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Issue 157
Nov 21 - Nov 28, 2022

Hi there,

This will be our last issue for the year and from all of us at Decode Fintech, we want to thank you for reading and being a part of our journey.

2022 has been an intriguing year for this newsletter and African fintech in general. We wrote our first long-form articles on MTN's PSB and NIP and held live virtual events to discuss the happenings in African fintech. We’re working on a couple of new articles and design improvements, and we’re excited to share updates on these in 2023.

Till then, we wish you all happy holidays. See you next year!

Tochukwu Ironsi
Market Intelligence Specialist, Paystack
GhanaGhana is set to reduce the e-levy rate to 1%. The Ghanaian government has announced a planned reduction of the e-levy charge applied on mobile money transactions, from 1.5% to 1%. Ghana’s Minister of Finance made this announcement at the 2023 budget presentation. Additionally, the daily levy waiver for mobile money transfers up to GHS 100 (~$13.30) will be removed. The Exchange

While the reduction in the mobile money levy is positive news, the very existence of the levy in the first place poses a threat to the adoption of cashless payment methods in the country. MTN MoMo, which is the biggest mobile money provider in Ghana, has reported slowed revenue growth and increased cash-out activities since the implementation of the e-levy. Surveys and interviews have also shown reductions in active agents and individual agent activity.

Additionally, the removal of the 100 GHS threshold on P2P transfers will most likely impact transaction activity, especially from retail customers who are most sensitive to fees and more likely to revert to cash to save costs.

As we’ve noted previously, direct taxes on money movements might have short-term gains but long-term negative effects. Hopefully, case studies like that of Tanzania - which reversed mobile money taxes after reduced volumes and consumer pushback - will prove a strong example to African countries.
GlobalLending is easy, repayment is hard. In this tweet, Sheel Mohnot (@pitdesi) sparks an interesting discussion about the importance of good underwriting and loan recovery processes when giving out loans. Twitter
AfricaThe earned wage access opportunity. Emeka Ajene of Afridigest writes about the growing market for on-demand salary payment solutions, and the African startups driving adoption in the space. Afridigest
Cote d'IvoireDjamo raises $14 million in new funding. Ivorian consumer fintech Djamo has raised $14 million in new funding. The round was led by Enza Capital, Oikocredit and Partech Africa, and comes after being accepted by Y Combinator, which also invested in this round of funding. Djamo will use the funding to expand into more Francophone countries and launch new lending and investment products. TechCrunch
NigeriaPivo closes $2 million seed funding. Pivo, a Nigeria-based fintech focused on SMEs, has completed a $2 million seed round. The round which included investments from Precursor Ventures, Vested World, Y Combinator, FoundersX, and Mercy Corp Ventures, will be used to drive product development and expansion into new markets like East Africa. TechCrunch
South AfricaRevio raises $1.1 million in seed funding. Revio, a payment and billing automation startup based in South Africa, has raised $1.1 million in seed funding. The round was led by SpeedInvest and will be used for product, team, and market expansion. Benjamin Dada
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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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Chipper Cash
Revenue Strategy Manager
UK- Remote, South Africa- Remote, Nigeria-Remote
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