Frontier Fintech GPS #24 - March 19th 2025
South Africa pushing for on-shore classification of Crypto, M-Kopa and Turaco insure 1m Kenyans, Nilos expands into Francophone West Africa and other stories that matter
Illustration by Mary Mogoi - Website
Hi All, Welcome to the 24th edition of Frontier Fintech GPS where I provide key insights on the top global Fintech news items that matter to you. This newsletter will be arriving in your inboxes every Wednesday morning. The idea behind Frontier Fintech GPS is to help you navigate the endless stream of Fintech news and get smart about global Fintech as it applies to Africa. To those who are yet to subscribe, hit the subscribe button below and share with your colleagues and friends. 🚀
Reach out at samora@frontierfintech.io to discuss sponsorships, partner-pieces and advisory work.
Built for Local Realities
Scaling a fintech or financial institution in Africa means navigating unique regulatory, operational, and market-specific challenges. Many global core banking solutions—built with mature markets in mind—lack the flexibility to accommodate local realities. A prime example? Loan fee structures. In many African markets, lenders need the ability to amortize fees over the length of a loan—a feature that most global core banking platforms don’t natively support. Fintechs and banks are forced to rely on cumbersome workarounds or build expensive custom solutions just to meet everyday business needs.
Oradian solves this by offering a core banking system designed specifically for dynamic markets. Our configurable platform adapts to local requirements, allowing financial institutions to operate seamlessly without compromise. From flexible fee structures to regulatory-ready workflows, Oradian provides the infrastructure you need to scale efficiently. Stop forcing global solutions to fit local challenges. Discover how Fairmoney uses Oradian to power its advanced lending business;
Last week, we launched the first-ever Frontier Fintech Collective.
Bringing together some of the brightest minds in African fintech, our goal was simple: create a space for deep insights, real connections, and meaningful conversations.
📸 Event Highlights
💡 Why We Started This
For years, Frontier Fintech has been about insights—breaking down fintech trends and uncovering what drives success on the continent. But insights alone aren’t enough. Fintech moves forward through real connections.
That’s why we launched this series.
🔥 Key Takeaways from the Fireside Chat
I shared my journey—from an economics blog in university to asset management, banking, and fintech. Writing for Business Daily reinforced the power of media, while building Sote highlighted the challenges of execution and collaboration in fintech. These experiences led to the rebirth of Frontier Fintech.
🚀 Introducing Frontier Fintech 2.0
🔹 Insights – The newsletter and the new F-Squared Podcast for peer-level fintech discussions.
Reach out to sponsor the Podcast.
🔹 Connections – Curated in-person events for fintech leaders, banks, and investors.
🔹 Advisory & Collaboration – Research, prototyping, and structured partnerships on key fintech themes.
⚡ What’s Next?
✔️ Support Frontier Fintech – Upgrade to a paid subscription.
✔️ Join our next event – Bigger and better things ahead!
🙌 Shoutouts
🎨 Mary Mogoi – Frontier Fintech’s Illustrator-in-Chief.
👏 Wangui Njoroge – The force behind making this event a success. A born COO and doer.
🎙️ Terry Muikamba-Gitonga – Leading our upcoming podcast and a media maverick.
🎤 Nimo Kanina – An outstanding moderator and natural born conversationalist.
Thank you to everyone who attended. If you missed it, we can’t wait to host you at the next one!
We’re looking for sponsors for our next one so kindly reach out so that we can curate impactful events together.
🇿🇦 South Africa Urges Regulators to Classify Crypto as Onshore Assets
South Africa’s National Treasury has proposed classifying cryptocurrencies as onshore financial assets, aiming to bring them under stricter regulatory oversight. The move, outlined in the 2025 budget review, would require crypto transactions to comply with existing foreign exchange controls. This could impact South African investors who use crypto for offshore transfers, as they may face additional reporting and tax obligations. The proposal aligns with the government’s broader efforts to integrate digital assets into the formal financial system while mitigating risks related to capital flight and illicit financial activities.
I wrote a couple of weeks back about the regulatory risks that loom large for Crypto in Africa and stablecoins in particular. Rwanda recently launched draft VASP regulations joining Nigeria, South Africa, Kenya and Namibia in different stages of their VASP journeys. One of the issues that arose form Rwanda’s regulations is that they were based on MiCa and therefore foresaw local custody of USD stablecoins for instance. In South Africa the fight is to have them registered as on-shore assets and therefore obviate the restrictions placed on off-shore asset ownership by S. Africans. I’ve always argued that regulators are smarter than they let on and if I were a betting man I’d place my money on the regulators in SA finally classifying them as off-shore assets. In my article, I argued that regulators and governments at large have very clever ways of limiting crypto adoption and we’re seeing some of the tricks at work.
🇰🇪 M-KOPA and Turaco Insurance Provide Free Coverage to Over 1 Million Kenyans
M-KOPA, a leading asset financing platform, has partnered with Turaco Insurance to offer free hospital cash insurance to over 1 million customers in Kenya. The initiative, which covers hospitalization costs, aims to enhance financial resilience for low-income households. Customers who consistently make payments for M-KOPA's solar energy and smartphone financing products qualify for the coverage at no extra cost. This partnership aligns with M-KOPA’s mission to improve financial inclusion while expanding access to essential services like healthcare.
News came out recently that M-Kopa financed 20% of the smartphones in Kenya. I’ve always argued that this is a massive TAM because smartphone demand is driven by a need to participate in the modern economy. With such ubiquity, M-Kopa is well placed to be a key player in driving key fintech themes such as embedded lending and insuretech. The tie up with Turaco makes sense because just like Equity Bank realised with Equity Afya, health outcomes are key drivers of loan defaults. Availing medical insurance is therefore critical to driving sustainable repayment behaviour. It’s a valid expense as it reduces the overall cost of risk for the business. One of the things that comes up is why traditional insurers can’t partner with the likes of M-Kopa to avail similar products.
🌍 Nilos Expands into West Africa to Revolutionize Cross-Border Payments
Global B2B payment platform Nilos has expanded into West Africa, aiming to streamline cross-border transactions for businesses in the region. The company provides a unified platform that integrates multi-currency wallets, compliance tools, and real-time payment tracking, addressing key challenges faced by businesses operating across multiple countries. Nilos’ entry into West Africa aligns with its broader mission to enhance financial transparency and efficiency, supporting companies with faster and more cost-effective international transactions. The expansion is expected to benefit fintechs, e-commerce businesses, and SMEs looking to scale across borders.
Nilos co-founder Eytan is a key opinion shaper in LinkedIn on stablecoins. Nilos originally was based in France and was offering crypto liquidity solutions but the market simply didn’t exist. Eytan realised that stablecoins and crypto have a larger need in Africa as some of the businesses he was dealing with in France kept highlighting how difficult it was to get payments from Africa. Nilos is building a Verto like business but powered exclusively by stablecoins. This means pay-outs, off-shore accounts and financial tooling. Stablecoin volumes in Africa particularly for B2B payments are growing at an exponential rate and Fintech enables businesses like Nilos to offer an off-shore banking suite that 20 years ago was only available to MNCs and extremely large local corporates. Its a competitive space and winning will be a function of reliability, world class treasury capabilities and strong global banking relationships.
🇲🇾 Alipay Drives Growth for Malaysian SMEs Through DuitNow QR Payments
Alipay has strengthened its role in Malaysia’s digital payment ecosystem by enabling Malaysian SMEs to process over 80% of inbound QR payments via the DuitNow QR network. This integration allows businesses to accept payments from international tourists and Chinese visitors seamlessly, boosting cross-border transactions. The initiative aligns with Malaysia’s cashless economy drive and aims to enhance financial inclusion for small businesses by providing efficient and secure payment solutions. Through its partnership with local financial institutions, Alipay continues to expand its digital footprint, supporting SMEs in accessing new markets and revenue opportunities.
I wrote sometime back about Alipay+ as a key trend to watch in cross-border payments. Alipay+’s launch coincided with their botched IPO, but importantly Alipay+ dovetails perfectly with China’s digital silk road initiatives. Alipay+ is like Visa but for digital wallets. The fact that in Malaysia they are working with the National digital payment system gives a clue about how trade payments between Africa and China for lower value goods may look like in a few years time. Alipay+ will likely integrate with the likes of Safaricom M-Pesa, Nibss, Ghipss and Payshap to power merchant payments from China and eventually to China riding on the digital Yuan.
🇿🇦 MTN to Spin Off Fintech Units as Mastercard Invests in Digital Expansion
MTN Group plans to spin off its fintech business, aiming to unlock more value and attract strategic investments. This move comes as Mastercard increases its stake in MTN’s fintech operations to support its digital payments expansion across Africa. MTN’s fintech unit, which includes mobile money and digital financial services, has seen rapid growth, processing billions in transactions annually. The spin-off is expected to enhance operational efficiency, drive financial inclusion, and position MTN as a major player in Africa’s evolving digital finance landscape.
In 2021 Airtel Africa spun off its MoMo business at a valuation of US$ 2.65 billion raising US$ 500 million in the process. The spin-off was justified as an enabler for greater agility for the MoMo business as a stand-alone entity. MTN is now valued at double the valuation. MTN’s full year Fintech revenues stood at approximately US$ 1.2 billion compared to Airtel whose annualised revenues for FY 2025 are approximately US$ 920 million (HY revenues of US$ 466m). Moreover Airtel’s Fintech EBITDA stood at 52% compared to MTN’s which was given as the top end of the 30% range. Investors must be assigning value to MTN’s brand and the fact that it has a footprint in a major market like South Africa. Ultimately the evidence of greater agility as a stand-alone business hasn’t been proven out. It could be that investors think that having the Fintech as a stand-alone unit would enable a higher valuation than if its subsumed within the larger telco.
🌍 Helios V Fund Secures $75M from IFC to Boost African Investments
Helios Investment Partners has received a $75 million commitment from the International Finance Corporation (IFC) for its Helios V Fund, which focuses on investing in high-growth businesses across Africa. The fund targets sectors such as financial services, fintech, telecommunications, and infrastructure, aiming to drive economic development and job creation. This investment aligns with IFC’s strategy to support private equity in Africa, providing much-needed capital for businesses that can scale and enhance financial inclusion across the continent.
Helios is one of the African businesses that I respect the most. If I were to model Frontier Fintech against an institution in Africa it would likely be Helios. For one, they have arguably the highest concentration of smarts and entrepreneurial acumen from a personnel perspective. Secondly, Helios is a paragon of staying power having been in the market since the early 2000s. Their new fund which is anticipated to raise US$ 750 million proves that value compounds and the winners accrue the bulk of the gains. This follows on from a US$ 75m commitment from EIB and they expect to invest 50-80m US$ per transaction in winning companies in Pan-African Fintech. They’ve invested in companies like Interswitch, Fawry and recently M2P Fintech. Payments, embedded finance and digital banking will be themes to watch.
🇳🇬 Sycamore Expands into Wealth Management with SEC Fund Manager License
Nigerian fintech Sycamore has secured a Fund Manager License from the Securities and Exchange Commission (SEC), marking its expansion into wealth management. Previously focused on lending solutions, Sycamore now aims to offer investment products that cater to a broader financial market, including individuals and businesses. The move aligns with the company's vision of enhancing financial inclusion in Nigeria by providing accessible, regulated investment opportunities. This expansion positions Sycamore to compete with established asset managers while leveraging its fintech expertise to offer seamless digital wealth management solutions.
I’ve admired the Nigerian wealthtech space from a far with the likes of Bamboo, Risevest, Piggyvest and Cowrywise. Whilst there’s chatter around their breakout capabilities in terms of achieving Moniepoint like outcomes, their staying power has been impressive. Moreover, for the type of product i.e. wealth and investments, building trust takes much longer particularly in a market like Nigeria. I’m long-term bullish about these companies for two reasons. The first is that across Africa almost all financial services providers that used tech to serve the lower end of the market always found demand amongst wealthier clientele. Additionally, the great global wealth transfer from Boomers to Millenials will provide a tailwind to wealthtechs globally. I also recently wrote about Saccos in Kenya whose core value was that it enabled Kenyans to leverage their savings to get loans. This value proposition suits wealthtechs given that they hold people’s savings. A simple product could be a credit card whose limits are based on your savings.
🇩🇪 MoonPay Acquires German Stablecoin Payment Startup Iron
Crypto payments firm MoonPay has acquired Iron, a German startup specializing in stablecoin payment infrastructure. The acquisition is part of MoonPay’s strategy to expand its Web3 payments capabilities, particularly in Europe and emerging markets. Iron’s platform enables businesses to accept and process stablecoin payments seamlessly, aligning with MoonPay’s mission to bridge traditional finance and crypto payments. This deal strengthens MoonPay’s position in the growing stablecoin adoption trend, as more businesses seek faster, borderless, and cost-effective payment solutions powered by blockchain technology.
One thing that is emerging in the stablecoin space is that its important to build comprehensive Fintech capabilities on top of stablecoin infrastructure. Stripe’s acquisition of Bridge and Moonpay’s acquisition of Iron show that large players want to provide a comprehensive suite of products from payments acceptance, cross-border payments, wallets and other similar capabilities. Ultimately owning the customer journey and the underlying tooling will be critical to build a sustainable moat rather than simply being a broker of different stablecoins. In the long-term, web3 finance players will have similar economics to their web2 counterparts and in stablecoins it makes sense to build a Visa or Mastercard type operation.
🇿🇦 South Africa to Remove Luxury Tax on Smartphones to Boost Digital Inclusion
The South African government has announced plans to eliminate the luxury tax on smartphones, aiming to increase digital accessibility and bridge the digital divide. Currently, smartphones are subject to a luxury tax, making them less affordable for lower-income populations. By scrapping the tax, the government hopes to enhance internet penetration, promote financial inclusion, and support the growth of digital services like mobile banking and fintech solutions. The policy shift aligns with broader efforts to expand connectivity, particularly in rural and underserved communities, reinforcing South Africa’s commitment to digital transformation.
South Africa has traditionally placed an ad valorem tax of 9% on smartphones having classified them as a luxury good. This move should at least make smartphones cheaper making a US$ 200 phone US$ 17 cheaper. In the early 2000s, the Kenyan government removed VAT on laptops and this policy move coupled with the growth of Fiber connectivity is a key reason for the growth of Kenya’s tech industry. Fiscal policy plays a critical role in digital enablement and therefore this is a welcome move. Smartphones are a portal to productivity in the 21st century and every effort should be made to drive their ubiquity.
🌍 Tether and Circle Face Competition from TradFi in Stablecoin Market Major banks are launching their own stablecoins, challenging the dominance of Tether (USDT) and Circle (USDC) as global regulations, including anticipated U.S. legislation in 2026 and the EU's MiCA framework, tighten. Tether holds 65% and Circle 25% of the $220 billion stablecoin market, according to PitchBook, but their centralized control raises risks amid growing regulatory scrutiny. Tether has exited the European market to avoid MiCA compliance, while stablecoin transaction volumes reached $15.6 trillion in 2024, outpacing Visa and Mastercard in value, though not in transaction count. With traditional finance (TradFi) capitalizing on rising demand, the stablecoin sector faces a potential shift in power.
The Genius Act creates a predictable regulatory framework for stablecoin issuers that should enable US banks to launch their own stablecoins. If you think of stablecoins as replacing the correspondent banking system and distribution as a key competitive enabler, then banks issuing their own stablecoins makes sense. This will drive widespread adoption of stablecoins particularly by emerging market incumbents. Imagine Safaricom enabling stablecoin wallets and global pay-outs, this is more likely if BNY Mellon is on the other side of the trade than Circle or Tether. Currently Tether is the most profitable company per employee in the world and banks must be licking their lips over that business model. Such arbitrage opportunities rarely last forever in business.