BD Insider 237: Flutterwave receives license to operate in Mozambique

It’s a new month, but some things have not passed away with the previous month. One of which is $DAVIDO. The token launched by the popular African musician Davido experienced a massive crash from $10 million in market capitalisation to $2.2 million within 24 hours of its launch, raising discussions on social media about whether it's all a “scam.” 

In this letter, we explore: 

• Flutterwave receives license to operate in Mozambique
• Starlink secures Botswanan license
• MoMo launches Open API 

We also curated updates on the state of funding in Africa, other noteworthy information, and several opportunities.

The big three! 

#1 Flutterwave Granted Approval-in-Principle for Payment Gateway License in Mozambique

The News: Flutterwave has secured approval in principle for its payment aggregator license from the Central Bank of Mozambique. This move allows Flutterwave to offer its comprehensive payment services in Mozambique and expand its presence in southern African markets.

Why it Matters: Mozambique's digital payment market is experiencing rapid growth, with projections estimating a total transaction value exceeding $9 billion by 2028. Flutterwave's entry positions them to play a key role in this expansion and contribute to the country’s financial development.

The new license also benefits both local and international businesses. Local businesses gain access to a secure and convenient payment solution, while international enterprises can leverage Flutterwave's reach to expand into Mozambique and tap into a new customer base.

Zoom In: Olugbenga Agboola, Founder and CEO of Flutterwave, expressed his gratitude to the Central Bank of Mozambique and emphasised the company's commitment to empowering local businesses and welcoming global players across various industries. This Mozambique license follows similar recent licenses acquired in Malawi and the United States.

#2 Starlink Secures Botswana License After Initial Rejection, Expanding Reach in Southern Africa

The News: Botswana has granted SpaceX's Starlink satellite internet service an operating license. This news follows a period of uncertainty for Starlink in Botswana, marked by an initial rejection of their application and a subsequent ban on their equipment.

Why it Matters: Starlink's core mission is to provide internet access in underserved regions.  With over 2.7 million citizens, Botswana has a significant population that could benefit from Starlink's ability to deliver internet connectivity to remote areas. 

Despite boasting a high internet penetration rate, Botswana has one of the highest data prices in Africa. Starlink's entry into the market injects competition, potentially leading to a significant reduction in internet costs for consumers.

Context: Three months ago, the Botswana Communications and Regulatory Authority (BOCRA) rejected Starlink's license application, citing missing information. This decision was followed by a ban on importing, selling, and using Starlink equipment in the country.

The turning point appears to have been a pivotal meeting between President Mokgweetsi Masisi and SpaceX executives in the US. President Masisi directed BOCRA to fast-track Starlink's license application after the meeting.

Zoom Out: Botswana's journey with Starlink mirrors a similar situation in neighbouring Zimbabwe. Zimbabwe initially banned Starlink but later reversed course and approved its operation after the arrest of a politician's son for using an unauthorized Starlink terminal.  

While several southern African countries, including Botswana and Zimbabwe, have opened their doors to Starlink, South Africa remains a notable exception.  

#3 MTN's MoMo Pushes Digital Wallets in Nigeria with Open API Launch

The News: MTN's mobile money arm, MoMo, has launched an open API (Application Programming Interface) to increase the use of digital wallets in Nigeria. 

Why it Matters: By offering a seamless integration for other fintech companies to collect payments through MoMo wallets, MoMo aims to expand its user base and capture a larger share of the digital payments market in Nigeria, Africa's most populous country. MoMo currently has over 40 million wallet users in Nigeria, representing only a fraction of the total mobile money population.

The open API also eliminates the need for fintech companies to build separate APIs, saving them time and resources. This allows them to leverage MoMo's existing infrastructure and user base to collect payments.

Zoom In: MoMo launched its open API in 2023 and has already onboarded over 20 businesses, including Vasnets, Wakanow, Travelstart, and Huawei. Adding features like cash disbursement and payments is expected to attract companies to the platform.

The "mini-app" feature within MoMo's super app allows partner companies to build sub-apps, creating a one-stop shop for users to access various services and complete transactions seamlessly.

💰 State of Funding in Africa

Here’s a roundup of African startups that secured funding last week:

• YolaFresh, a Moroccan agritech startup has raised $7 million in pre-series A funding.  Al Mada Ventures led the funding round, joined by Algebra Ventures, E3 Capital, Janngo Capital, and the Dutch Entrepreneurial Development Bank (FMO).
• Kenyan e-mobility companies Roam Electric, BasiGo & Mogo each secured $10 million in debt funding from the US government. 

📚 Noteworthy

Here are other important stories in the media:

• The multi-currency bank account guide to solve your cross border payment problems: A guide into how multi-currency bank accounts and how to manage them.
• First Bank employee diverts ₦40 billion: An employee of First Bank is on the run after allegedly diverting ₦40 billion.
• Are you a micro-scale business in Africa looking to simplify your payment processes and leverage unique customer insights to gain a competitive advantage in your market? Apply Now. Application Deadline June 20th.
• Bolt introduces a bidding system for drivers in Nigeria: Bolt implements a bidding system that allows drivers to negotiate prices with riders.
• Asia’s richest man to invest in Ghana: Mukesh Ambani set to invest in Ghana’s telecommunications market.
• Oracles announced plans to establish two Cloud Regions in Morocco to provide enterprise cloud services to local and regional organisations throughout Africa. 

💼 Opportunities

Jobs

We carefully curate open opportunities in Product & Design, Data & Engineering, and Admin & Growth every week.

Product & Design

• Nauto — Product Design Intern, Remote
• FairMoney — Lead Product Manager, Lagos
• Smartcat — Product Designer, Remote 

Data & Engineering

• GoLemon — Backend Engineer(Mid Level), Lagos
• VALR — Backend Engineer, Remote
• Moniepoint — Flutter Developer, Remote 

Admin & Growth

• EarlyNode — Social Media Lead, Remote(Nigeria)
• Renmoney — Chief Marketing Officer, Lagos
• Helium Health — Communications Lead, Lagos
• Carry1st — Growth Manager, Lagos

Thanks for reading this edition.

Have a great week!