In this letter, we explore:
- PalmPay and Jumia’s strategic alliance
- Access bank acquires Bidvest in $159 million deal
- South Africa’s regulator approves 248 crypto licenses
We also curated updates on startup funding in Africa, weekend reads, and several opportunities.
PalmPay and Jumia’s strategic alliance
In 2023, online transfers accounted for 45% of retail payments in Nigeria. PalmPay, a fast-growing African fintech with 30 million users, is capitalising on this trend by partnering with e-commerce giant Jumia to capture a larger share of the market.
This collaboration is designed to enhance Nigerian consumers’ online shopping experience by integrating PalmPay’s payment system directly into Jumia’s platform. The result? A more seamless and secure way for shoppers to pay.
Zoom In: The partnership positions PalmPay as a serious contender to JumiaPay, Jumia’s own fintech arm. While JumiaPay handled $192 million in payments across 8.4 million orders in 2023, PalmPay surpassed expectations with an impressive $5 billion in monthly transactions. By tapping into PalmPay’s extensive user base, Jumia could see increased order volumes, while PalmPay stands to benefit from a surge in financial transactions.
To mark the occasion, PalmPay and Jumia have launched a festive Christmas campaign. Shoppers using PalmPay on Jumia during the holiday season will enjoy exclusive rewards, making the partnership even more enticing for customers.
Access Bank acquires Bidvest in $159 million deal
Access Bank is on an acquisition streak, with its latest move being the takeover of Bidvest Bank, a key player in South Africa’s financial industry. The $159 million deal marks a major step in Access Bank’s goal to establish itself as a top pan-African bank.
With this acquisition, Access Bank strengthens its position in South Africa, one of the continent’s most advanced economies. By combining resources, the two banks aim to deliver a broader range of financial services to customers in both Nigeria and South Africa, while improving operational efficiencies and driving cost savings.
Context: This move is part of Access Bank’s aggressive growth strategy across Africa. In the past year, the bank has acquired institutions in Tanzania, Angola, and Sierra Leone, and is currently negotiating a majority stake in Afrasia Bank in Mauritius. These actions highlight Access Bank’s ambition to build a robust pan-African banking network, catering to a diverse and growing customer base across the continent.
South Africa’s regulator approves 248 crypto licenses
South Africa’s crypto industry has received a major boost as the Financial Sector Conduct Authority (FSCA) has approved 248 crypto asset service provider (CASP) licenses out of 420 applications. This marks a significant increase from April, when the FSCA approved just 75 CASP licenses and received 374 applications.
According to the FSCA, only nine applications were declined, while 106 applicants voluntarily withdrew after discussions with the regulator about the suitability of their business and operating models. Additionally, 56 applications are still under review.
This positive development signals growing recognition and integration of cryptocurrencies within South Africa’s regulatory framework.
Context: A new report by Consensys shows rising global awareness of cryptocurrency, with notable growth in Africa. Over half the population in Nigeria (84%) and South Africa (66%) report owning a crypto wallet.
The FSCA has implemented rigorous licensing requirements to ensure the integrity and security of the crypto sector. Applicants must meet specific criteria regarding operational capacity, competency, and regulatory compliance.
Alongside licensing, the Financial Intelligence Centre (FIC) has introduced Directive 9, which enforces stricter regulations on crypto transactions. This directive aims to tackle money laundering, terrorist financing, and other illicit activities by requiring crypto platforms to collect and report detailed information about their users and transactions.
💰 State of Funding in Africa
Here’s a roundup of African startups that secured funding this week:
- Nigerian fintech Billboxx has raised $1.6 million in pre-seed funding. The funding round included a mix of debt and equity investments from Norrsken Accelerator, Kaleo Ventures, 54 Collective, P2Vest, and Afrinovation Ventures.
- Eyone, a Senegalese healthtech startup providing digital health solutions, has raised $1 million to advance its AI-driven medical solutions. The funding includes contributions from the Sonatel Group through its investment fund, Véhicule d’Investissement et de Financing (VIF), and BICIS, a major Senegalese bank.
🍿 Weekend binge
- Why tech jobs are declining and where new ones are growing
- Duplo celebrates Nigeria’s leading finance professionals with the Finance Icons Awards
- Did Spotify Wrapped miss the mark this year?
- How the fear of failure is driving this product marketer
💼 Opportunities
We carefully curate open opportunities in Product & Design, Data & Engineering, and Admin & Growth every week.
Product & Design
- RevenueCat — Senior Product Designer, Remote
- Creatio — UI/UX Designer, Remote
Data & Engineering
- OneLocal — Senior DevOps, Remote
- Startup Launchcode — Backend Engineer, Remote
- Startup Launchcode — Mobile Developer, Remote
Admin & Growth
- Trafilea — Social Media Strategist, Remote
- Blockworks — Content Lead, Remote
- Condia — Sales & Partnership Associate, Hybrid
