MFS Africa, a South African based fintech startup has secured an additional $1.2-million as a follow-on investment, from Nairobi-based FSD Africa Investments.
FSD Africa Investments, which is the investment arm of the UK government-funded specialist development agency FSD Africa, made the announcement in London during the UK-Africa Investment Summit.
The investment arm invests in financial sector firms and funds companies that address some of the biggest challenges facing Africa’s financial markets.
Its investments focus is on three key development areas, namely access to finance, unlocking access to basic services such as affordable housing and clean energy and enhancing capital markets.
FSD Africa Investments said yesterday that the deal will help fund the company to implement its new partnership with Visa, which it added will have a “significant improvement” on last-mile consumers.
In 2018, FSD Africa Investments invested $2.2-million in MFS Africa’s Series-B capital raise which aimed to support the expansion of the company’s services and its network.
MFS Africa was founded in 2009 by CEO Dare Okoudjou.
The company — which is connected to over 180 million mobile wallets in sub-Saharan Africa — partners with banks, mobile operators and money transfer companies to transact across several platforms and operators including mobile money, e-commerce, peer-to-peer messaging platforms and money transfer.
FSD Africa Investments pointed out that MFS Africa last year became the first non-bank to receive a pan-African issuing license from Visa.
It said MFS Africa’s partnership with Visa aims to simplify remittance payments and expand access to global e-commerce in sub-Saharan Africa.
Okoudjou, commenting in the same statement, explained that his company’s vision is to enable every African mobile user to transact freely with anyone, anywhere in the world focusing on creating new digital pathways.
“This can only happen through investments and partnerships. Therefore, this investment will help MFS Africa’s capabilities to build a stronger payments service that will help strengthen Africa’s financial markets, whilst providing support for emerging small businesses across the continent,” added Okoudjou.
FSD Africa Investments also announced a $2-million investment in Dutch financial markets development company Frontclear which has 61% of its portfolio in Africa in countries that include Ghana, Kenya, Nigeria, Tanzania, Zambia and Egypt.
