Commerce

Chika Nwosu of PalmPay emphasises the importance of trust and transparency in achieving digital financial inclusion. (Image source: PalmPay)

PalmPay, an African-focused fintech company, has emphasised the importance of building customer trust among stakeholders in the FinTech industry across Africa, saying that trust was essential to achieving last-mile access to digital financial services in underserved communities across the continent 

Speaking at the 2024 RegTech Africa Conference in Lagos, Nigeria, held on 23 and 24 May, 2024, Chika Nwosu, managing director of PalmPay Nigeria, stated, “When we look at the digital payment space in Nigeria, sometimes we feel that we are doing well. But, the data shows that more must be done to build trust, especially from the last mile of underserved people to achieve a better result.”

Nwosu, who participated in a panel on ‘Bridging the Data Trust Gap for Last Mile Access to Digital Financial Services in Africa,’ emphasised that for digital payment platforms in the African FinTech space to thrive, transparency in their processes is vital.

“One of the reasons why we are facing this challenge is the lack of transparency. Sometimes financial service providers are not upfront with their fees, leading to hidden charges. When customers find unexpected charges after believing a transaction was free, they lose trust in the service and may avoid the financial service provider in the future,” Nwosu explained.

Nwosu offered several recommendations to build customer trust, including investing in customer care representative training, providing 24-hour customer care service, protecting customer data, and promoting financial literacy. He noted that these measures are crucial as “Most customers in the last mile are illiterate, lack formal education, and do not understand many of the products offered to them.”

He continued, “Another issue is inadequate customer care services. It can take weeks or even months for customer complaints to be resolved, and some customer care agents are not well-trained to handle these complaints. These experiences can deter customers.”

Nwosu emphasised the need for financial service providers to enhance customer care skills, including offering 24-hour services, to build trust.

Addressing data privacy concerns, he added, “What do you do with the data that you collect from people? Is their data safe with you? These questions are very important. For example, if agency banking in an underserved area does not provide good services, customers will lose trust in the entire system going forward.”

The 2024 RegTech Africa conference, with the theme ‘Harnessing Partnerships for Africa’s Prosperity - Bridging the Data Trust Gap,’ attracted top professionals across Africa and with an interest in regulation, digital financial services, compliance, technology, fraud, risk, monitoring, reporting, financial crime, cybersecurity, data management, financial inclusion and identity management.

Through this agreement, American Express Card Members will be able to use their cards in twelve new countries. (Image source: Ecobank Transnational Incorporated)

American Express and Ecobank Group, the leading pan-African financial services organisation, have announced a partnership to significantly enhance the acceptance of American Express Cards across twenty-one African countries 

As part of this agreement, American Express card Members will be able to use their cards in twelve additional countries: Burundi, Central African Republic, Gabon, Guinea-Bissau, Liberia, Malawi, Mali, Niger, São Tomé and Príncipe, Sierra Leone, The Gambia, and Togo. Moreover, the number of merchants accepting American Express Cards will increase in nine other countries where American Express is already accepted: Cape Verde, the Democratic Republic of Congo, Equatorial Guinea, Ghana, Nigeria, the Republic of Congo, Rwanda, Tanzania, and Uganda. This expansion will be implemented over the next twelve months. Ecobank will also facilitate ATM acceptance for American Express in all African countries where it operates, except Cape Verde.

This announcement was made during the 2024 Annual Meetings of the African Development Bank Group. The agreement aims to bolster the American Express global network by expanding the locations where American Express Card Members can use their Cards in Sub-Saharan Africa. Additionally, this will allow merchants to tap into a new customer base comprising American Express consumer, business, and corporate Card Members from Africa and around the world.

"We are delighted to welcome American Express to our network, reinforcing our commitment to offering innovative payments solutions for customers across Africa,” said Jeremy Awori, CEO of Ecobank Group. "This agreement will benefit American Express Card Members, providing them with greater choice and will help merchants to grow their businesses. It also highlights the scalability of Ecobank’s unrivalled borderless banking ecosystem and network across Africa."

Mohammed Badi, president of Global Network Services at American Express, commented: “This agreement with Ecobank is a major milestone for American Express acceptance across Africa as it will expand our presence in sub-Saharan Africa to 42 countries from 30 at present. With Ecobank’s support, we look forward to providing merchants in these countries access to higher-spending American Express Card Members both in Africa and from around the world.”

Orange Ventures and Digital Africa enhance support for African startups through the Orange Digital Center network, boosting investments and fostering innovation. (Image source: Adobe Stock)

At Vivatech, a significant partnership was established between Fayçal Adlouni of Orange Ventures and Grégoire de Padirac from Digital Africa, aiming to enhance the growth and support of African startups within the Orange Digital Centers (ODC) network

Asma Ennaifer, executive director of CSR, communications and the Orange Digital Center program for Orange Africa and the Middle East, welcomed this collaboration, which builds upon the strategic alliance formed with Digital Africa in June 2023 to boost startup financing and assistance.

The alliance underscores the dedication of both Orange Ventures and Digital Africa to intensify their investment in startups nurtured by the ODC network. The Fuzé initiative now allows for the doubling of investments by either party, facilitated by a collaborative evaluation of applications and potential co-financing opportunities. The Orange Digital Center, present in 17 African and Middle Eastern countries and 8 European nations, consolidates various complimentary programs—from digital education for youth to startup incubation, acceleration, and leader support—under one roof, fostering entrepreneurship and innovation across the region.

In its inaugural year, the Fuzé program by Digital Africa granted up to €50,000 to five startups within the ODC network. Among these, three are Cameroonian—Clinihome in Healthtech, Koree in Fintech, and Colorfol in cultural and creative sectors—and two are Senegalese—Tolbi in Agritech and Proboutik in Fintech. This financial support is poised to significantly bolster their operations.

The involvement of Orange Ventures, the venture capital branch of the Orange Group, marks a pivotal advancement in the shared goal of propelling startup growth. This joint support framework for African entrepreneurs seeking funding was met with enthusiasm and a unified commitment to success by representatives from Orange, OMEA, and Digital Africa during the partnership signing event.

Fayçal Adlouni, managing partner, Orange Ventures,remarked, “The Orange Group is fully committed to nurturing the future champions of the technology scene in Africa and the Middle East. This arrangement, involving Orange Middle East and Africa, Orange Ventures and Digital Africa will collectively enable us to concentrate our resources to create an environment conducive to the success of startups in Africa and the Middle East.”

Asma Ennaifer, executive director of CSR, Communications and the Orange Digital Center program for Orange Middle East and Africa, added, “Orange Digital Centers are true catalysts for innovation, where ideas take shape and dreams become reality. By joining forces with Orange Ventures and Digital Africa, we're giving African startups the means to thrive and make their mark in a rapidly expanding digital world.”

Grégoire de Padirac, CEO of Digital Africa, said: “I am delighted by this partnership with Orange, with whom we share the same commitment to supporting African entrepreneurs from the earliest stages of maturity by providing them with a comprehensive range of financing and support services.”

Paratus partners with BSO for groundbreaking Paratus Express Route, offering ultra-fast 123ms latency from Johannesburg to Europe, transforming Africa's digital. (Image source: Paratus)

Paratus Group, a prominent telecommunications entity in Africa, has recently inked a deal with BSO, a trailblaser in infrastructure and connectivity for major financial corporations globally, marking BSO as the inaugural client for the innovative Paratus Express Route 

This state-of-the-art fiber optic pathway is celebrated for its unprecedented speed, linking Johannesburg to Europe with a remarkable latency of merely 123 milliseconds.

BSO, renowned for its ultra-fast connectivity services catering to sectors where time is of the essence, now boasts an augmented portfolio thanks to the Paratus Express Route. “We are excited – not only to be the first customer on the Paratus Express Route but also because this reinforces our promise of providing the fastest and most reliable connectivity solutions across the globe,” expressed Michael Ourabah, CEO of BSO.

This strategic and groundbreaking partnership is pivotal, offering the most expedited latency route from Johannesburg to London, catering to the critical needs of enterprises.

Spanning from Johannesburg to Swakopmund and passing through Botswana, the Paratus Express Route taps into the Equiano subsea cable system, ensuring a seamless connection to Lisbon, London, and broader Europe. Paratus’ significant investment in a comprehensive and varied fiber network solidifies a premier route that promises exceptional performance and dependability for network service providers and their corporate clientele.

“Our partnership with BSO underscores the value of the Paratus Express Route for network service providers and their financial services clients. By combining our local expertise with global reach, we are uniquely positioned to meet the critical connectivity demands of the financial industry. Our express route also marks a significant milestone on our journey to transform Africa’s digital landscape and to support the growth of the financial services sector,” stated Martin Cox, Chief Commercial Officer at Paratus Group.

The Paratus Express Route not only delivers unparalleled velocity and efficiency but also serves as an essential alternative conduit for network operators, diminishing the repercussions of possible fiber disruptions between Johannesburg and Cape Town. As the Equiano Subsea Cable’s landing associate in Namibia, Paratus ensures robust and varied network solutions for its customers.