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Africa’s Financial Industry Strives for Digital Maturity in a Rapidly Evolving Landscape

By Staff Reporter  |  February 14, 2025

The African financial industry is at a crossroads, facing an era of unprecedented transformation. Driven by digitalisation, evolving governance, and a growing emphasis on sustainability, the industry is rapidly adapting to new realities but not without challenges.

The 2024 edition of the African Financial Industry Barometer by Deloitte and AFIS paints a picture of both momentum and challenge. It shows a sector navigating a delicate balance between innovation and mounting economic and regulatory pressures. The challenge now is whether financial institutions can evolve quickly enough to meet the needs of a changing market while ensuring financial inclusion for all.

The State of the Financial Market and the Digitalisation Gap

Africa’s financial sector is evolving, but a significant gap remains between ambition and execution. While financial institutions are eager to embrace digital transformation, many are still struggling with outdated infrastructure, limited connectivity, and a shortage of digital expertise.

Banks, fintechs, and insurers are increasingly investing in cloud computing, artificial intelligence, and big data to streamline operations, enhance fraud detection, and improve customer experiences. However, adoption remains inconsistent. For instance, only a small fraction of financial institutions have fully deployed AI. The report showed that while 71% are in the process of AI integration, only 2% have deployed AI projects.

At the same time, the continent’s financial ecosystem is shaped by external pressures. Inflationary trends and fluctuating interest rates force institutions to reassess their strategies. Faced with rising costs, 88% of financial institutions have had to adjust their investment priorities, while 76% are bracing for increased operational expenses.

These pressures have kept true digital maturity out of reach for most—only a few financial institutions have fully transformed their operations, highlighting the need for greater investment in technology and workforce training.

Efforts to address these challenges are underway, with initiatives aimed at fostering financial integration across the continent. Programs such as the Pan-African Payment and Settlement System (PAPSS), the African Continental Free Trade Area (AfCFTA), and the African Exchanges Linkage Project (AELP) are working to create a more connected financial ecosystem. However, their impact has been slow to materialize, with financial institutions citing regulatory inconsistencies, infrastructure limitations, and low adoption rates as major barriers

Strengthening Governance and Leadership

With digitalisation and financial complexity on the rise, governance structures are evolving to ensure resilience and accountability. More institutions are establishing audit and risk oversight committees, with 87% already having audit structures in place. Ethical leadership is also gaining attention, and innovation committees are becoming more common, reflecting a shift toward proactive decision-making in a rapidly changing environment.

Yet, diversity in leadership remains an area for improvement. Women remain underrepresented at the board level, with only 23% of institutions having more than a quarter of female board members. This figure is expected to rise as institutions make efforts to build more inclusive leadership teams.

Financial institutions are also expanding governance frameworks beyond traditional oversight. More organizations are forming innovation and ethics committees, recognizing that strong governance is crucial not only for managing risks but also for aligning digitalisation and financial inclusion strategies with long-term sustainability goals.

Adapting to a Shifting Risk Landscape

As financial institutions digitize their operations, the risk landscape is shifting. Cyber threats have become the most pressing concern, with over half of institutions citing significant cybersecurity risks. Operational risks, including system failures and fraud, are also major issues, with 45% of financial institutions reporting high exposure, signalling an urgent need for stronger security frameworks.

The regulatory landscape is also under scrutiny, with 66% of institutions believing current frameworks do not adequately support innovation. Many are advocating for more adaptable regulations that keep pace with digital transformation, ensuring both security and flexibility in an evolving market.

Expanding Financial Inclusion Through Innovation

Despite ongoing digitalisation efforts, financial inclusion remains a major challenge, particularly in underserved communities. Traditional banks and insurance companies continue to struggle with expanding access, whereas fintechs and telcos have emerged as key players in bridging this gap. A striking 94% of financial institutions recognize telcos as essential in expanding financial access, with fintechs developing innovative solutions to reach unbanked populations.

Despite these efforts, barriers remain. Low financial literacy, high transaction costs, and limited digital infrastructure hinder widespread adoption. Regulatory roadblocks and insufficient funding for fintech-led initiatives further constrain progress. Meanwhile, global tech giants such as Google, Apple, Facebook, and Amazon remain on the sidelines, perceived as potential disruptors but not yet deeply integrated into Africa’s financial landscape.

A Future Built on Collaboration and Inclusion

As the industry evolves, financial institutions are focusing on four key pillars for sustainable growth. Digital transformation remains a key focus, with accelerating investment in AI, cloud computing, and fintech partnerships. Enhancing financial performance is also another priority, with institutions optimizing profitability and operational efficiency.

Human capital development is also in focus, as institutions work to close the digital skills gap through training and workforce modernization. Additionally, risk management and regulatory adaptation are becoming essential, with firms strengthening compliance measures and cybersecurity resilience.

Sustainability also plays a growing role, with 43% of financial institutions integrating ESG principles into their strategies. Green finance is emerging as a promising area of growth, particularly in impact investing and renewable energy financing. However, carbon tracking and reporting remain underdeveloped, requiring further alignment with global sustainability standards.

Ultimately, all these efforts—from digitalisation and governance reforms to risk management and regulatory evolution—are deeply connected to financial inclusion. The future of Africa’s financial industry depends on how well institutions, regulators, and technology providers collaborate to create a more inclusive financial landscape. The decisions made today will determine whether Africa emerges as a leader in digital finance or struggles to keep pace with global advancements.

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Apis Partners Bows Out of Baobab’s Next Chapter as Beltone Acquires Stake

By Emmanuel Oyedeji  |  February 13, 2025

When Apis Growth Fund I, a private equity fund managed by UK-based Apis Partners, first invested in Nigerian-based Baobab, the vision was clear—to support a financial services provider that could empower small and medium-sized enterprises (SMEs) across Africa. Now, after years of strategic guidance and transformation, Apis Partners has signed binding agreements to fully exit its stake, marking its ninth and penultimate full divestment.

The stake is being acquired by Beltone Capital, a wholly owned subsidiary of Beltone Holding, one of the MENA region’s leading financial services providers. With this transaction, combined with purchases from other shareholders, Beltone secures a majority position in Baobab, reinforcing its commitment to expanding its presence in high-growth African markets. The deal, which was advised by Enexus Finance, remains subject to regulatory approvals.

For Baobab, this transition signals the next phase in its evolution. Under Apis Partners’ ownership, the company underwent a transformation that positioned it as a leader in financial services for underserved communities. Apis played a crucial role in reshaping Baobab’s leadership, appointing an experienced CEO, CFO, and CTO to drive long-term growth.

At the same time, it also spearheaded a comprehensive upgrade of Baobab’s technology infrastructure, ensuring the company could scale efficiently to meet growing demand. By streamlining operations and restructuring its geographical footprint, Apis helped Baobab optimize its efficiency and expand its suite of digital financial products, enabling it to better serve millions of SMEs and individuals in seven African markets.

Reflecting on the exit, Matteo Stefanel, co-founder and managing partner at Apis Partners, emphasized the firm’s long-standing commitment to financial inclusion. “Since the inception of the firm, Apis’ funds have invested in businesses that prioritize financial inclusion. We are proud of the role our team has played in helping Baobab leverage technology to promote financial inclusion across Africa, empowering individuals and SMEs who may not have had access to traditional banking systems previously. We are confident that the impact created in these communities during the fund’s investment will continue to thrive under Beltone’s stewardship.”

With Beltone’s acquisition of Baobab, the company is poised for further expansion and innovation. Beltone Holding’s Group CEO and Managing Director, Dalia Khorshid, highlighted the strategic significance of the transaction, describing it as a major step in the company’s regional expansion efforts. “This strategic acquisition marks a significant milestone in our data-driven regional expansion into high-growth African and emerging markets, reinforcing our commitment to financial inclusion and impactful product offerings.”

“Baobab’s strong market presence enhances our ability to provide innovative financial solutions, fostering its growth, enhancing its digital capabilities, and expanding its client base with scalable, technology-driven services that drive economic empowerment,” he continued.

For Apis, exits like this one serve as proof that its investment philosophy works—identify a company with strong fundamentals, provide the resources to accelerate growth, and ensure that it is in a position to continue thriving long after the investment cycle is complete.

Udayan Goyal, co-founder and managing partner at Apis Partners, underscored this legacy, stating, “Baobab has been a leader in providing vital financial services to the underserved SME market, which has often faced significant challenges accessing the financing needed to grow. Apis has supported Baobab in successfully bridging this gap, enabling SMEs to develop, create jobs, and support the local economy. We look forward to continuing to follow the Baobab story as it moves forward under the expert guidance of Beltone.”

Apis Partners, founded in 2014, specializes in growth equity investments at the intersection of financial services and technology. As an ESGI-native private equity and venture capital asset manager, it has built a reputation for supporting businesses that drive financial inclusion and economic empowerment. The firm with assets under management totalling approximately USD 2.3 B, provides catalytic growth capital to financial services and technology businesses worldwide.

With Baobab’s well-established market position and Beltone’s ambition for regional growth, this acquisition is set to unlock new opportunities for financial inclusion, digital transformation, and economic empowerment. As Beltone Holding takes the reins following regulatory approvals, all eyes will be on how it leverages Baobab’s robust market position to further drive financial inclusion in Africa.

Navigating International Payments with Nigeria's Top Virtual Cards

Navigating International Payments with Nigeria’s Top Virtual Cards

By Partner Content  |  February 13, 2025

It’s tough for Nigerians to pay for things online internationally because of recent restrictions on regular bank cards by the Central Bank of Nigeria (CBN). These restrictions have left many feeling cut off from global markets, making it hard to do things like buy courses on Udemy or shop on Amazon.

But there’s a solution: using the best virtual dollar cards available in Nigeria. These cards can help you bypass the limitations of naira cards and engage with the global digital economy. 

Here’s a curated list of the top virtual dollar cards in Nigeria that can reconnect you with international services:

Top 5 Virtual Dollar Cards in Nigeria

Get a virtual dollar card from either Cardtonic, Switch, Cleva, Bitmama, or Mintyn to break the barriers of traditional naira cards. 

1. Cardtonic

At a time when some Nigerian fintech brands are winding up their card services, Cardtonic stands tall, ensuring that Nigerians experience seamless cross-border payments. This is clear in the platform’s globally accepted virtual dollar card unveiled sometime in early 2024.

The Cardtonic virtual dollar card is your ticket to a world of global and secure transactions. From shopping online to paying for courses on e-learning platforms, the card is the reliable companion you can always count on. 

The funding flexibility of the virtual card puts it at a vantage point over its competitors. Users can load the card as much as they want to cater to their spending needs. That can be done directly with their Naira wallet balance, eliminating the bottleneck of currency conversion.

Cardtonic doesn’t just aim to connect you to a world of seamless cross-border payments. The platform ensures you’re totally protected while doing so. This is seen in its top-notch security measures like card’s deactivation. If you notice a suspicious activity with your card, you can immediately deactivate it on the Cardtonic app to protect yourself from fraud.

With some card providers offering virtual dollar cards for as high as $10, Cardtonic’s virtual dollar card which costs just $1.5 to create is one of the cheapest options out there.

Getting a virtual dollar card on Cardtonic requires just a few clicks. Sign up on the platform and provide the necessary credentials for identity verification. Proceed to fund your wallet in order to create your virtual dollar card, and there you have it.

2. Switch by Sterling

Switch by Sterling is a digital bank fully managed by Sterling Bank Ltd. This platform that promises hassle-free cross-border payments for its customers has enticing features like multi-currency savings.

Switch by Sterling offers a virtual dollar card that can be used to pay for goods and services on international platforms. 

3. Cleva

Cleva is a fintech brand largely known as a payment solutions provider. Users can create a Cleva US-based account in their names to receive USD payments from anywhere around the globe.

The platform bridges the gap between Nigerians and the global economy with its virtual dollar card. Shopping on your favourite e-commerce websites has now become akin to eating a piece of cake, thanks to the Cleva virtual USD card. 

4. Bitmama 

Cryptocurrency adoption has been spreading at a fast pace in recent times. Being able to pay for goods and services with your cryptocurrencies without the need to convert to local currency will be bliss. This is what Bitmama offers its customers.

With the Bitmama virtual dollar card, Nigerians can conveniently make payments on international platforms like Alibaba, AliExpress, Amazon, and Netflix with their USDT.

5. Mintyn Virtual Card

In a bid to salvage Nigerians from card rejections when making international payments, Mintyn launched its virtual dollar card sometime in 2023.

Since its unveiling, the Mintyn virtual dollar card has ushered in an era of smooth international transactions for both individuals and businesses in Nigeria.

Frequently Asked Questions About Paying Online With Virtual Dollar Cards In Nigeria

1. What Is the Best Virtual Dollar Card to Make International Online Payments in Nigeria?

The Cardtonic virtual dollar card is your best bet when it comes to making international online payments in Nigeria. The card is widely accepted, so the chance of your transactions getting declined is minimal.

2. Which Virtual Dollar Card Can I Use as a Nigerian to Pay for Facebook Ads?

You can use the Cardtonic virtual dollar card to pay for Facebook ads. The card is also readily accepted by other Meta subsidiaries like Instagram.

3. Which Virtual Dollar Card Service Is Currently Serving in Nigeria?

The Cardtonic brand is currently serving the Nigerian market with its globally accepted virtual dollar cards. Their card has become a choice virtual card in Nigeria.

4. How Do I Pay for iCloud in Nigeria?

You can pay for iCloud in Nigeria with the Cardtonic virtual dollar card. Quickly sign up on the Cardtonic platform and complete the simple KYC process to get the virtual dollar card.

5. Can I Use a Cardtonic Virtual Dollar Card to Pay for a Microsoft 365 Subscription in Nigeria?

Yes, you can use the Cardtonic virtual dollar card to pay for a Microsoft 365 subscription in Nigeria. The card can also be used to pay for a Spotify subscription.

So here’s what you can do

Get connected to the global digital economy when you get a virtual dollar card from either Cardtonic, Switch, Cleva, Bitmama, or Mintyn today.

The best virtual dollar cards in Nigeria are here to lead you to a world of financial freedom that you deserve. The choice to get liberated from the shackles of Naira cards is in your hands. Don’t hesitate to get a virtual dollar card today!

Egypt Proves Tricky Yet Promising For dLocal Amid LatAm Fintech Invasion

By Henry Nzekwe  |  February 12, 2025

Egypt’s digital commerce landscape is evolving rapidly—and Uruguay-born dLocal, which first set sights on the market in 2018, is riding the crest of this wave. Despite deep-seated cultural reliance on cash, marked by 57% of transactions still conducted in physical currency, dLocal is capitalising on Egypt’s burgeoning e-commerce market, where 38% of the population shops online every week, the average consumer is just 24, internet penetration stands at 72%, and mobile ownership soars to 94%, per recent stats.

Sherif Radi, dLocal’s Egypt Country Manager, shed light on the dual nature of the market in an in-depth interview with WT. “There’s a long-standing cultural preference for cash, stemming from trust in its reliability and tangibility,” he explained. Yet, Radi noted that national initiatives—such as the introduction of Meeza, mobile wallet regulation, and the expansion of instant payment networks—are gradually nudging consumers toward digital alternatives. “Enhancing digital infrastructure and incentivising digital transactions remain crucial,” he added, underscoring the need to overcome challenges like limited banking access and digital literacy, particularly in rural areas.

dLocal, which went public in 2021, helps global businesses accept payments from customers in various markets by offering local payment methods like mobile wallets, bank transfers, and cash. Its strategy in Egypt hinges on its ability to adapt to local nuances. The company operates as a comprehensive payment processing platform that integrates popular local channels like Fawry, mobile wallets, and bank transfers. This enables international merchants to collect payments in Egyptian pounds and sidestep the volatility of currency conversion.

“By processing payments in local currency, dLocal helps ensure that businesses can maintain stable pricing and avoid the unpredictability associated with currency conversion,” Radi emphasised.

Cash rules, but Digital booms

Recent performance figures highlight Egypt’s newfound role as a leading market for dLocal’s African operations. In the third quarter of 2024, Egypt generated USD 18.6 M in revenue—a 318% year-over-year increase that now accounts for 10% of dLocal’s global revenue. For the first nine months of 2024, Egypt contributed USD 72.6 M, up significantly from USD 18.3 M in the same period last year. This stellar growth contrasts sharply with Nigeria’s performance, where a steep 80% revenue drop, largely driven by a devalued naira, has relegated Nigeria from being a growth engine to a cautionary tale of economic volatility.

The Egyptian market, while lucrative, is not without its complexities. Radi pointed out that Egypt’s regional diversity—spanning bustling urban centres like Cairo, Giza, and Alexandria as well as more remote rural areas—demands tailored approaches. “Understanding local consumer behaviour is essential,” he told WT. “Building strong community connections and leveraging local insights can significantly boost brand loyalty.” A robust on-the-ground presence and partnerships with local players are key in helping global merchants navigate regulatory landscapes and consumer preferences, ensuring that digital payment solutions are not only adopted but trusted.

Meanwhile, the competitive scene is heating up as Latin American fintechs increasingly eye Africa. Recent trends reveal that companies like Brazil-based EBANX, Colombian fintech Minka, and PayRetailers are making significant inroads, undeterred by the existence of formidable African rivals such as Nigerian unicorn Flutterwave, as well as Stripe-owned Paystack.

These LatAm firms, drawing on their experience in markets with similar cash reliance and fragmented payment systems, view Africa as a vast, underpenetrated digital gold rush. They are betting on unified APIs and localised solutions to overcome the continent’s complex payment infrastructures—a challenge dLocal has already met head-on.

dLocal’s unified platform—capable of handling both pay-ins and payouts across more than 40 countries via a single API—affords it a competitive edge, Radi asserts. “Our approach not only enhances the user experience for consumers but also enables merchants to transition effortlessly from cash-based transactions to secure digital payments,” he noted. This scalable technology, combined with strategic local partnerships, positions dLocal as one to watch in Africa’s digital payments space.

While the landscape remains challenging—with cultural preferences, regulatory bottlenecks, and infrastructural gaps testing the resolve of fintech operators—the explosive growth in Egypt’s e-commerce and digital payments signals a promising narrative. Egypt is proving to be a tricky but fertile market, one that offers a compelling blueprint for success amid an emerging wave of Latin American fintechs storming the African continent.

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USD 6 M on the Line as IFC Weighs Investment in Flat6Labs Africa to Support Early-Stage Startups

By Staff Reporter  |  February 10, 2025

The International Finance Corporation (IFC), part of the World Bank Group, is considering a USD 6 M equity investment in Flat6Labs Africa, a MENA-based seed and early-stage venture capital fund.

This investment, channelled through the IFC Startup Catalyst Program (ISC), is expected to bolster Flat6Labs’ Africa Seed Fund which focuses on nurturing pre-seed and seed-stage tech startups across North, West, and East Africa. The proposed investment could mark IFC’s fourth investment in Flat6Labs’ managed funds.

The fund will be managed by Flat6Labs For Financial Consulting S.A.E. leveraging their extensive experience in supporting early-stage companies. 

A crucial element of this initiative is the support provided by the Women Entrepreneurs Finance Initiative (WeFi) through its Blended Finance Facility (BFF). This partnership highlights a strong emphasis on gender-lens investing, ensuring that women entrepreneurs in the region have equitable access to the resources and capital they need to thrive.

The Africa Seed Fund, with a target fund size of USD 85 M and a hard cap of USD 100 M, aims to provide crucial early-stage funding and support to promising startups.

Launched in 2023, the Fund primarily focuses on North, West, and East Africa, with a target allocation of 49% of invested capital to Egypt. Over the next five years, it aims to invest in over 160 pre-seed to pre-Series A tech startups. Focus sectors include HealthTech, FinTech, EdTech, GreenTech, AgriTech, ClimateTech, and others contributing to digital inclusion and addressing social and environmental challenges.

Investment tickets will range from USD 150 K to USD 500 K through the Flat6Labs’ Africa Seed Program, with additional seed funding available for experienced founders outside the program. The fund will also participate in follow-on investment rounds.

This significant capital injection is projected to create over 14,000 jobs, support more than 1,200 founders (with a target of 20% female participation), and generate over USD 700 M in revenue.

Beyond funding, Flat6Labs Africa offers comprehensive support, including mentorship, access to industry experts and investors, business development training, and other resources. This holistic approach recognizes the multifaceted needs of early-stage startups.

The IFC’s potential investment is timely, aiming to address the critical need for early-stage funding in Africa’s rapidly growing tech ecosystem. Flat6Labs aims to fill a vital market gap, providing not only capital but also the guidance, connections, and skills necessary for startups to scale.

This proposed investment aligns with the IFC’s broader strategy of promoting private sector development and innovation in emerging markets. By supporting early-stage startups, the IFC contributes to job creation, economic growth, and a thriving entrepreneurial ecosystem. The WeFi partnership further strengthens the project’s potential to empower women entrepreneurs and advance gender equality.

With the backing of IFC and We-Fi, Flat6Labs Africa is well-positioned to catalyze the growth of innovative businesses, create employment, and drive economic development across North, West, and East Africa. The focus on gender and expansion into fragile and conflict-affected states amplifies the potential for positive social impact, making this a significant initiative in the African startup landscape.

African Annual Venture Funding 2024: WT x Future Africa Report

African Ventures Raised USD 2.07 B in 2024: Future Africa & WT Report

By Team WeeTracker  |  February 10, 2025

WT Media Inc. and Future Africa have released the African Venture Capital Report 2024, revealing a year of continued shifts for the continent’s startup ecosystem.

African funding patterns closely mirrored global trends, with startups raising USD 2.07 B in publicly disclosed funding—a 4.5% increase from 2023, despite a 2% drop in deal volume. We have also seen more new fund launches announced than capital deployed, which gives rise to cautious optimism for 2025.  

However, despite the slight increase in overall funding, we have seen significant shifts across investment stages. Early-stage funding has seen a significant decline from 31% in 2021 to now 9% of total funding, while growth and late investment stages have increased their share of funding. 

Mia von Koschitzky-Kimani, Managing Partner at Future Africa, highlighted this shift, saying, “Given the stark declines in investment capital at angel, pre-seed and, to some extent, seed stages, we should expect thin pipelines at growth and late stages where lots of capital has been raised recently. We are already seeing very strong demand in our portfolio for companies that are reaching Series A territory .”

We expect the underallocation to early stages to lead to significant gaps in pipeline at growth and late stages going forward. 

In terms of sectors, Fintech maintained its dominance, accounting for 51% of total funding, but the sharp rise of climate-focused investments pushed the energy and environment sector to 27% driven by significant appetite of the development investment sector to fund climate. This surge, however, came at the expense of historically prioritised sectors like healthcare, education, and mobility despite the importance of these sectors for Africa’s socio-economic development.

NJ, Founder of WT Media, emphasised the need for capital to align with Africa’s unique opportunities, stating, “Africa’s startup ecosystem continues to evolve, showing incredible resilience and potential. But for the continent to truly unlock its innovation and economic power, we need investments that align with our unique opportunities—capital that supports long-term growth, embraces bold ideas, and empowers African entrepreneurs to lead the charge.”

Investors are also increasingly turning to debt financing, which gained significant ground over equity in 2024, particularly in climate-related sectors. Nowhere was this more evident than in Kenya, which led the continent in total funding with USD 537 M, benefiting from an influx of climate-focused debt capital. Egypt, South Africa, and Nigeria followed, with the four leading markets accounting for 80% of total VC funding, reaffirming their dominance.

As Africa’s venture capital ecosystem matures, the focus is increasingly on resilience, market fundamentals, and long-term scalability over short-term hype. The full report offers a deep dive into these trends, sectoral shifts, and the evolving investor landscape.

We are excited to partner with WeeTracker to shape a narrative about the African Venture Capital landscape that combines the hard data with what we are seeing on the ground every day,” von Koschitzky-Kimani said.

NJ added, “A heartfelt thank you to our partners, Future Africa, for their unwavering dedication and collaboration on this report. Their commitment to applying every insight and learning has been invaluable, elevating this report to a truly top-notch resource for anyone seeking a clear and accurate picture of Africa’s venture capital landscape.

Download the African Venture Capital Report 2024.

For media inquiries, contact [email protected].

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Private Equity

AfricInvest’s Ambitious SME Fund Gains USD 10M Shot in the Arm from Proparco

By Staff Reporter  |  February 7, 2025

Small and medium-sized enterprises (SMEs) form the backbone of Africa’s economy, driving job creation and fostering innovation. Yet, despite their importance, many SMEs face persistent challenges in accessing capital and adopting sustainable business practices essential for long-term growth.

In a strategic move to address these issues, AfricInvest, a Pan-African private equity firm and key player in African impact investing, launched its Small Cap Fund to support high-potential SMEs across the continent.

A key milestone in the fund’s development is a recent backing from Proparco, the private sector arm of the Agence Française de Développement (AFD) which recently made a significant EUR 10 M (USD 10.4 M) investment in the fund. This builds on a partnership between the two organizations that spans more than 25 years driven by a shared vision of fostering sustainable growth and economic resilience.

This fund reflects our ambition to strengthen the capacities of African entrepreneurs and respond to economic, social, and environmental challenges in a sustainable manner,” said Jérémie Ceyrac, Proparco’s Investment Director commented on the significance of the collaboration.

With an ambitious fundraising goal of up to EUR 180 M (USD 187 M), the fund will focus on supporting SMEs across North, East, and West Africa, particularly those operating in sectors crucial to the continent’s future, such as agribusiness, healthcare, and education. These businesses not only provide essential goods and services but also have the potential to lead innovation and create meaningful employment opportunities.

“This investment aligns closely with Proparco’s 2023–2027 strategy, which emphasizes promoting sustainable development and supporting African businesses through tailored financial solutions. The initiative also qualifies for the 2X Challenge, a global effort to promote women’s economic empowerment by mobilizing capital for projects focused on gender equity,” Jérémie noted

Brahim El Jai, Senior Partner at AfricInvest, also highlighted the transformative potential of the initiative, stating, “By combining financial support with our local and multi-regional expertise, we are supporting innovation, job creation, and the adoption of climate strategies. Our aim is to help these companies generate measurable economic, social, and environmental value while strengthening their position in strategic markets.”

Beyond financial backing, the Small Cap Fund is designed to help companies adopt inclusive and responsible practices. Gender equality and climate adaptation will be key focal points, with AfricInvest providing guidance to businesses as they integrate sustainable strategies aligned with the Paris Agreements.

So far AfricInvest’s vision has drawn international confidence. The International Finance Corporation (IFC), through its SME Ventures Programme, has proposed an equity investment of up to USD 15 M. The U.S. International Development Finance Corporation (DFC) is also part of the lineup of investors supporting the initiative with a USD 15 M investment. These commitments underscore the growing international confidence in AfricInvest’s ability to identify and support transformative businesses that drive sustainable development.

As AfricInvest continues to secure investments and identify promising SMEs, the Small Cap Fund is positioned to become a powerful catalyst for sustainable growth in Africa. By empowering businesses to embrace responsible practices, AfricInvest, Proparco, and potentially the IFC are shaping a future where economic progress and social impact go hand in hand.

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A USD 100 M Climate Fund Bets on Women to Drive Climate Adaptation Across Africa

By Staff Reporter  |  February 7, 2025

Recent reports highlight a troubling paradox: women are disproportionately affected by climate change, despite being uniquely positioned to drive climate adaptation solutions. Recognizing this gap, the Grameen Crédit Agricole Foundation, Beyond Finance, and FosterImpact have launched the Women Empowerment for Climate Fund, an ambitious initiative aimed at raising USD 100 M by the end of 2025.

The fund seeks to empower women to lead adaptation efforts in response to climate change, financing local enterprises and microfinance institutions that support women’s needs, champion female leadership, and advance climate-smart solutions across Asia and Africa.

The decision to launch this fund is driven by a growing recognition of the dual role women play in the climate crisis. They are disproportionately affected by its impacts despite possessing invaluable knowledge crucial for climate resilience. Across rural and urban landscapes, women are central to managing food, water, and energy resources. Their ingenuity often leads to innovative local solutions for resource conservation and sustainable agriculture.

Despite their vital contributions, women face significant barriers. They are frequently excluded from decision-making processes and lack access to financial resources that could help scale their solutions.

A 2024 FAO study spanning 24 countries and involving 100,000 households starkly illustrated the economic toll of climate change on women. The study found that a one-degree rise in temperature would lead to a 34% decline in women’s income. Periods of drought and erratic rainfall exacerbate their burdens, forcing them to work harder and travel longer distances to secure essentials like food, water, and firewood.

The Women Empowerment for Climate Fund aims to change that narrative by prioritizing investments in sectors critical to women’s climate adaptation, particularly those focusing on clean water access, clean energy solutions, and sustainable agriculture.

Beyond financial support, the fund seeks to provide technical assistance to ensure the success of women-led projects. The fund ties its loans to impact indicators such as an increased representation of women in leadership roles and the development of gender-specific climate adaptation products that will guide the allocation of resources and measure success.

This initiative brings together the expertise of three organizations with extensive expertise in social impact and financial inclusion. The Grameen Crédit Agricole Foundation recognized for its work in alleviating poverty through financial inclusion with a strong focus on women, has partnered with Beyond Finance, a Hong Kong-based consulting firm specializing in impact investment and international development, and FosterImpact, an advisory firm dedicated to advancing the Sustainable Development Goals through inclusive finance and climate resilience strategies.

Together, they are betting on women as agents of change. Véronique Faujour, Managing Director of the Grameen Crédit Agricole Foundation, articulated the importance of the fund: “We are convinced that women are the real agents of change and that they need to be given greater responsibility and involvement in decision-making. This is not just a question of equality; for us, it is a necessity if we are to develop the economic growth of our regions, and it is a prerequisite for the success of climate policies.”

By amplifying women’s leadership and providing them with the financial tools they need, the Women Empowerment for Climate Fund seeks to create a more resilient and equitable future. As the climate crisis deepens, harnessing the potential of women is not only a matter of justice but also a strategic necessity for sustainable development.

Africa’s Financial Sector Chases Digital Dreams In High Stakes Race

By Staff Reporter  |  February 5, 2025

Africa’s financial industry is embracing digital transformation at an accelerating pace, yet the journey remains riddled with challenges. According to the 4th edition of the African Financial Industry Barometer, produced by Deloitte and the Africa Financial Industry Summit (AFIS), financial institutions are prioritising tech-driven growth—36% of cloud projects have reached maturity, and 84% of organizations are actively pursuing technological partnerships.

However, this digital push exposes critical weaknesses. While banks, insurers, and fintechs increasingly collaborate on financial solutions, only 2% of institutions report full digital competency maturity. A significant skills gap persists, threatening to slow the industry’s momentum. And despite artificial intelligence (AI) being a hot topic, only 2% of financial institutions have deployed AI projects, while 71% are still in the early stages of adoption.

The African financial sector stands at a defining moment, propelled by digitalisation but constrained by structural inefficiencies, regulatory uncertainties, and economic headwinds.

Fintechs Surge Ahead, Banks Tread Carefully

Fintech firms remain the most bullish players in Africa’s financial landscape, with a confidence score of 9.25 out of 10 regarding growth over the next three years. Meanwhile, traditional banks and insurers are adopting a more measured approach, navigating challenges such as economic volatility, regulatory hurdles, and cybersecurity threats.

Confidence levels, though high, have dipped compared to 2023. Still, 72% of financial stakeholders maintain a positive outlook, even as concerns mount over inflation, asset quality deterioration, and declining investor interest.

Regulatory Uncertainty and Investor Skepticism

While digital finance is booming, regulatory clarity remains a pressing concern. Only 55% of industry leaders consider regulatory requirements clear, and a striking 50% rate regulator-industry dialogue as insufficient or poor. The call for harmonised pan-African financial regulations is growing louder, particularly in areas such as digital finance oversight, sovereign debt management, and sustainable finance.

At the same time, international investor interest in Africa’s financial sector is waning. The report points to geopolitical instability, market volatility, and uneven economic performance as key deterrents. To counter this, African financial institutions are doubling down on strategic partnerships, particularly in cloud computing and digital payments, to maintain competitiveness.

Cyber Threats and Sustainability in Focus

As digital finance expands, cybersecurity risks are surging. More than 52% of financial stakeholders now rank cyber threats as the top industry risk, surpassing concerns like inflation and talent shortages. The sector’s digital ambitions make it increasingly vulnerable to fraud, data breaches, and operational disruptions.

Meanwhile, sustainability is no longer a peripheral concern. Financial institutions are integrating ESG (Environmental, Social, and Governance) principles, impact investing, and eco-friendly insurance products into their operations. However, the industry is still struggling with carbon footprint measurement, signalling a gap between intentions and execution.

Despite the challenges, efforts to strengthen financial integration across Africa remain a priority. Initiatives like the Pan-African Payment and Settlement System (PAPSS), the African Continental Free Trade Area (AfCFTA), and the African Exchanges Linkage Project (AELP) have the potential to drive industry-wide transformation. Yet, progress is slow—only 20% of PAPSS is operational, compared to 8% for AfCFTA and 7% for AELP.

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Saviu Ventures’ Early Bet on Lapaire Pays Off with a Major Exit

By Staff Reporter  |  February 4, 2025

Saviu Ventures, a leading venture capital firm focused on Francophone Africa, has successfully exited its investment in Lapaire, a fast-growing pan-African eyewear company. The firm sold its 22% stake to Creadev, a private equity investment firm based in Paris, France and backed by France’s Mulliez family, known for owning the Auchan supermarket chain and other major brands.

This milestone marks the culmination of a six-year partnership that saw Lapaire grow from a small Kenyan startup into a dominant player in Africa’s optical industry with Saviu’s early bet on Lapaire proving to be a major catalyst for the growth.

The Early Bet That Changed Everything

Founded in 2018 by CEO Jérôme Lapaire, the company set out to solve a major healthcare challenge; 80% of visually impaired people in Africa do not receive proper care, according to the World Health Organization.

For many, the problem wasn’t just a lack of awareness—it was affordability, access, and the simple fact that no one had ever told them they could see the world more clearly.

Lapaire set out to tackle this issue by offering free eye tests and affordable, stylish eyeglasses starting at just USD 30, with flexible payment plans designed for low- and middle-income consumers, many of whom lack health insurance. According to its claims, 70% of Lapaire’s customers are first-time eyeglass wearers.

At a time when few investors were looking at Africa’s underserved eye care sector, Saviu Ventures saw an opportunity and played a pivotal role in expanding the company into Francophone West Africa, where demand for affordable vision care is immense.

In 2018, Saviu became Lapaire’s first institutional investor, backing the company at the pre-seed stage. Over the years, Saviu participated in multiple follow-on funding rounds following with a USD 200 K seed round in late 2018, and another undisclosed round in 2019 through its EUR 10 M (USD 10.4 M) Saviu I fund. The Saviu I fund, launched in 2018, is sector-agnostic and invests from seed to Series A stages in African early-stage startups, with a strong focus on Francophone Africa.

But Saviu wasn’t just writing checks. They were hands-on, helping Lapaire expand into West Africa, refine its business model, and build a leadership team that could scale the company. One of their biggest moves was introducing Louis Gascoin as COO and co-founder, whose experience in Francophone Africa’s retail sector proved invaluable.

With Saviu’s backing, Lapaire went from a handful of branches in Kenya to nearly 90 optical branches across Côte d’Ivoire, Mali, Burkina Faso, Benin, Togo, and Uganda, with a team of 400+ eye care professionals. The company has now served over 300,000 consumers and raised over USD 7 M in equity and debt from major investors like AfricInvest, Proparco, I&P, AAIC, and Beyond Capital.

A New Era with Creadev

Now, after six years of partnership, Saviu Ventures has passed the baton. Its 22% stake in Lapaire was acquired by Creadev, an investment firm backed by France’s Mulliez family. Creadev’s expertise in scaling consumer-focused businesses is expected to support Lapaire’s next phase of growth.

The partnership with Creadev signals a new phase—one where Lapaire can optimize its supply chain, reach new underserved markets, and bring life-changing vision care to even more people.

For Saviu, this isn’t just an exit—it’s proof that investing in impact-driven, scalable businesses in Africa pays off. The firm returned multiple times its investment and is now raising its second fund, Saviu II, which has already secured its first close of EUR 12 M (USD 12.5 M) toward a target of EUR 30-50 M (USD 31 – 52M) by 2025.

Despite the Lapaire exit, Saviu’s portfolio remains strong, including Workpay, Talent2Africa, Rubyx, Waspito, Paps, Julaya, Anka, Wallets.Africa, Kamtar, and others—further reinforcing its role as a key player in Africa’s venture capital landscape.