Financial Inclusion Benefits

Africa is NOT a Country And Treating It Like One Could Cost You Millions. Last week I said it, and I’ll say it again: the biggest mistake investors make is thinking Africa is a monolith. This infographic from Afridigest is the perfect explanation for why that mindset is so dangerous. If you are building or investing in Fintech, you are navigating FOUR market archetypes. You cannot copy-paste a winning strategy from Lagos to Nairobi. The infrastructure dictates the product: ➡️ Banking Bastions (South Africa, Morocco): Compete with entrenched banks; products must inspire trust.  ➡️ Mobile Money Mavens (Kenya, Ghana): Telcos are gatekeepers; if you don’t integrate mobile money, you’re invisible.  ➡️ Transformation Titans (Nigeria, Egypt): High-velocity fintech frontiers; startups shape the economy in real-time.  Now, this doesn't mean we should ignore the push for unity. The AfCFTA (African Continental Free Trade Area) is the most ambitious project on the continent. With the rollout of the Digital Trade Protocol and the Pan-African Payment and Settlement System (PAPSS), we are finally building the pipes to connect these 54 markets. The reality: AfCFTA is the goal; Afridigest’s map is the starting line. Bottom Line for 2026: To win in African Fintech today, you need a "Dual-Track" Strategy ✅ Respect the Archetype: Build for the specific infrastructure of the market you are in now. ✅ Prepare for Integration: Ensure your tech stack is ready for the cross-border interoperability that the AfCFTA promises. Capital alone isn’t enough. Context is everything. Don’t wait for a unified Africa to start building, but don’t build so narrowly that you’re trapped when the borders finally open.

Unlocking Affordable and Patient Capital for MSMEs in Africa Can Africa build financial systems that truly serve its entrepreneurs and redefine how small businesses grow, scale and sustain themselves? This week on the Unlocking Africa Podcast, I had the pleasure of speaking with Dr Henry Clarke Kisembo, Group Global Lead and Executive Chairman of Development Associates Link International (DALI), an organisation driving inclusive finance, digital transformation and sustainable business development across Africa and beyond. With over 25 years of experience spanning fintech innovation, agrifinance, investment strategy and development finance, Dr Kisembo has worked with leading institutions such as the World Bank, African Development Bank, USAID and UN Capital Development Fund to design systems that empower MSMEs and strengthen local economies. Explaining the challenge, he told me: “Investment readiness is one of the key challenges. A company must be compliant, from governance and tax to certification, before external financing can come in.” And on the solution: “Patient and affordable capital should be long term and low cost. MSMEs cannot survive on short term loans at 36% interest. We need capital that allows them to grow, not collapse under debt.” Dr Kisembo shared how DALI is rethinking MSME financing, structuring blended and alternative capital models that are tailored to the real needs of entrepreneurs. From agriculture and mining to real estate and logistics, his team is helping to build legacy companies, not just short term ventures. He also highlighted how fintech innovation is transforming access to finance: “Fintechs have broken the monopoly of banks. Agency banking and digital platforms are bringing financial services closer to MSMEs, cutting transaction times from days to hours.” Key takeaways from our conversation: → Why Africa’s MSMEs need patient, affordable and flexible capital → How digital innovation is expanding access to finance → The policies and partnerships needed to unlock private capital at scale → Why the future of MSME growth will be shaped by green finance and inclusive investment Dr Kisembo left us with an inspiring message: “The future is bright, but we must embrace technology, rethink policy and move faster to match the pace of innovation.” If you care about inclusive finance and entrepreneurship, this is a conversation you will enjoy. ⬇️ Listen now — link in the comments below ⬇️ #MSMEFinance #Fintech #PatientCapital #Entrepreneurship #DigitalTransformation #PodcastHost #Podcast

After reviewing more pitch decks these past few days, I see African fintech founders are still flogging the dead horse that is "banking the unbanked" as a lazy fundraising pitch. From Yaounde to Cape Town, it’s the same story, another mobile wallet, payments app, another promise to bring financial inclusion to the masses. Truth is: most Africans are not unbanked because they lack access; they’re unbanked because they lack income. A new app won’t change that. The Brutal Truth Lack of Disposable Income – People don’t need more fintech solutions; they need more money. Without increased economic productivity, most “financial inclusion” solutions remain useless. Broken Unit Economics – Many fintechs rely on unsustainable VC fueled growth, acquiring “users” who don’t generate revenue. Regulatory Capture & Infrastructure Gaps – Governments protect banks and telcos dominate mobile money. The real bottlenecks are systemic, not just about "access." Startups often underestimate how slow, expensive, and political it is to scale across markets. Real Problems & Better Solutions Income-Generating Fintech – Instead of just moving money, fintech should help people make money. Platforms enabling gig work, SME financing, and export-focused businesses can drive real financial inclusion. A fintech that helps informal traders access larger markets, rather than just helping them "save." Decentralized Credit & Alternative Lending – Traditional credit models don’t work in Africa. Instead: Use supply chain data, mobile behavior, and transaction flows to build more dynamic credit models. Integrate fintech into cooperative lending structures like tontines or village savings groups, where trust already exists. B2B Payments & Trade Infrastructure – Cross-border trade needs work, killing SME growth. Fix it: Build better escrow and invoice financing tools that help African businesses transact across borders securely. Verticalized Fintech in High-Impact Sectors – Fintech should power real economic activity, not just payments. Agritech fintech: Give farmers access to dynamic pricing, supply chain finance, and better insurance. Healthcare fintech: Enable embedded payments and credit for medical services, helping people afford care without predatory loans. Logistics fintech: Provide financing for truckers, warehousing solutions, and real-time supply chain support. Infrastructure-First Fintech – If power, internet, & ID verification are problems, solve those first. Payments without stable connectivity? Build USSD-based financial services. Weak credit infrastructure? Build platforms that help lenders pool risk and share credit data across borders. The era of cheap fundraising gimmicks is over. African fintech must shift from vanity metrics to real impact, solving income generation, trade inefficiencies, and credit access at scale. I'm tired of saying this, founders who build with these in mind won’t need to beg for funding; investors will come looking for them.

🔴 In Africa, Uber lost to the boda driver with a phone number you can actually call. That's not a failure of technology—it's a masterclass in what truly drives financial inclusion. In a recent FS i-Hub session with Hugo Pacheco - The Barefoot Economist and Rob Sanford, CEO of SafeBoda (mobility fintech super app), revealed something profound: in markets where 80% of workers are informal and trust is scarce, embedded finance isn't about APIs—it's about understanding people. The conversation cut through the hype: 📍 Platforms aren't just apps—they're economic infrastructure 📍 Financial wellness comes before financial growth 📍 Trust beats speed in low-trust environments ‣ Rob's insight hit home: "Traditional banks can't underwrite a boda driver—but we can, because we know their work, income patterns, and ambitions." SafeBoda doesn't just move people. It embeds insurance, vehicle loans, land credit, and same-day payouts directly into daily work. Drivers repay loans through rides, build credit histories through activity, and move from instability to asset ownership. This is what financial inclusion looks like when it's designed from the ground up—not imported from the top down. Key insights from the session: • Local platforms win because they build trust through human support, not just technology • Embedded finance works when it's lived daily, not layered on afterward  • Africa needs 12 million new jobs yearly—platforms are filling the gap that formal systems can't • Smart regulation should enable platform innovation, not strangle it Hugo brings us conversations that challenge conventional wisdom and spotlight what's actually working in African fintech—not what sounds good in boardrooms. Because the future of work and finance in Africa won't be written by those chasing global playbooks. It will be built by those who understand local realities. 👇 Read the full insights from the session  🎥 Watch the replay (link included in the article) What's your take? Can global platforms ever truly compete with locally-rooted solutions in emerging markets? #Fintech #Africa #superapp #FSiHub

🚀 Boosting Electronic Payment Adoption: Lessons from Tanzania, India, Brazil, and Algeria 🌍 Digital payments are reshaping economies, with emerging markets leading the way. Recent innovations from Tanzania, India, Brazil, and Algeria showcase transformative strategies for accelerating adoption and enhancing financial inclusion. Here’s how these nations are driving change: 🌟 4 Inspiring Strategies 1️⃣ Tanzania – Breaking Barriers with Fee Removal • By eliminating fees on card transactions, Tanzania is paving the way for a cash-lite economy, ensuring digital payments are affordable for consumers and merchants. • Takeaway: Removing financial barriers at the point of use is a simple yet powerful way to encourage adoption. 2️⃣ India – Scaling Through Subsidies • India’s UPI platform, backed by government subsidies, offers zero fees for consumers and most merchants. With over 8 billion transactions monthly, UPI has become a global benchmark for scale and accessibility. • Takeaway: Public investment in digital infrastructure can create a massive, inclusive payment ecosystem. 3️⃣ Brazil – Balancing Low Costs and Sustainability • The PIX system, centralized by Brazil’s Central Bank, provides free transactions for individuals and minimal fees (0.5%-1%) for merchants. This model ensures both affordability and system sustainability. • Takeaway: A modest fee for merchants can sustain growth while driving widespread adoption. 4️⃣ Algeria – Incentivizing Inclusion with Tax Relief • Launching DZ MOB PAY in 2025, Algeria plans to offer free payments for users and merchants. Banks will cover costs through tax offsets, aligning with the nation’s goals for modernization and financial inclusion. • Takeaway: Tax incentives can motivate private-sector participation and foster a modern, inclusive payment ecosystem. 🌍 What Emerging Economies Can Learn To build a thriving digital payment ecosystem, nations can: 1. Eliminate Cost Barriers: Ensure low or nonexistent fees for consumers and merchants. 2. Leverage Public-Private Partnerships: Share costs through subsidies or tax incentives. 3. Prioritize Infrastructure: Develop secure, interoperable systems that scale effectively while earning user trust. 4. Promote Awareness: Educate citizens, especially in underserved areas, to build trust and adoption. 🌟 The Vision for a Cash-Lite Future Affordable, inclusive, and innovative payment systems are the cornerstone of a cash-lite economy. Emerging markets can draw inspiration from Tanzania, India, Brazil, and Algeria to empower citizens, modernize financial systems, and unlock economic potential. 💡 What do you think? Could these strategies work in your country? Let’s exchange ideas and shape the future of payments together! #DigitalPayments #FinancialInclusion #EmergingMarkets #Tanzania #India #Brazil #Algeria #Innovation #CashLiteEconomy

The Greatest Untapped Financing for Africa's Future Isn't Abroad. It's Here. For decades, the narrative of Africa's development has been funded from the outside: Foreign Direct Investment, external debt, and international aid. While important, this outward gaze has overlooked the most powerful source of capital; one that is currently flowing in the wrong direction. Staggering analysis from the African Development Bank reveals a paradigm-shifting truth: Africa loses an estimated $587 billion annually to capital flight. To put that in perspective, this outflow is more than triple the amount of incoming capital. Within that staggering figure lies the potential for self-financed transformation. Imagine redirecting even a fraction of the $275 billion in shifted profits, $148 in corruption and the $90 billion in illicit financial flows. That capital represents: ▶️ The construction of thousands of schools and hospitals. ▶️ The power to light up our cities with resilient infrastructure. ▶️ The seed funding for a generation of startups that will define the 21st century. We already have proof of concept in the power of African commitment: Remittances, which consistently exceed $100 billion annually, are a resilient, counter-cyclical lifeline that already fuels our households and local economies. This demonstrates the profound willingness to invest in home. The question is, how do we channel that same collective commitment from reactive support into proactive, systemic wealth creation? The blueprint requires focused action on three fronts: Aggressively Combat Illicit Financial Flows: Strengthening transparency, governance, and cross-border collaboration to stem the hemorrhage of illegal capital. Ensure Multinationals Pay Their Fair Share: Reforming tax policies and closing loopholes that allow for profit shifting, ensuring that value created in Africa is reinvested in Africa. Build Systems that Keep Wealth Local: Developing our capital markets, fostering regional integration under AfCFTA, and creating attractive vehicles for domestic and diaspora investment. The capital we seek is not a distant promise. It is here, and it is ours to reclaim. This is the core of #Agenda2063: building #TheAfricaWeWant with our own resources and our own resolve. Let's shift the conversation from seeking funding to building financial sovereignty. The future of #AfricanDevelopment will be funded from within. What concrete steps do you believe are most critical to plug these leaks and unlock this capital? #InvestInAfrica #FutureofAfrica #Diaspora #EconomicDevelopment #FinancingAfrica Author: Capital Violence - The Economic war on African dignity.. 📖 Available worldwide on Amazon https://a.co/d/cVVv3f8. and at Nuria Bookshop, Kenya.https://https://lnkd.in/dz-Smrct Let us be the ancestors our descendants will be proud of… 🌍 By clarity, we rise.

At first, I was thrilled to see this Economist headline -- and then I thought it missed a big point. I was thrilled because the dynamism and resourcefulness of African entrepreneurs, farmers, and investors are WAY overdue for recognition. Sure, reforms are still needed, as with anywhere in the world. But Africa has long been an investment case more than the charity case so often portrayed in the media. But here's what the article missed by a mile: 𝗛𝗼𝘄 𝗰𝗮𝗻 𝘁𝗵𝗶𝘀 "𝗶𝗻𝘃𝗲𝘀𝘁𝗺𝗲𝗻𝘁" 𝗮𝗰𝘁𝘂𝗮𝗹𝗹𝘆 𝗰𝗿𝗲𝗮𝘁𝗲 𝗶̲𝗻̲𝗰̲𝗹̲𝘂̲𝘀̲𝗶̲𝘃̲𝗲̲ 𝗴𝗿𝗼𝘄𝘁𝗵? Here are the follow-up points I think this article needed -- drawn from TechnoServe's years of working on business and development in Africa and elsewhere: 𝟭) 𝗠𝗮𝗸𝗲 𝗜𝗻𝗰𝗹𝘂𝘀𝗶𝘃𝗲 𝗚𝗿𝗼𝘄𝘁𝗵 𝗚𝗼𝗼𝗱 𝗕𝘂𝘀𝗶𝗻𝗲𝘀𝘀. The article quotes Africa Finance Corporation CEO Samaila Zubairu: “Africa has a lot of potential but not enough bankable projects.” The good news? Technical assistance makes projects more bankable AND beneficial. In years of work with African #agribusinesses on shared value business models, we've seen them not only improve their investment appeal but also: -   #Farmer incomes increased $𝟱𝟬-$𝟮𝟱𝟬 annually; $𝟮𝟬𝟬-$𝟭,𝟬𝟬𝟬 at project maturity -   𝟯-𝟰𝗫 𝗥𝗢𝗜 for increased farmer income to technical assistance cost (Lots more info out there, but here's one report: https://lnkd.in/etuuPAAg) 𝟮) 𝗨𝘀𝗲 𝘁𝗵𝗲 𝗕𝘂𝘀𝗶𝗻𝗲𝘀𝘀 𝗜𝗻𝘃𝗲𝘀𝘁𝗺𝗲𝗻𝘁 𝘁𝗼 𝗕𝗼𝗼𝘀𝘁 𝗟𝗼𝗰𝗮𝗹 𝗠𝗮𝗿𝗸𝗲𝘁𝘀. The article cited energy and #mining sectors as big growth sectors -- which don't always ensure equitable local growth.   So how can they? Again, from years of work in the mining sector, across geographies: 1️⃣  Help local businesses integrate into the mining/energy value chain, then “graduate” to additional markets when strong enough 2️⃣  Use the business investment to train enterprises OUTSIDE the sector, helping diversify the local economy and create jobs 3️⃣  Engage the local ecosystem from the outset: Government, associations, educational inst'ns, etc. (More info: https://lnkd.in/emgEPbbU) Yes, hopefully, the future of Africa leans towards investment over aid. But what KIND of future that investment brings depends on actions we take now.

🌍 Africa didn’t win mobile money with apps. It won with the right technology. While the world chased fancy fintech UX… Africa quietly built a $1 TRILLION mobile money ecosystem with over 250M+ active users. Let that sink in. And the secret isn’t what most people think 👇 🚫 It wasn’t AI 🚫 It wasn’t super apps 🚫 It wasn’t even smartphones ✅ It was USSD + Agent Networks + Interoperability 🔑 What the leaders did right: 📱 USSD First, Not App First Players like Safaricom (M-Pesa) scaled using simple dial-based banking that works on any phone. No internet. No friction. Massive reach. 🏪 Agent Networks = Real Distribution Cash-in / Cash-out agents became the physical banks of Africa. Technology enabled them — but trust built the ecosystem. 🔗 APIs & Interoperability = Second Wave Growth Platforms like Onafriq and TerraPay are now connecting wallets, banks & borders. 👉 Mobile money is evolving into a financial network, not just a wallet 📊 Data = The Real Goldmine With products like M-Shwari, transaction data became credit scores. 👉 Payments brought users 👉 Lending brought profits ⚠️ Where many failed: ❌ App-only strategies in low-internet regions ❌ Ignoring agent liquidity & operations ❌ Closed-loop wallets (no interoperability) ❌ Copy-paste models from developed markets 🚀 What new players MUST learn: ✔ Distribution > Technology ✔ Solve 1 real problem (start with P2P or cash movement) ✔ Build USSD + App hybrid models ✔ Think ecosystem, not product ✔ Monetize beyond payments (credit, savings, merchant infra) 💡 Hard Truth: Africa proved that the best technology is not the most advanced — it’s the most accessible. If you're building or selling fintech in emerging markets… 👉 Don’t start with features 👉 Start with infrastructure + reach + real-world usability #Fintech #MobileMoney #Africa #DigitalPayments #FinancialInclusion #USSD #Payments #API #FintechStrategy #EmergingMarkets #Fintech #MobileMoney #AfricaFintech #DigitalPayments #FinancialInclusion #USSD #Interoperability #FintechStrategy #EmergingMarkets #DigitalInfrastructure #FutureOfFinance M-PESA Africa, MTN, Airtel Money Africa, Orange Money Africa and Middle East PalmPay

Effective women’s financial inclusion requires moving beyond one-size-fits-all financial products and grounding design in country-specific diagnostics of gender norms. Gender norms diagnostics surface the root causes of women’s financial exclusion by pinpointing which social expectations and behaviors—across clients, households, providers, and regulators—are blocking access, usage, and benefits from finance. These diagnostics map norms, identify which market actors are influenced, and reveal how “gender-neutral” rules or practices systematically default to men’s realities. This evidence helps ensure interventions target causes rather than symptoms, and turn invisible constraints into actionable insights that align product design, supervision, and policy with women’s actual needs – including tiered KYC, alternative credit assessment methodologies, provider guidance, etc. The payoff is higher uptake, safer and sustained usage, and measurable gains in women’s agency and economic empowerement. Read more about how Rwanda and Tanzania have used such diagnostics for effective action: https://lnkd.in/gbVssyS6 Antonique Koning, Sophie Mills, Gayatri Murthy 

Africa did not build one fintech model. It built several. And the differences are not accidents. They are the product of deliberate choices made under specific conditions. The mistake is to compare these models without comparing the conditions that produced them. M-PESA arrived in Kenya in 2007 into a context where formal banking was thin, mobile penetration was high, and there was no established payment infrastructure. The model fit the moment. It moved through agents, built trust through familiarity, and formalised behaviours that were already widespread, from airtime transfers to informal remittances. Nigeria built differently, because Nigeria was different. A banking sector existed. The challenge was that millions were still cut out of it. So Nigeria built in layers. The groundwork came first. Mobile money regulation in 2009. Microfinance expansion. ATM infrastructure. A regulatory architecture being built before the headline infrastructure arrived. A payment rail. NIBSS Instant Payment, launched in 2011, now one of the largest real-time payment systems globally by volume. Then tiered KYC in 2013, which allowed a name and a phone number to open a basic account, calibrating the compliance burden to actual risk rather than importing standards designed for different contexts. Then BVN in 2014, biometric identity across the banking system, addressing the long-standing absence of a unique identifier. When mobile money arrived in Nigeria, it landed on infrastructure that already existed. That is part of why it never dominated in the way it did in Kenya. The rail was already there. Neither model is simply better. Both still have significant gaps to close, and those gaps reflect the original choices. Nigeria’s unfinished work is identity completeness and rural access: the populations that the bank-led model, for all its sophistication, never fully reached. Kenya’s vulnerability is concentration: a system that flows heavily through a single operator carries a structural fragility that scale alone cannot resolve. And both countries, like every market, face the education and literacy gap that no infrastructure decision alone will close. The lesson is not which model was more innovative. It is that both were answers to specific questions asked by specific contexts. Those questions were leadership questions, about who to build for, what to prioritise, and what to accept as a temporary compromise in exchange for speed. Those choices produced today’s outcomes. Unless they are revisited deliberately, they will also define the limits of what these systems can become. #Bridgforte #FinancialSystems