After it entered the Nigerian market last October, MFS Africa announced major fundraising to support its expansion across the continent. The fintech seeks to enter new markets and strengthen its staff.

The digital payments platform MFS Africa announced it has raised $100 million in a Series C round to pursue its activity in the region; $70 million of the amount was raised in the form of an equity investment and the remaining $30 million as debt.

Last year, the fintech expanded activities in Côte d'Ivoire, Uganda, DRC and Kenya. Now it intends to open new offices "in key African markets as well as in China and the United States". The company also plans to recruit within and outside the continent to strengthen its staff, strengthen its cash flow and finance its investments in fintech and payment companies in the region.

Overall, MFS Africa has raised a little more than $95 million in equity financing since it started operations in 2009. In addition to previous shareholders who have renewed their investments, new investors such as CommerzVentures, Allan Gray Ventures, Endeavor Catalyst, and Endeavor Harvest participated in this transaction. The operation is CommerzVentures’ first commitment in Africa.

“This round of funding marks the beginning of the next phase in our growth […] This new fundraising round further demonstrates our commitment and the scale of our ambitions. For our clients across Africa and beyond, this is also a validation of the choice they have made to partner with us in building a network that makes instant cross-border payments as simple as making a phone call. We look forward to continuing to work with them to expand and deepen that network in the years to come,” said CEO Dare Okoudjou (pictured).

The investment, co-led by AfricInvest Five, Goodwell Investments, and Lun Partners Group, comes after the acquisition last October of the Nigerian fintech Baxi. Through this transaction, MFS Africa entered the market with the largest number of SMEs on the continent.

MFS Africa claims more than 320 million mobile accounts in more than 35 African countries. According to the company, sub-Saharan Africa represents the most developed market for mobile payments, with about two-thirds of global transactions made via mobile last year.

Chamberline Moko

Since the coup in September, Guinea has engaged in a transition process under pressure from the ECOWAS. At the end of a summit held on November 7, the institution decided to maintain sanctions against the country and appoint Mohamed Ibn Chambas as its special envoy.

In a letter sent this week to Ghanaian President Nana Akuffo-Addo, current chairman of ECOWAS, Colonel Mamady Doumbouya (pictured) challenged the decision.

"I have taken cognizance of the conclusions and decisions of the 3rd Extraordinary Summit of the Conference of Heads of State and Government of ECOWAS held on 7 November 2021 in Accra, on the situation in the Republic of Guinea and the Republic of Mali," Mamady Doumbouya wrote. However, "the appointment of a special envoy seems neither timely nor urgent insofar as no internal crisis of a nature to compromise the normal course of the transition is observed,” he added.

As a reminder, ECOWAS decided to maintain the sanctions adopted against the country after the coup that ousted President Alpha Conde on September 5. Although they noted the adoption of a transitional charter, the appointment of a civilian prime minister, and the formation of a transitional government, the ECOWAS heads of state called on Guinean authorities to "rapidly submit a detailed timetable of activities to be undertaken within the framework of the transition, to ensure the holding of elections.”

ECOWAS has recently been criticized for its management of the crisis in Mali and Guinea. The institution is accused of serving the "leaders" instead of the "people. For the time being, the Guinean transitional authorities say they want to continue to "maintain constant dialog and close cooperation with ECOWAS" throughout the transition period.

"The establishment of the transition is proceeding as planned, in a peaceful climate and perfect symbiosis with the country's living forces," reassured Mamady Doumbouya. "We remain open to receive ad hoc missions from the ECOWAS Commission, such as the one that recently stayed in Conakry to work with the government on technical support for a return to normal constitutional order,” he said.

Moutiou Adjibi Nourou

The Ivorian government announced yesterday it has revised its 2021 state budget upward. From $14.8 billion, the budget is now $16 billion.

According to authorities, this decision was necessary given “the impacts that Covid-19 has had and continues to have on the economy, and the need to improve the living environment and well-being of the population.”

While the poverty rate in Côte d'Ivoire has fallen from 44.4% in 2015 to 39.5 in 2018, according to the World Bank, it remains high. The institution urged the country to strengthen its development strategy for a better distribution of wealth. During a meeting, last month, the President of the World Bank Group, David Malpass, and the Ivorian Prime Minister, Patrick Achi, discussed issues relating to economic diversification, the need for land reforms, improving access to financing, investment in human capital, and the importance of peace and stability in the Sahel region.

For next year, Côte d'Ivoire is eyeing a $17.6 billion budget. The amount will cover 30 allocations and 150 programs.

Dorcas Loba (intern)