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Issue 150
Oct 03 - Oct 09, 2022

Hi there,

I’m back from my leave which I spent thoroughly resting, eating, and catching up with friends and family. I also recently celebrated my third year at Paystack! Genuinely excited to be working with the smartest and kindest people and solving the most interesting problems.

I’m also glad to be back to writing the newsletter. There were some exciting developments in African fintech this past week, from new fundraises to telcos launching financial services. Let’s get into it!

Tochukwu Ironsi
Market Intelligence Specialist, Paystack
NigeriaGlobacom formally launches Moneymaster Payment Service Bank. Globacom, one of the major Nigerian telcos, has formally launched its PSB subsidiary, almost two years after final approval from the Central Bank of Nigeria (CBN). With the launch, Moneymaster PSB plans to offer financial services through mobile phones and a network of agents across the country. Nairametrics

In this article, we wrote about MTN’s MoMo PSB and how it could impact financial services in the country. The potential advantages and challenges noted in the article still apply to other providers like Globacom as well. We should therefore expect a combination of fierce competition but also a collective expansion of financial services users which in the end benefits the entire ecosystem. 
AfricaBackable African tech ventures. Luke Mostert (@lukemostert), a partner at An African Future, explores the economics behind VC investment returns on African companies in this Twitter thread

As Peter brilliantly adds here, there are other factors such as FX scarcity and interest rates that make the viable return factor on African VC investments higher. These are hurdles that become even more apparent as these macroeconomic factors continue to worsen. 
EthiopiaSafaricom obtains final approval for M-Pesa rollout in Ethiopia. According to Ethiopian Finance Minister, Ahmed Shide, Safaricom Ethiopia will receive a license to offer mobile money services in the country. This follows the official launch of the Ethiopian telco subsidiary after months of setting up and trials. Standard Media

We’ve extensively chronicled the Ethiopian government's attempts to liberalize the telecoms and payments industries in the last few years. As we noted, there’s an opportunity for players like Safaricom/M-Pesa to replicate success in financial services in a populous and financially underserved region like Ethiopia. However, there are also challenges in the form of political tensions and competition from state-linked Ethio Telecom's Telebirr. The mobile money platform has already gotten an almost one-year head start in providing mobile money services.
NamibiaBank of Namibia (BON) announces plans for regulation of virtual assets. Namibia's apex financial regulator has included virtual assets and virtual asset service providers in its regulatory sandbox. BON also disclosed plans to consider the amendment of existing laws that target virtual asset service providers. Bitcoin News
South AfricaTalk360 raises $3 million in additional seed funding. Talk360, a platform for international voice calls, has extended its seed funding with an additional $3 million. With a total seed funding of $7 million, the company will focus on building out a payment solution that integrates local payment methods across the continent. TechCrunch
KenyaTanda raises undisclosed funding in ongoing Pre-Series A round. Tanda, a Kenyan agency banking-as-a-service provider, has raised an undisclosed round of funding in its ongoing Pre-Series A round. The participating investors include South African VC HAVAIC and DFS Lab, and the funds will be used for product and geographic expansion. TechBuild
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Do you have an announcement, event, or job posting you'd like to share, or have you come across an interesting bit of African fintech news recently? Hit reply and let me know! I might be able to include it in next week's newsletter.
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