Home Blog Page 3

Partech Ventures’s new $70m Africa VC fund will invest in Fintech

By
Team Africa
-
2

After several months, the french VC Partech Ventures officially announces the launch of its Africa fund, that has a total of US$70 million to be invested in pan-African tech start-ups.

The VC fund has historically invested in tech companies, including Fintech, in two main markets which are the US and Europe and is now accelerating in Africa with this new fund, making it one of the biggest Tech fund in the continent.

Denominated Partech Africa, the fund will be cross-industry with targeted sectors including fintech and mobile consumer services, among others.

Thanks to our global network of corporate partners, our dedicated business development team will expose African startups to European and US markets, enable commercial contracts and long-term strategic partnerships,” said Tidjane Dème, general partner for Partech Africa.

Prestigious financial institutions invested in the fund as part of their strategy plan to support technologies in emerging markets, such as the World Bank Group through the International Finance Corporation (IFC) and the European Investment Bank (EIB), among others.

Investment tickets will range from EUR500,000 to EUR5 million and will be dedicated to scale-ups targeting high-growth markets.

“Africa has lots of people with strong tech skills and innovative ideas that could improve lives. But they lack the necessary funding. We think the Partech Africa fund will make an important contribution to closing this funding gap and driving entrepreneurship and growth,” said Philippe Le Houérou, chief executive officer (CEO) of IFC.

IMPROTANT: If you are an African Fintech company looking to raise funds, please contact us at hello@techfoliance.com to know further about the fund or to be connected with Partech Africa.

 

The article was first published in Disrupt Africa

[Facts&Figures] Blockchain for development by GSMA

By
Team Africa
-
0

Techfoliance is extracting key data and facts from industry reports on the rise of Fintech in Africa so that you can focus on what matters the most for you.

In this report published on January 2018, the GSMA provides short case studies that highlight how four blockchain platforms are currently being used to improve people’s access to self-sovereign identities, bring new levels of transparency to the distribution of international aid, and improve the efficiency of humanitarian cash transfers.

[divider]Key Figures[/divider]

By the middle of 2017, two thirds of the world’s population had a mobile subscription – a total of five billion unique subscribers. By 2020, a further 620 million new mobile subscribers will be added, taking the global penetration rate to 75%.

With developed markets approaching saturation, developing countries will account for nine out of ten new subscribers between now and 2020.

In more than 140 countries, MNOs are now subject to mandatory SIM registration obligations which require customers to present Government recognised identity credentials before a SIM card can be activated.

The platform Gravity, a ‘next-generation identity solution’, has not been fully deployed to date, but it has recently run a first pilot in Kenya registering 1,000 users over three days.

An estimated 2.3 billion people depend on agriculture for their livelihoods, and according to the United Nations Food and Agriculture Organization, four-fifths of the developing world’s food is a product of small-sized farms.

An ever-increasing number of people were forced to leave or flee their homes due to conflict and persecution in 2016, with the global displaced population reaching nearly 64 million by mid-year.

[divider]Key FACTS[/divider]

Blockchain is a secure platform that lets people and organisations share information with each other with an unprecedented degree of trust and transparency.

 

In 2009, an author (or authors) using the pseudonym Satoshi Nakamoto published a paper titled, ‘Bitcoin: A Peer-to-Peer Electronic Cash System’, which outlined a vision for a new kind of digital currency.

Blockchains are distributed ledgers, or shared databases.

 

South African diamond specialist De Beers is investigating how to use blockchain to help differentiate legitimately sourced diamonds from those that have been sourced in conflict zones.

Net growth in mobile subscribers, Q2 2017 – 2020

[divider]Key USE CASES[/divider]

In early 2017, Disberse implemented their first pilot by distributing and tracking funds from the UK to Swaziland in support of a girls’ education project. The funds were distributed from a UK NGO to a Swazi NGO, and then on to four local schools, supporting vulnerable girls left as orphans by the HIV/AIDS epidemic.

In June 2015, Orange Silicon Valley launched ChainForce, an initiative that brings together innovative blockchain start-ups and forwardthinking corporations for short-term, collaborative pilot projects.

BanQu’s mission is to connect the world’s poorest people to the global economy by providing them with a secure, portable digital identity.

Read the full report here

African Fintech Mapping Week #6: Jamii, MoneyFellows, Fiftyfor and PayPass

By
Team Africa
-
0

Every week, Techfoliance highlights four promising Fintech start-ups across Africa in various verticals: Digital Banking, Payments, InsurTech or Investment. In this weekly FinTech mapping we have Jamii, MoneyFellows, Fiftyfor and PayPass.

[divider]Fintech Mapping[/divider]

Jamii

Jamii is a Tanzania-based Insurtech that has developed a platform to increase access of health care to the informal sector in Africa, making products and services cheap and accessible to people through digitization. The start-up raised US$750,000 seed funding for expanding across the country and into East and Central Africa.

Discover here: http://www.jamiiafrica.com/

MoneyFellows

MoneyFellows is an Egypt-based FinTech that that has developed a web and mobile based platform that enables individuals to access interest free credit and better saving achievements through their social network.

Discover here: http://www.moneyfellows.com

Fiftyfor

Fiftyfor, formerly Labadens, is a Nigeria-based Fintech that has developed an online platform offering financial, operational and sustainability rating of African companies. The company specializes in African small and medium enterprise, help investors identify potential suppliers & customers, and investment opportunities in Africa.

Discover here: https://www.fiftyfor.com/

PayPass

PayPass is a Nigeria-based online ticketing startup that has designed a portal called Tiqeta where users can buy and sell event tickets in a simple way with tiqeta wallet, bank transfer or debit/credit cards. Payments are processed via third-party payment processor, Paystack.

Discover here: https://tiqeta.com/

 

Key Take Aways from Finnovation 2017 in Ethiopia

By
Colin Don Schouw
-
0

Few weeks ago, Finnovation was kicking off in Ethiopia and we are glad to share with you thoughts and take aways on fintech trends gathered from international and local experts.

In case you could not attend, we are happy to highlight key take aways on a wide range of topics such as financial inclusion and how FinTech can make a positive and profitable difference in Africa.

More than 200 international experts agreed to say that FinTech is accelerating the digital transformation of banking in Africa but highlighted that collaboration is key to look forward.

Global Fintech: Africa’s Context

The event explored how the major banks and financial institutions on the continent are addressing the digital transformation of financial services; and how their own digital innovations are being shaped and accelerated as a result of the gathering momentum of FinTech disruptors.

As stated during Finnovation Ethiopia 2017, I believe that:

Due to their potent blend of trail-blazing technology and disruptive innovation, FinTech players are positively impacting the digital transformation of financial services in Africa and, in turn, further spurring incumbent banks to rapidly ramp-up their own innovation initiatives to meet the financial needs of under-served markets across the continent.

The unique environment for financial services in Africa is fertile ground for innovative FinTech players who are capitalizing on the opportunities to disrupt or leapfrog established business models to make financial services more affordable, accessible and profitable across the continent.

The Digital Transformation of Banking in Africa

The impact of Blockchain, Open Banking, Mobile Money and Payments innovation are radically transforming the financial services landscape as FinTech disruptors intensify the challenge to incumbent banks in Africa and kickstart new opportunities.

Chris Principe, international Fintech thought leader, shared some persuasive insights:

“A very positive story, if one that is not yet well understood, is unfolding in Africa. New technology, new ideas and new business models are producing new opportunities. The distinctions between telecom services providers, payments services providers and financial institutions are breaking down. Innovative companies are using Blockchain technology and cryptocurrencies to resolve fundamental problems such as lack of access to electricity and lack of access to global financial markets.”

FinTech players are increasingly becoming an important part of the fabric of Africa’s financial
services ecosystem and the leading banks on the continent are now more urgently seeking to harness technology innovations, collaborate with FinTech startups, and create a platform to scale much faster – to make digital financial services pay.

Mountaga Diop, Founder & CEO of Ethiopian FinTech BelCash, also said that:

“When unbanked and underbanked communities have access to digital financial services, everyone benefits and FinTech can play a vital role in driving financial inclusion imperatives across the continent. There is an opportunity to change people’s lives while building scalable, profitable companies that consumers need and want.”

 

Finnovation Ethiopia 2017 is part of the FinTech Africa Series which regularly gathers leading
stakeholders and influencers in the African FinTech ecosystem, from start-ups to banking powerhouses, from the key markets across Africa and internationally.

Stay tuned for Finnovation 2018!

 

South Africa As A Bitcoin Hub: Three Use Cases

By
Alex Lielacher
-
0

Bitcoin’s adoption in most African countries has been rather slow. However, it has not been the case for South Africa.

South Africa stands out as a country that is home to several bitcoin initiatives that demonstrate how the world’s leading cryptocurrency can be used to provide solutions to local challenges.

Here is three use cases we wanted to share with you to show how SA intends to become a cryptocurrency nation:

Case 1: Bankymoon’s Smart Meter

Based in South Africa, Bankymoon is a software and blockchain consultancy firm that provides its clientele with bespoke solutions for digital currency integration. Established in 2014, Bankymoon aims to help organisations adopt blockchain technology with its smart energy meter that was introduced in 2015. The company seeks to make it easy for people to pay for their utility bills using cryptocurrencies such as bitcoin.

While most people rely on cash or banking services to make their utility payments, the cost of making such transactions are high. At the same time, overdue payments lead to accumulated utility debts by consumer and municipalities creating issues between them and suppliers. Instead of the post-paid system that is in use, Bankymoon’s smart energy meter will be prepaid and will allow for consumers to top up their accounts using cryptocurrencies.

The payments will be settled automatically hence eliminating delayed payments which lead to reduced debts on the side of the consumers. Additionally, energy suppliers will receive their payments on time eliminating the need for a confrontation between them, consumers and municipalities. The bitcoin payments will be real-time hence safeguarding energy suppliers from bitcoin price volatility.

Each smart meter has its own exclusive bitcoin address that once payment is made, Bankymoon computes the tariff and tops up the meter for the end user.

Case 2: Fines4U

Based in Alberton, Fines4U is a traffic offence assistance company that handles traffic payments for close to 8,000 individuals and 500 companies in South Africa. With bitcoin adoption soaring in South Africa, Fines4U has now made it possible for South Africans to pay their traffic fines using bitcoin.

According to Fines4U owner, Cornelia van Niekerk, since advertising the business will be accepting bitcoin payments as an option for clients to clear their fines, the response has been massive. The company that operates by negotiating on behalf of its clients for reduced fines or a complete withdrawal of the charged fine, generates revenue by charging its clients a 40 percent service fee.

Clients interested in paying their fines using bitcoin’s will have their pending amounts calculated then for a limited time, be able to clear the debt using bitcoin. Currently, all bitcoin payments will be made to Van Niekerk’s Luno account before they are paid on behalf of the clients in rand to the company accounts.

While this is definitely a boost to the adoption of bitcoin in the South African nation, Fines4U clients will need not worry about their details being out there as is the norm with conventional payment methods. The fact that bitcoin is a decentralised form of transacting that is paperless also means that there will be reduced administrative costs for Fines4U.

Case 3: The Sun Exchange

Based in Cape Town, The Sun Exchange seeks to bring change to the African society by promoting the use of clean energy and providing electricity to remote countries in Africa. The startup was founded in 2015 after the realisation that hundreds of thousands of people living in Africa lack access to clean energy and rely on unclean forms of energy to fuel their homes. This is despite Africa having plenty of sunshine.

Using bitcoin, The Sun Exchange has made it possible for people across the globe to invest in solar panels for projects in the African continent. The bought solar panels are then leased out to hospitals, factories, and schools among other institutions with investors earning rental income paid to them in bitcoin or local currency.

The platform is used to crowdfund with both investors and local communities benefiting from the partnership. Moreover, projects are not started unless the solar cells on sale have all been sold out. The peer-to-peer marketplace has various projects on their website that have been fully funded to date.

 

[Facts&Figures] Digital innovation in Africa’s insurance industry by Deloitte

By
Team Africa
-
0

Techfoliance is extracting key data and facts from industry reports on the rise of Fintech in Africa so that you can focus on what matters the most for you.

In this report published on August 2017, the consulting firm Deloitte identified how innovative technologies with a digital mind-set hold great potential for insurance providers to achieve growth and to develop new business models and services that are geared towards unlocking the BoP insurance market in Africa.

[divider]Key Figures[/divider]

While in South Africa life insurance accounted for about 80% of the country’s total gross premiums in 2016, in other large insurance markets such as Kenya, Morocco and Nigeria, life insurance accounted for around one-third.

BIMA delivers simple but quality insurance to BoP consumers via mobile technology, with cover of up to US$1,100 for as little as US$0.30 per month.

Between 2007 and 2016 gross premiums in Africa (excluding South Africa) grew almost twice as fast as the region’s GDP, reflecting an improved uptake in insurance.

Insurance penetration in Nigeria is low at approximately 0.4%, as a common perception in the country is that insurance companies refuse or delay claim payments.

With close to 52% internet penetration at the end of 2016, South Africa has the 5th highest penetration in Africa making the use of an online-based insurance product viable.

The Insurance Development Forum estimates that more than 90% of economic losses from natural hazards in low-income countries remain uninsured.

 

[divider]Key FACTS[/divider]

Breakdown of non-life premiums in largest markets, 2016e (% of non-life)

P2P insurance is an insurance model that is based on a group of associated or like-minded individuals that pool their premiums together to share risk, instead of paying a traditional insurance provider to insure their risk individually.

Examples of innovative models and products in the global insurance market

Traditional insurance products and loss assessment procedures are typically unaffordable for smallholder farmers.

 

 

Read the full report here

Afreximbank, a gateway for Africa’s digital transformation?

By
Team Africa
-
0

In April 2016, the African Export-Import Bank (Afreximbank), a pan-African Eximbank based in Egypt, first announced its intra-African trade strategy to strenghen trade among African countries to $250 billion by 2021.

Since then, the Afreximbank has accelerated and received the support from various financial organizations in Africa and beyond to contribute to the development of different types of projects in the continent.

The European Investment Bank (EIB) recently announced a €100 million loan for the Afreximbank to finance investments and projects between Europe and Sub saharan Africa. This will strenghen small and mid size investments made across 40 countries where Afreximbank is located.

Another example is for Egypt with the $500 million Export Credit Support Scheme (ECSS) signed between Afreximbank and the Export Development Bank of Egypt (EBE) to “protect against the risk of non-payment for loans or advances granted to exporters to meet short- or medium-term export contracts”.

In Rwanda, Afreximbank has made direct financing amounting to $155 million to support development projects in the country.

Dr Hippolyte Fofack, Afreximbank’s Chief Economist, recently detailed the Bank’s 5th strategic plan:

With our plan “Impact 2021: Africa Transformed”, we want to address the challenges facing African countries on their path to development.

In regards to Afreximbank’s active role in the continent, we can easily assume that the bank will also support digital financial services in the continent that will contribute to transform Africa, better serving SMEs’ needs and providing financially excluded population with tailored solutions.

 

African Fintech Founders #1 – Martin Ijaha: founder & CEO at Neyber

By
Team Africa
-
0

Techfoliance Africa is happy to highlight some of the most inspiring African Fintech founders’ stories. In this serie, we will introduce you to Martin ljaha, founder and CEO at Neyber.

Martin Ijaha is founder and CEO at Neyber, a London-based Fintech that has developed a financial wellbeing provider to help UK employees better manage their money.

Martin spent most of his career as an investment banker at Goldman Sachs. After over 6 years at the bank, he thought it was time to jump in another challenge. Back in 2012, he was closely following the rise of Fintech start-ups, and more specifically peer-to-peer lending companies.

After few months of work, in 2014, and together with two former investment bankers, the team announced the official launch of what would become Neyber in 2015.

Neyber was first inspired by a local tradition in Western Africa called Sou-Sou in which small groups of people are practicing informal rotating savings:

“My mother was a nurse. As I was growing up, she and her colleagues used to have a jar which they would all put cash in every week. At the end of the month, one of them would take the pot of money. This was very common right across Africa. It’s called Sou Sou. Meaning ‘pooling of funds’,” said Martin Ijaha.

What really differentiate Neyber from any other players in the market is their ambition to build a community of employees who can confidently deal with money. As it is the case with Sou-Sou in Africa, Neyber can let employees access to fairer finance when they need it.

Their solution already convinced many public sectors including teachers and police officers in the UK. So far the company has lent £70 million since its launch.

As stated by Neyber’s cofounder Monica Kalia to BI:

“Actually, employers increasingly understand that they need to understand financial well-being. We have a financial education portal and the aim there is to engage people with money so they’re much better informed.”

Neyber was also in the spotlight last September of this year after raising a huge £100 million in which Goldman Sachs was a lead investor.

 

African Fintech Mapping Week #5: SureRemit, Dopay, Ovamba and Kocela

By
Team Africa
-
0

Every week, Techfoliance highlights four promising Fintech start-ups across Africa in various verticals: Digital Banking, Payments, InsurTech or Investment. In this weekly FinTech mapping we have SureRemit, Dopay, Ovamba and Kocela.

[divider]Fintech Mapping[/divider]

SureRemit

SureRemit is a Nigeria-based FinTech that has developed a global non-cash remittance service enabled by blockchain. The start-up leverages on the merchant network of SureGifts and her global partners, to enable immigrants send e-vouchers that can be used to purchase goods and services at several quality merchants and pay bills globally.

Discover here: https://sureremit.co/

Dopay

 

Dopay is an Egypt-based FinTech that provides a cloud-based payroll service that allows employers to calculate salaries and make payments electronically. Dopay’s mission is to become the ‘day-to-day’ bank in markets with largely unbanked and financially underserved populations.

Discover here: https://dopay.com/

Ovamba

Ovamba is a Cameroon-based funding and logistics services provider for small and medium enterprises. Ovamba’s platform is specifically designed to make transactions as simple as possible via mobile to connect African SMEs to short term sources of funding using its proprietary risk model.

Discover here: https://www.ovamba.com/

Kocela

Kocela is a Kenya-based FinTech that is providing mobile payment solutions to banks in 5 countries: Kenya, Uganda, Tanzania, Rwanda and Burundi. The start-up has developed customizable mobile banking/payments solutions like the KCB Bank app and is said to be the most downloaded and used Banking App in East Africa.

Discover here: http://kocela.com/

 

1234...6Page 3 of 6

POPULAR

EDITOR CHOICE

POPULAR POSTS

POPULAR CATEGORY

© Invyo 2019