Global Courant
Here are three big stories from the African business landscape that you (probably) didn’t miss, but should keep in mind this week:
CBN’s new transaction limits
Last week, the Central Bank of Nigeria (CBN) introduced new transaction limits for contactless payments in an attempt to revolutionize the payments landscape in the country. Under the new regulations, contactless payments are limited to a maximum of ₦15,000 per day, with a cumulative limit of ₦50,000. This prudent approach ensures that even in the unfortunate event of unauthorized access to your card, potential losses are minimised. However, larger purchases can be made contactless. To do this, you must provide additional information such as your PIN or fingerprint, which adds an extra layer of protection to your financial transactions.
The CBN’s decision is not just about safety; it is also a step towards sustainability. By encouraging contactless payments, they reduce reliance on cash and cards, contributing to a greener environment. Contactless transactions are a step forward in modernizing payments and indicate Nigeria’s willingness to embrace innovation and technology.
Palmpay reaches 25 million users
PalmPay, one of Africa’s leading fintech platforms, is gaining increasing attention in the financial space. Last On Thursday, they shared some impressive numbers highlighting their rapid growth and impact across the continent. With as many as 25 million users, 500,000 mobile money agents and 300,000 merchants, PalmPay has become a major player in the payments industry. PalmPay’s success can be attributed to its smart strategy and adaptability. In 2019, they secured a significant investment of $40 million, which enabled them to develop a modern and efficient payment system. This system solved the challenges faced by unreliable financial systems in Africa. When Nigeria went through a cash crisis in January 2023, PalmPay stood out as one of the most reliable platforms and gained popularity which helped to expand its user base.
In addition to their banking solutions for businesses, PalmPay also introduced a savings service with an attractive 20% annual interest plan for all users. This has provided users with a stable and promising platform to grow their finances. While there may be concerns about sustainability given the current economic climate in Nigeria, PalmPay’s ability to adapt and grow reflects the changing financial landscape in Africa.
No peace for Malians?
In a dramatic turn of events, the United Nations Security Council has ended a long-standing peacekeeping mission in Mali. The decision came as the ruling army in Mali demanded the immediate withdrawal of the international force fighting an armed insurgency. The peacekeeping operation, aptly named MINUSMA, had been in action for more than a decade, but its presence had become increasingly strained due to government restrictions and simmering tensions.
This development can be traced back to Mali’s collaboration with the notorious Russian mercenary group Wagner in 2021, a move that severely limited the effectiveness of peacekeeping efforts both in the air and on the ground. Recognizing the need to bring this difficult chapter to a close, the 15-member Security Council unanimously passed a resolution drafted by France outlining the orderly and safe withdrawal of MINUSMA’s personnel. The mission is intended to complete its operations and hand over its responsibilities by December 31, 2023.
The departure of UN peacekeepers has raised concerns among experts who fear Mali’s ill-equipped army will be left to battle armed fighters who control vast areas in the northern and central desert regions. With only about 1,000 Wagner fighters left, the security situation could potentially deteriorate further, endangering the lives of civilians caught in the crossfire.
ICYMI: Market overview
The Nigerian stock market moved up in a five-day trading week, with the NGX All Share Index rising by 2.98% to close at 60,968.27 points. The biggest winners were Ikeja Hotel plc (33.00%), Transcorp Hotels plc (32.95%), Eterna plc (32.49%), Sterling financial holdings company plc (30.74%) and Chams holding company plc ( 29.82%). The biggest fallers were Secure Electronic Technology plc (-13.16%), Guinea Insurance plc (-12.50%), universal Insurance (-12.50%), Sovereign Trust Insurance plc (-10.91%), Pharma -Deko Plc (-10.00%) .
The naira ended the week at N769.25/$ on Friday at the window for investors and exporters.
Brent rough ended the week at $74.90, while US West Texas Intermediate (WTI) crude closed at $70.64.
The global cryptocurrency market cap stood at $1.2 trillion on Sunday, July 2 at 8 p.m. Bitcoin stood at $30,541.91, up 0.29% over the week, while Ethereum gained a bit of momentum over the week, up 1.01% to trade at $1,912.13 and the Binance coin rose 2.59% over the week to trade at $244.36.
Last week, a Kenyan fashion e-commerce startup launched StoreZetu raised a $1 million pre-seed funding round to add beauty and interior design categories to its portfolio. The pre-seed round was led by Chui Ventures, with participation from Launch Africa, Roselake Ventures and Logos Ventures.
Health tech startup, Berry Health, raised $1.6 million in a pre-seed round to reduce stigma in Africa, starting with Ghana. Lightspeed Ventures and General Catalyst jointly led the round with Jen Wong, Demetri Karagas, Steven Gutentag, Betsy Zimmerman and Regina Benjamin participating.
Aruwa Capital Management, an early-stage equity and gender lens fund, invested $2 million in a Nigerian confectionery manufacturer, Fastizers, to expand its product offering in Nigeria
Weekly Economic Index: New Transaction Limits from CBN, Rising Numbers from Palmpay and Peace (Enforcement) Ends in Mali
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