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The Front Page of Global Fintech

The the largest fintech community in the world. Subscribe to our newsletter to stay up to date on the latest in news opinions, and all things financial technology.

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The New Fintech era in ๐Ÿ‡น๐Ÿ‡ฟ; Selcom acquired a bank(TWIF- Africa 06/10)

The New Fintech era in ๐Ÿ‡น๐Ÿ‡ฟ; Selcom acquired a bank(TWIF- Africa 06/10)
Neobanks in the Middle East and Africa

Hi Fintech friends ๐Ÿ‘‹,

Here are the highlights of what happened in African Fintech this week;

  • Tanzanian top Fintech acquired a bank.
  • Sudan based and YC backed startup raised $5 Million.
  • The Central Bank of Nigeria revoked the banking license of a bank where at least 90% of the bankโ€™s active loan portfolio of around $471.5 million was considered lost or doubtful as of March 31, 2024.
  • Egyptian startup acquired a licensed brokerage to expand its insurtech platform.
  • Pan-African fund raised $27.18 Million.

๐Ÿ’ธFundraise and Exits

  • Sudan-based YC-backed Elevate raised $5 Million to provide fintech to freelancers globally.
YCโ€™s Most Valuable African startups
  • Egyptian startup Mal Bazaar acquired a licensed brokerage to expand insurtech platform.
Insurtech companies in Africa

๐Ÿ’ฐ Venture Funds

  • The European Investment Bank (EIB) invested $27.18 Million into Amethis Fund III, a pan-African fund.
Innovation and Investments in Africa
  • How can Africa create more angel investors.

๐Ÿš€ Partnerships & Product Launches

  • Rwanda planned to create its own Central Bank Digital Currency (CBDC) within two years, offering a secure, free, and convenient alternative to conventional cash.
More African Central Banks Are Exploring Digital Currencies
  • Zone launched blockchain-powered PoS payment gateway to tackle chargeback fraud.
  • Cross-border payments fintech, EBANX expanded strategic partnership with South Africa-based instant EFT payments provider, Ozow.
  • VGS and Onafriq Partnered to Increase Security and Payments Innovation for Fintechs in Africa and the Middle East.
  • Skaleet and Smile ID partnered to Revolutionize Digital Banking Security and Inclusion in Africa.
Biometric Fraud Rate by Industry

๐Ÿ‘” Leadership Lineup

  • Ecobank Group appointed Papa Madiaw Ndiaye as Board Chairman.

๐Ÿ“ฐ News of the Week

  • Tanzanian Fintech Selcom acquired a bank.
Selcom Microfinance Bank

Selcom started in 2001 in Tanzania, as an airtime distributor for Celtel, the telecom company that was later acquired for $3.4 billion. Over the past 23 years, Selcom has evolved from being an airtime distributor to providing merchant payments, agency banking, card issuing, e-commerce, and switching services for banks. This week, it entered the banking sector after acquiring Access Microfinance Bank Tanzania.

Three years ago, Selcom wanted to launch its full digital consumer bank service  in partnership with a bank, but they were not able to do so. Not being able to launch banking with a bank partner inspired Selcom to acquire a bank? Maybe yes, maybe no.

Selcom has over 60,000 agents on its agency banking network, 100,000 merchants on its payments services and has integrated with over 50 banks and financial institutions in Tanzania. This bank acquisition might be a great opportunity for them to extend their business model and make money on more financial services like credits and more.

๐Ÿ‘€ Eye Openers

  • A look at the twin East African-born leading payments fintechs.
Selcom and Cellulant

Selcom and Cellulant are prominent payments companies in East Africa. While Selcom was born in Tanzania and Cellulant in Kenya, there are a few similarities between the two that tell a story.

Both started in 2001; Selcom in Tanzania and Cellulant in Kenya.

Both didnโ€™t start with payment services; Selcom began as an airtime distributor while Cellulant started as a ringtones seller.

Both are now leading fintechs in East Africa; Selcom has over 100,000 merchants and, last week, it acquired a bank. Cellulant operates in 18 countries and processes $13 billion a year.

๐Ÿ“‘ Read of the week

  • Payments should be free, That's when financial services will include everyone.(Substack)

๐Ÿ“– Other News, Reads, and Media

  • Nigerian fintech startups could spend over $1 million on KYC address verification.
  • The Central Bank of Nigeria lifted a six-week-long ban on onboarding new customers imposed on five of the countryโ€™s most prominent fintech startups: Paga, OPay, Kuda, Palmpay, and Moniepoint.
  • The Central Bank of Nigeria revoked the banking license of Heritage Bank, minutes after the Nigeria Deposit Insurance Corporation visited the bank.Heritage Bank struggled with huge Non-performing loans for years. According to internal documents seen by TechCabal, at least 90% of the bankโ€™s active loan portfolio of around $471.5 Million was considered lost or doubtful as of March 31, 2024.

๐ŸŽฅ VIDEO INTERVIEWS/DISCUSSIONS

  • Payments in Africa: a Cross-Border, Cross-Device Revolution Discussion with executives from Fintechs like Onafriq and banks like Standard Bank Group.


๐Ÿฆ‰ Tweet of the Week

๐ŸŽฏ Fintech Opportunities

๐Ÿ‘๐Ÿฝ๐Ÿ‘Ž๐Ÿฝ  Did you enjoy this edition of This Week In Fintech Africa? Please share your feedback with me on Twitter or LinkedIn .