MAY 10, 2022
3 min Read
Investor Updates: May 10 2022
🇳🇬ARM Labs partners Techstars to support fintechs in Nigeria
Image from TechCrunch
- ARM Labs, a Lagos-based innovation program-focused firm, in conjunction with Techstars, is set to help fintech startups fast track their growth and drive innovation in the country.
- To kickstart the program, the firm recently launched the ARM Labs Techstars Accelerator program in Lagos, one of the fastest-growing ecosystems worldwide and the number one African startup city as of 2021.
- The ARM Labs Lagos Techstars Accelerator will receive applications from June to August. Up to 12 startups will be selected on an annual basis to participate in the program and benefit from up to $120,000 in funding.
As Africa catches up with the developed world in terms of technological progress, accelerators and investment firms help to bridge this gap by providing crucial access to capital and mentorship to startups. More so, Africa’s huge unbanked, young population and cash-dominated economies offer strong opportunities for fintech and fintech-enabled companies who continue to attract the most funding in the region.
💰Africa accounts for 70% of the world’s $1trn mobile money market
Image from GSMA/Quartz
- Africa now accounts for 70% of the world’s $1 trillion mobile money value after mobile money transactions on the continent rose 39% to $701.4 billion in 2021 from $495 billion in 2020.
- GSMA’s figures released recently show the volume of mobile money transactions jumped 23% to 36.7 billion in 2021 from 27.5 billion in 2020.
- In the review period, registered mobile wallets in Africa topped 621 million, a 17% increase from 562 million in 2020. There are now over 184 million active wallets on the continent compared to 161 million just over a year before.
Africa has in recent years seen exponential growth in digital financial services, driven by increasing mobile penetration. More than half of Africans remain without formal bank accounts but most own mobile phones through which they access basic financial services. The growth of mobile money, tracked by GSMA, indicates that the future of banking on the continent is mobile, with plenty of opportunities for mobile-focused fintech ventures and investors backing them.
🇰🇪Kenya’s economy records decade-best growth in 2021
Image from google
- Kenya last year experienced the fastest economic growth in 11 years, according to Treasury Secretary Ukur Yatani.
- East Africa’s biggest economy expanded by 7.5% in 2021 and growth would have accelerated to 9% in 2022 were it not for challenges such as food and fuel inflation, scarcity of grains especially wheat, and the weakening of the shilling against the dollar.
- Kenya now expects slower expansion this year due to the spillover effects of Russia’s invasion of Ukraine.
Kenya’s official growth figures for 2021 place the country among the fastest-growing in Africa and mark a strong recovery from the previous year, when GDP fell by -3%. Furthermore, the growth reflects the resilience of African economies at a time when the impact of Covid-19 is still being felt in emerging economies globally. For this year, however, the International Monetary Fund sees Kenya’s growth slowing to 5.7% in 2022 while the Central Bank of Kenya projects an expansion of 5.9%, after the strong rebound.