In a decisive move to bolster Africa’s fintech ecosystem, Visa has announced investments in four fintech startups as part of its Visa Africa Fintech Accelerator program. This initiative aligns with Visa’s strategic commitment to advancing digital innovation, financial inclusion, and economic growth across the continent. The selected companies include Ghana’s Oze, Kenya’s Workpay, Nigeria’s OkHi, and ORDA, which operates in Nigeria, Kenya, and South Africa. Each of these startups addresses unique challenges in Africa’s financial landscape, contributing to an evolving digital economy.

Visa’s Senior Vice President of Products, Partnerships, and Digital Solutions remarked on the investments, noting, “These investments mark a significant step in scaling up financial inclusion across the continent. We are proud to support these start-ups in their journey to shape the future of digital payments in Africa.”

Visa’s Growing Footprint in Africa’s Fintech Landscape

Visa’s investment in these startups is part of a broader strategy that recognizes Africa’s rapid digital transformation and the unique opportunities for financial inclusion across the continent. The Visa Africa Fintech Accelerator, launched in 2023, provides a robust platform for fintech startups, offering three months of mentorship, business training, funding, and strategic partnership opportunities. Since its inception, 45 startups from various African countries have participated, gaining the tools and support necessary to drive growth and innovation.

Selected Startups and Their Impact on Africa’s Financial Sector

The four startups chosen by Visa represent a cross-section of Africa’s most pressing financial needs, including credit access for small and medium enterprises (SMEs), digital identity solutions, and efficient payment systems.

1. Oze (Ghana)

Oze, a Ghana-based fintech, has emerged as a key player in helping SMEs improve financial literacy and access to credit. The platform provides digital tools for record-keeping, credit assessment, and business analytics, enabling small businesses to gain valuable insights into their financial health. By collecting and analyzing data, Oze allows SMEs to build credit histories, making it easier for them to access loans and other financial services. Visa’s investment is expected to support Oze in expanding its operations and developing more sophisticated tools to reach underserved markets across West Africa.

2. Workpay (Kenya)

Kenya’s Workpay offers payroll management and Human Resources (HR) solutions tailored to African businesses. Its digital platform supports remote and on-site employee management, payroll automation, and compliance with local tax and labor regulations. This investment from Visa enables Workpay to enhance its technology infrastructure, improve security features, and expand into new African markets. With the rise of remote work and cross-border employment, Workpay’s platform plays an essential role in supporting businesses’ operational efficiency, ensuring employees are paid accurately and on time regardless of location.

3. OkHi (Nigeria)

OkHi, based in Nigeria, addresses a crucial need in digital identity verification. Many African countries struggle with formal address systems, complicating processes such as KYC (Know Your Customer) verification. OkHi offers a digital address verification solution that helps businesses and individuals create accurate, GPS-enabled addresses. This innovative approach has the potential to streamline financial transactions, improve logistics for e-commerce, and support efficient delivery services. With Visa’s backing, OkHi can continue to refine its technology, making digital identity verification more accessible to millions across Nigeria and beyond.

4. ORDA (Multi-Country)

ORDA, operating in Nigeria, Kenya, and South Africa, provides digital tools for the restaurant and hospitality industries. Its platform simplifies inventory management, order processing, and customer engagement for restaurants and food vendors. ORDA’s solution allows small businesses to scale operations efficiently and manage resources effectively. By investing in ORDA, Visa supports the digitalization of one of Africa’s most vibrant sectors, helping food and hospitality businesses thrive in a competitive market.

The Role of the Visa Africa Fintech Accelerator

The Visa Africa Fintech Accelerator is part of Visa’s long-term strategy to support Africa’s digital transformation. This accelerator program not only offers financial investment but also equips startups with essential skills, including risk management, customer engagement, and data analytics. Visa’s mentorship emphasizes financial literacy, scalability, and sustainable business models. Startups gain access to Visa’s extensive partner network, which can open doors to potential collaborations with financial institutions, government agencies, and international businesses.

Visa’s active role in Africa’s fintech industry reflects its vision of integrating Africa into the global digital economy. With an increasing number of African consumers and businesses embracing digital payments, the accelerator program plays a pivotal role in shaping the future of financial transactions on the continent.

Financial Inclusion and Economic Growth in Africa

Africa’s population, expected to exceed 2.5 billion by 2050, is young, tech-savvy, and increasingly receptive to digital solutions. Despite these favorable demographics, nearly 57% of Africa’s adult population remains unbanked, according to the World Bank. The Visa Africa Fintech Accelerator addresses this gap by empowering fintechs to create solutions that make financial services more accessible and affordable. By promoting financial inclusion, Visa and its partner startups contribute to economic growth, job creation, and poverty alleviation across Africa.

The shift to digital payments has already shown positive effects on Africa’s economy, enabling micro and small businesses to participate in the digital economy and gain access to markets beyond their local communities. The selected startups demonstrate how digital innovation can serve diverse sectors—from SMEs needing credit solutions to individuals requiring identity verification for services like healthcare and banking.

Africa’s Fintech Sector: Growth and Challenges

Africa’s fintech sector has seen explosive growth, with investment in African fintechs reaching over $3 billion in 2022, according to data from Africa Fintech Summit. Fintechs are attracting international interest due to Africa’s unique market opportunities and the success of solutions like mobile money, which revolutionized payments in countries like Kenya with M-Pesa. Despite its growth, the fintech sector faces challenges, including regulatory hurdles, limited funding access, and inadequate infrastructure in some regions.

Visa’s support of African fintechs reflects a growing trend among global financial companies to partner with African startups rather than solely offering traditional banking services. These collaborations recognize the need for locally developed solutions that resonate with African consumers and businesses. Visa’s strategic investments not only drive financial inclusion but also set an example for other international companies looking to make a meaningful impact in Africa’s digital economy.

Visa’s Broader Strategy for Africa

Visa has made substantial investments in Africa over the past decade, including partnerships with local banks, digital wallet providers, and government agencies. These efforts align with Visa’s objective to create a seamless global payment network that includes Africa’s fast-growing digital economy. Beyond the fintech accelerator, Visa has committed to expanding its presence in Africa through initiatives like partnerships with regional fintechs and developing innovative payment solutions tailored to African markets.

In October 2024, Visa launched the Digital Financial Inclusion Initiative, aimed at providing digital literacy training to underserved communities in Africa. This program, combined with the accelerator, demonstrates Visa’s holistic approach to fostering an inclusive financial ecosystem. Visa’s proactive role in Africa is part of a larger shift by global companies to engage in Africa’s economic future, recognizing that a digitally connected Africa contributes positively to the global economy.

The Future of Digital Payments in Africa

The digital payments sector in Africa is poised for continued growth, driven by a young population, increasing smartphone penetration, and rising internet access. The GSMA projects that by 2025, there will be 614 million unique mobile subscribers in sub-Saharan Africa, representing 50% of the region’s population. As connectivity increases, digital payment solutions become more relevant, providing financial access to people previously excluded from traditional banking.

Visa’s investment in startups like Workpay, OkHi, and Oze indicates a forward-thinking approach that anticipates Africa’s future as a cashless society. Through digital wallets, mobile payments, and digital identity solutions, these startups—and others in the accelerator program—are transforming how Africans engage with financial services. Visa’s role in nurturing these innovators highlights a commitment to long-term growth, aligning with Africa’s vision of financial inclusion for all.

Conclusion: Visa’s Lasting Impact on Africa’s Fintech Ecosystem

Visa’s investment in African startups represents more than a financial commitment; it signifies a belief in Africa’s potential as a leader in digital innovation. By supporting local entrepreneurs and nurturing the continent’s fintech ecosystem, Visa is helping to bridge the financial inclusion gap and empower millions of Africans. The accelerator program is a critical component of this vision, offering the tools, knowledge, and capital that startups need to thrive in a competitive industry.

As Africa’s digital economy continues to evolve, Visa’s investments will likely yield lasting benefits not only for the selected startups but also for African consumers, businesses, and communities. Through strategic partnerships and targeted investments, Visa is playing a crucial role in shaping a financially inclusive Africa—one where digital payments, accessible credit, and identity verification are no longer barriers but bridges to economic opportunity.

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Photo source: Google

By: Montel Kamau

Serrari Financial Analyst

6th November, 2024