models. This includes streamlining processes for tech startups and creating incentives for investment in the digital sector. The company believes that such measures could help position South Africa as a leading tech hub in Africa and attract both local and international investment.
By taking these steps, Naspers argues that South Africa could create more jobs, boost economic growth, and improve service delivery across various sectors. The company's appeal comes at a time when many countries are focusing on digital transformation as a key driver of economic recovery and long-term development.
Global Tech Outlook
Klarna is transforming its business with AI, showing significant progress in H1 2024 with a shift from losses to profitability. Revenue jumped 27% year-over-year, driven by improved monetization and AI-driven efficiencies.
Klarna’s AI assistant is now handling tasks equivalent to 700 employees, slashing the workforce from 5,000 to 3,800 and potentially down to 2,000 in the future. This dramatic shift is setting the stage for a potential IPO, with Klarna’s productivity and cost management outpacing many competitors.
Apple is reportedly planning to invest in OpenAI, the creator of ChatGPT, as part of a new fundraising round that could value OpenAI at over $100 billion.
This strategic investment would deepen ties between Apple and leading AI technologies, aligning with Apple’s plan to integrate ChatGPT into iOS 18, iPadOS 18, and macOS Sequoia.
PayPal and Fiserv have strengthened their decade-long partnership to enhance digital payment experiences. Key developments include simplified integration for Fiserv’s merchants to access PayPal and Venmo services, and the roll-out of Fastlane, PayPal’s one-click checkout solution that accelerates guest checkout flows.
This expanded collaboration aims to boost PayPal’s reach, offering merchants and consumers faster, more seamless payment options and reinforcing PayPal's ecosystem expansion strategy.
This Week in the Economies
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