|2022 in African fintech: Exploring the biggest African fintech stories that shaped the year|
We’re delighted to share our first long-form piece of the year — a review of 2022 in African fintech.
In this article, we explore the most important stories, trends, and themes in 2022 and what they might mean for the ecosystem in 2023.
|Egypt||Axis launches in Egypt. Axis, an Egyptian fintech, has launched AxisPay, a digital payments platform for businesses and their employees. This comes after obtaining a license from the Central Bank of Egypt and raising an $8.25 million seed round 18 months ago. TechCrunch|
|Ethiopia||UNCDF launches a new program for agency banking networks in Ethiopia. The United Nations Capital Development Fund (UNCDF) has commenced its agency banking improvement initiative in Ethiopia. With this new project, UNCDF aims to bolster agency banking networks through boot camps, new technology products, and a measurement dashboard. Afrikan Heroes|
|Kenya||Shara acquires a majority stake in Maisha Microfinance. Shara, an SME digital lender based in Nigeria and Kenya, has acquired 55.8% of Maisha Microfinance in Kenya. This acquisition enables Shara to provide a range of credit and banking solutions to its customers, ensuring full compliance with regulatory requirements. Kenyan Wallstreet|
|EDITOR'S NOTE||In Issue 154, we wrote about the underlying strategy and limitations behind acquiring an MFB. Building a credit product requires both regulatory cover and access to cheap capital. MFBs offer both and more to fintechs. However, there are other limitations for fintechs to consider, like administrative and regulatory overhead, and increased competition.|
|Kenya||M-Pesa obtains a license in Ethiopia. Safaricom has received a payment instrument issuer license from the National Bank of Ethiopia (NBE) for M-Pesa, their mobile money product. M-Pesa, which has found great success in Kenya, can now officially expand its offerings to Ethiopia. This follows initial approvals from the NBE and a $150 million license fee. Benjamin Dada|
|Egypt||Exits MENA obtains securities license from FRA. Exits MENA, an Egyptian investment platform, has obtained a securities promotion and underwriting license from the Egyptian Financial Regulatory Authority (FRA). This license enables Exits MENA to play a pivotal role in facilitating companies' access to the capital markets through listings and initial public offerings (IPOs), providing them with compliant and regulated services. Disrupt Africa|
|Africa||Jia raises $3.4 million in seed funding. Jia, a blockchain-based MSME lender, has raised $3.4 million in seed funding. The round was led by TCG Crypto and will be used to deepen penetration in existing markets and drive expansion into new ones. WeeTracker|
|Egypt||Balad raises undisclosed pre-seed funding. Egypt’s Balad, which offers cross-border payment solutions, has completed its pre-seed funding. The round was led by Acasia Angels and will be used for product development, hiring, and obtaining necessary licenses. Disrupt Africa|
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