This rebranding is not just a name change but a reflection of the company’s evolution and its vision for the future.

As Dare Okoudjou, founder and CEO, puts it:

“The name MFS Africa, just like an old jacket, was getting a little tight for us as we’ve grown. We’ve expanded beyond just mobile financial services, becoming a true omni-channel platform across the continent and beyond. As we embark on this next phase of our journey, we wanted a name that reflects our aspiration of wiring up the whole continent into one network of networks with pathways from and to every African and every African business.”

The decision to rebrand comes after significant growth and several acquisitions, including the recent acquisition of GTP, which expanded the company’s reach to the US market.

“The trademark MFS actually belongs to another company in the US, and our ability to use it outside of Africa was becoming difficult,” noted Dare. “With this new name, we can bring everybody together under one brand and identity.

The inspiration behind the new name, Onafriq, stems from the fusion of several powerful words: “Ona”, the Yoruba word for pathways and the French word for Africa, Afrique – plus a nod to IQ, signalling MFS Africa’s commitment to being the smartest game in African fintech.

Onafriq also calls to mind the idea of One Africa, an interconnected borderless continent where access unlocks greater potential.

Okoudjou further added: “From the get-go, my goal was to build a payment infrastructure that touches every corner of Africa and that lasts for over 100 years. My hope is that we get to do that and that we get to make borders truly matter less.”

In today’s fragmented payment landscape, the complexity surrounding cross-border transactions often impedes the free flow of money and inhibits international trade. Onafriq aims to break down these barriers, paving the way for economic growth and empowerment.

As the group embarks on this exciting chapter, we invite partners, stakeholders, and the entire African community to join us on this path of innovation, collaboration, and progress to make borders matter less for millions of Africans on the continent.

If you’re reading this, there’s a very good chance you’re already familiar with the acronym ESG.

Standing for “environmental”, “social”, and “governance”, it’s a constantly evolving standard that emphasises the importance of doing business in a way that positively impacts the environment, society and stakeholders.

In essence, it’s the idea that companies can grow and profit while doing good and it encourages businesses to be more transparent about how they add to or create value for their society, community and/or stakeholders. 

While ESG has its critics (on both sides of the aisle), its philosophy has gained near-universal acceptance in investor circles. In fact, a 2022 study by asset management firm Capital Group found that 89% of investors consider ESG issues in their investment approaches.

Additionally, there are around US$2.5 trillion in ESG assets under fund management. And with rising interest rates putting a dampener on investment (including in Africa), scoring well on those metrics may become more important than ever. 

But for African fintechs the case for ESG goes beyond becoming investable. Implemented properly, the principles behind ESG make a great deal of business sense. As an illustration of how much of a boost it can be to a business, a study by accounting firm Moore Global found that companies with strong ESG principles saw their profits grow 9.1% in the three years between 2019 and 2022.

In other words, the fintechs that get ESG right won’t just have an easier time attracting investment, they’ll also be better poised for growth, sustainability and profitability. 

Why ESG works 

Before looking into how African fintechs can put together the kind of ESG frameworks that encourage growth and investment, it’s worth taking a deeper look at why it makes good business sense (outside of the already strong investment case) to invest in ESG. 

One of the most powerful is the African environmental context. According to the Africa Development Bank, for example, Africa is the continent most vulnerable to climate change.

Any fintech that understands this and works to ensure that its operations are sustainable isn’t just helping mitigate the effects of climate change on the planet, it’s also helping ensure a future environment in which it’s more likely to survive and thrive. 

Of course, ESG isn’t just about the environment. Its second social pillar has an equally important role to play. For fintechs this can look like ensuring that they hire diversely, support MSMEs, and contribute positively to employment in areas where it’s needed most. But perhaps even more importantly, it also includes financial inclusion.  

Choosing to hire diversely has obvious societal benefits: for example it means that previously marginalised groups are able to participate in the economy at much higher levels. But it also comes with significant business benefits. And the higher up the organisation those hires climb, the greater the accrued benefits are.

According to the Boston Consulting Group, companies with above average diversity in their management team report 19% higher innovation revenues than those with lower diversity. 

Supporting micro, small, and medium-sized businesses also benefits fintechs. For starters, they make up a large customer base (particularly for B2B-focused fintechs) on the continent. In sub-Saharan Africa, there are approximately 44 million SMEs.

These enterprises not only serve as the engine of many economies across the African continent, but they also represent a segment historically ignored and under-served by the more traditional financial services players.

By providing products and services which speak directly to the pain points of micro and small enterprises, fintechs can not only tap into a fast growing and profitable segment, but can have a positive impact on the overall economic development and prosperity in the country in which they operate.

Growing financial inclusion in the region, meanwhile, is absolutely critical. At present, just 43% of people in sub-Saharan Africa have a formal bank account. That makes it difficult to access things like vehicle, home, and business loans that can be used to grow income. It also means that any savings the unbanked have can’t be used for wealth generating investments.

Across the region, fintechs are helping people overcome those barriers by expanding financial services such as digital banking, microfinancing, and digital payments to people who wouldn’t previously have access to them. 

The final pillar within the ESG framework, focuses on governance and this is often an overlooked and misunderstood pillar. I am an avid advocate and loud champion of strong corporate governance workings, but I am often asked how strong governance arrangements actually help an organisation thrive and grow. 

Many people equate good governance with rigid structures and bureaucratic processes, but I respectfully disagree with these assertions. The truth is that a solid corporate governance foundation, coupled with the right corporate culture, has exactly the opposite effect.

It frees an organisation from confusion and unnecessary work. It allows for decisions to be made more freely by people who have been empowered to take decisions. It ensures that key decisions are placed with and taken by the most appropriate individuals within an organisation. And it allows for a dynamic, organised, and agile organisation. 

Examples of good governance practices every fintech should have in place include transparent decision-making processes, ethical behaviour, and accountability to stakeholders. This, in turn, helps build trust with customers, investors, and (increasingly stringent) regulators; fostering long-term sustainability and growth.            

Building the right frameworks 

Of course, claiming to be ESG compliant and having an effective ESG framework are two different things. While there are a variety of approaches that can be taken in doing so, at MFS Africa we take a three-pillared approach that focuses on “setting”, “measuring”, and “reporting” the impact we have in local communities and across the Africa continent. 

During the “setting” phase, we outline the parameters which will guide the organisation in its ambition to build a strong impact-driven organisation with a clear ESG approach. Having done that, we measure against those parameters and then report transparently on those measurements. 

While each organisation should tailor its ESG framework according to its individual needs and context, we’ve found this model to be the one best suited to us. It’s helped us grow to be the kind of organisation that can connect more than 500 million mobile money wallets across 40 African countries, supporting over 300,000 agents and providing access to financial services for millions of Africans. 

A policy worth getting right 

Ultimately, despite dire predictions from the extremes of the political landscape, it’s unlikely that ESG will go away soon.

Even if the label disappears, it’s now so entrenched in the way that investors do business, that it’ll remain an important consideration. And that’s because the companies that do ESG well share many of the hallmarks of good, investable companies.

As the African fintech sector continues to grow, its participants should ensure they’re taking a proactive and positive approach to ESG. This will transform the sector beyond “doing” good to “being” good – good for the economy, good for society and good for stakeholders.

The partnership will enable funds to be sent from countries around the world to mobile wallets across Africa through the organization’s licensed payment rails. The service will first launch in Madagascar, and eventually to other countries across the continent.

Kumar Shourav, Managing Director, MTO’s at MFS Africa noted that a partnership like this is unprecedented in the industry, with huge potential benefits, value, and impact implications in the long run.

“At MFS Africa, we have always believed in making payments as simple as possible. Payment infrastructures globally have traditionally remained fragmented and local in nature. Africa’s 54 countries are diverse not just in terms of population, development levels, growth rates, and stability but with payment infrastructure and regulations as well. Africa’s fast-growing populations and markets present important opportunities for businesses and individuals in an environment of slowing global growth.

“MFS Africa has more than a decade worth of experience in navigating the challenging Africa payments landscape. Its direct relationship with mobile wallet players, banks, cash pick up networks and regulators on the continent is unmatched in the industry. Western Union is a global leader in cross-border, cross-currency money movement and payments. Through this partnership, both organisations will provide customers, businesses and Global Development Organisations across the world with access to convenient payout options in Africa.

“This will foster better integration between Africa and the rest of the world and will go a long way in supporting financial inclusion across the continent. Therefore, this partnership made complete sense.”

Similarly, Western Union’s ethos is based on empowering the aspiring populations of the world with accessible financial tools to improve the lives of their loved ones and communities.

Hassan Chatila, Global Head of Account Payout Network, Western Union, says, “At Western Union, we aim to be the global leader in providing accessible financial services to the world’s populations and, in turn, increase global financial inclusion. Our efforts to drive global financial inclusion means delivering on customer needs today and into the future. Through our partnership with MFS Africa, we are excited to come together and deliver on our joint commitment to bring innovative solutions for customers as they support their families and accelerate their momentum up the economic ladder.”

Mohamed Touhami El Ouazzani, Regional Vice President of Africa, Western Union, “Innovation, commitment to customer focus and financial inclusion are at the heart of everything we do at Western Union. We are deeply committed to the region and remain focused on advancing cross-border money movement solutions for the people in this region, their communities as well as the broader economy. Through our collaboration with MFS Africa, we look forward to achieving our common critical role in getting money to the places where and when it is most needed.”

This collaboration to provide access to transacting across borders will further cement MFS Africa as a preferred, better, and one-stop solution for payments into and within Africa.

Whether you’re a young entrepreneur in the merchant marketplace, require access to collect loan repayments from customers or need to send bulk payments, MFS Africa strives to continuously connect senders, recipients, and service providers across the continent.

The organization’s full-service digital payments network connects over 400 million mobile money wallets, over 200 million bank accounts across Africa, and over 200,000 agents in Nigeria, to enable cross-platform and cross-border payments for remittance companies, mobile network operators, banks, non-bank financial institutions and global merchants.

The partnership comes at a time when mobile money is burgeoning at increasing rates on the continent, with businesses and individuals alike requiring solutions that allow them to transact across regions.

“At MFS Africa, it has always been important to us to help businesses of all sizes scale by building a network hub and partner ecosystem that shares these same values. Partnering with EziPay, an organisation that is known for providing digital wallets for inward and outward remittance to MSMEs, SMEs and individuals across continents, made complete sense to further enable the interoperability we aim to achieve through our acquisitions and partnerships,” says Dare Okoudjou, Founder and CEO at MFS Africa.

EziPay, which has a presence in 14 African countries, currently has a global user base of over 300 000, including Africans in the diaspora as well as those in the local expat community who utilise EziPay’s digital wallets for inward and outward remittances.

The organisation’s global wallet Mauritius offering is currently live with over 90+ countries payout corridors.

Amit Gaur, Co-Founder and CEO at EziPay, says, “With EziPay and MFS Africa joining hands to solve cross continent remittances to Africa from Asia, Europe, the UK and the USA, remittances for goods, services, school fees, medical transfers, business transfers, family maintenance allowances, and P2P transfers will be enabled. I firmly believe that with the MFS Africa partnership, our customers will have instant remittances to bank accounts and wallets across Africa for our ever growing customer base.”

MFS Africa has enabled more possibilities, more connections and more interoperability for individuals and businesses alike.

The organisation’s full-service digital payments network connects over 400 million mobile money wallets, over 200 million bank accounts, and over 120,000 agents in Nigeria.

“As Africa’s mobile money landscape continues to evolve, we hope that entrepreneurs will be able to take their businesses to the next level through partnerships like these. Ultimately, we hope that it will lead to not only a more connected Africa, but also a more connected world,” concludes Okoudjou.

Acquired by MFS Africa in June 2022, the US-based GTP is the largest processor of prepaid cards in Africa, with more than 80 banks – including UBA, Ecobank, BIA, Stanbic, Coris, NSIA and Zenith Bank – using its platform.

Prior to joining the GTP executive team, Olaseni Alabede was the Vice President of Product Development in MasterCard’s Installments business. In this New York-based role, he was responsible for the design and development of Buy-Now-Pay-later products on the Mastercard network.

His history in the payments sector, however, dates back to the beginning of his career in 2003, when he started working as a web designer at the now-defunct City Express Bank in Nigeria. After that, he spent nearly a decade at Interswitch, growing from a project engineer to head of enterprise service management.

“We are thrilled to have Olaseni come on board as the new CTO for GTP,” says GTP CEO, Christian Bwakira. “His extensive experience in both the African and international payments spaces and his clear passion for technology’s ability to improve people’s lives and help build better futures makes him the ideal person to drive us forward technologically.”

For his part, Alabede says that he is looking forward to taking charge not just of GTP’s technology stack, but the entire technology initiative behind the company and drive a strategy that enhances the company’s already strong positioning.

“Right now, GTP provides a quality service that customers know and love it for,” he says. “But can we take that to the next level?”

The decision to join GTP, he says, was made primarily on the basis of the impact he believes the company, particularly under MFS Africa’s ownership, can have.  “When you think about what MFS Africa and GTP have done in the African market, that impact is significant,” he says. “I want to be part of taking that further, helping more and more markets replace the need for cash by using seamless technology that integrates our various offerings.”

In helping GTP achieve that impact, Olaseni Alabede plans to focus on seamless customer experiences  as he considers the elimination of friction in payments particularly critical.

“The more friction you remove from the consumer, the more they get out of their payments,” he says.

More particularly, he believes that there will be significant innovation around bringing these technological trends together and that African companies and consumers will benefit from them.

“I think that last mile delivery of frictionless payments and experiences is really going to translate into success,” he says. “As such, we can expect to see a lot of innovation and technological convergence happening in building those frictionless experiences.”

Outside of work, Alabede is passionate about promoting health in underserved communities. He serves on the Board of the Arthur Ashe Institute for Urban Health which provides health education and health equality in the Brooklyn Community and other parts of New York City.

MFS Africa will now gain access to ThetaRay’s SONAR SaaS solution, including AI-powered AML transaction monitoring and sanctions list screening, enabling it to stay a step ahead of complex and emerging financial crime typologies, and increase growth opportunities with a trusted and secure service.

MFS Africa has made significant acquisitions in the past year, acquiring Baxi, a leading super-agency network in Nigeria, and the US-based fintech GTP, a top processor of prepaid cards across the African continent.

“As MFS Africa continues to expand its business across Africa and focuses on enabling new use-cases, ThetaRay’s advanced platform assures the company an efficient and effective solution that can support our increasing payment volumes, while reducing exposure to risk from financial crimes,” said Patrick Gutmann, Managing Director of MFS Africa.

MFS Africa’s full-service digital payments network connects over 400 million mobile money wallets, over 200 million bank accounts and over 150,000 agents to enable cross-platform and cross-border payments for remittance companies, mobile network operators, banks, non-bank financial institutions, and global merchants.

“Moving from a rules-based solution to a sophisticated AI platform is a game-changer for compliance, thanks to its new breed of intelligence that drastically reduces false positives and enables us to detect unknown cases,” said Funmi Dele-Giwa, General Counsel and Head of Governance, Risk & Compliance (GRC) at MFS Africa.

“We take our role in safeguarding the integrity of payments systems very seriously, and this partnership with ThetaRay exemplifies our approach to a strong governance and control environment.”

“MFS Africa is leading the fintech revolution in Africa by enabling digital payments that are accessible to connect all people to the financial world,” said Mark Gazit, CEO of ThetaRay.

“ThetaRay is thrilled to partner with a forward-thinking company whose strategy is to provide new technology that helps open the financial ecosystem and promote financial and economic inclusion. ThetaRay’s advanced AI enables the trust needed by new financial players to be accepted into the system, helping grow business and revenues.”

SONAR is based on an advanced form of AI called “artificial intelligence intuition” that makes better decisions with no bias or thresholds, offering customers a risk-based approach to effectively identify truly suspicious cases and create a full picture of customer identities including across complex, cross-border transaction paths.

This enables the rapid discovery of both known and unknown money laundering threats, with a peerless 95% detection rate and up to 99% reduction in false positives compared to rules-based solutions.

It has been shown that mobile money and other non-traditional forms of financial services are key enablers for financial inclusion in Africa – they have disrupted traditional financial services by providing better ways to transfer funds than using cash.

With mobile and other digital payment systems, customers in Sub-Saharan Africa are gaining access to business loans, savings, and other services that a traditional bank would otherwise provide.

The greater availability of financial services has an incredible impact on many aspects of life in Africa and plays a role in alleviating poverty for communities. 

One player in the omnichannel payment field helping to make the sort of impact that the continent needs is MFS Africa.

It is the largest hub for omnichannel payments in Africa, which connects over 400 million mobile money users on the continent.

Impacting largely the unbanked and the underbanked demographic on the continent, MFS Africa connects mobile network operators, money transfer organisations, cross-border payments remittance firms, financial service providers, and worldwide merchants to millions of mobile wallets on the continent. 

“Our services focus on creating more possibilities for Africans needing to make payments, to carry out money transfers, and to remit funds to others,” explains Dare Okoudjou, Founder and CEO of MFS Africa. “Merchants, banks, mobile operators, and mobile money transfer firms have come to rely on our compliant and cost-effective service, and this is why the MFS Africa network has grown so extensively across the continent of Africa.” 

MFS Africa has achieved a significant presence in Sub-Saharan Africa, being connected today to over 60% of all mobile money wallets in the region. Understanding the need for connecting mobile money to the rest of the world, MFS Africa recently broadened its bank and fintech base offering through the acquisition of US fintech GTP.

This will enable the company to tokenize mobile money space and connect to traditional card scheme ecosystems such VISA and Mastercard.

Okoudjou explains that, “Our guiding principle is that African consumers and businesses should be able to pay for anything, both offline and online. We’ve always known that in order to really eliminate borders, we needed to connect mobile money to the rest of the world; card networks seem to be the most effective means to do so.”

The firm works in over 35 countries in Africa but believes that there are still more areas that it can provide its services to.

It is against this background that MFS Africa negotiated a deal for additional funding from Norsad Capital, an impact investor offering tailor-made debt solutions to mid-market growth companies in Sub-Saharan Africa.

Kenny Nwosu, CEO at Norsad Capital, says: “The Norsad Capital term facility will assist MFS Africa to break into Nigeria, a market that is key to MFS Africa’s growth strategy. With its extensive population and capacity to do business, Nigeria accounts for the largest movement of money around the continent, and our funding is important as it comes at a point in the company’s development where it is poised for significant growth.”

According to Nwosu, “This is a very attractive investment for Norsad as MFS Africa has a strong market position, and this market share puts MFS Africa in a position to be at the forefront of financial inclusion and digital payments in Africa.”

There is also great synergy between the two service providers since MFS Africa is aligned with Norsad’s Purpose of Building a Better Africa. As Okoudjou of MFS Africa explains: “MFS aims to decrease the cost of money remittances to Africa. We currently connect mobile money systems to one another and to money transfer organisations, banks, and other financial institutions, enabling money remittances to and from mobile money accounts. Our move into the Nigerian market will allow us to extend our footprint extensively on the African continent, bringing much-needed financial services to thousands more people.”

In line with Norsad impact objectives, MFS Africa is aligned to Norsad’s Purpose of Building a better Africa. Mobile money has disrupted traditional financial services by providing a better way to transfer funds instead of cash. With mobile payments, customers in Sub-Saharan Africa are gaining access to business loans, savings, and other services as they would get in a bank. Mobile money has an incredible impact on many aspects of life in Africa and plays a role in alleviating poverty for communities. 

The round was led by Admaius Capital Partners, taking the total amount raised in the series to $200 million. 

New investors, Vitruvian Partners and AXA IM Alts joined the extension, alongside existing investors, AfricInvest FIVE and CommerzVentures, who re-invested in the extension. Previous other investors include LUN Partners Group, Goodwell Investments, Allan Gray Ventures, Endeavor Catalyst and Endeavor Harvest, Equator Capital Partners, Ulme B.V., and Vlemeij B.V.

The new funding will further accelerate MFS Africa’s expansion plans across Africa, its integration into the global digital payment ecosystem, expansion into Asia through its joint venture with LUN Partners to enable cross-border digital payments between Africa and China, and its ambitious growth plans for the BAXI network of merchants and agents in Nigeria and beyond.

Providers of debt financing included Stanbic IBTC Bank and Symbiotic. Stanbic IBTC Bank will be partnering with MFS Africa to support the growth of the recently acquired BAXI network of merchants and agents in Nigeria.

Since the first close of its Series C fundraise back in November 2021, MFS Africa has completed its acquisition of BAXI in Nigeria. 

BAXI has since received additional licenses from the Central Bank of Nigeria, including PSSP and PTSP licenses. 

It has also continued to build out its leadership team with the addition of Meghan Taylor – previously Partner at Boston Consulting Group – as Chief of Staff, responsible for business integration across the Group; and most recently, Julian Adkins – previously Africa CFO at Millicom (Tigo) – who has been appointed as Group Chief Financial Officer. Last week, MFS Africa announced its acquisition of Global Technology Partners (GTP) which will accelerate its offering of card connectivity to mobile money users.

Dare Okoudjou, founder and CEO of MFS Africa, commented, “With this US$100 million extension of our Series C fundraise we are thrilled to have the support of world-class investors Admaius, Vitruvian and AXA IM Alts, and for the continued support of existing investors, on our journey to making borders matter less when it comes to payments.

The strength of our business model is grounded on building a lasting digital infrastructure that unleashes and simplifies economic activities across the continent through any-to-any interoperability. Our multiple initiatives and solutions are providing access to Africans, at home and in the diaspora. We are building MFS Africa into a safe, sound, scalable and high impact pan-African payment infrastructure that will facilitate Africa’s rapidly growing commerce, both now and in the future.”

Marlon Chigwende, Managing Partner of Admaius Capital Partners, said: “What drew us to this deal is the quality of the team that Dare has assembled; it is outstanding. As an Africa focused private equity house investing in high impact sectors that drive social and economic transformation, our investment in MFS Africa is exactly what our existing investors are looking for, namely well managed, fast-growing, market leaders empowering financial connectivity and inclusion across the African continent.”

Joe O’Mara, Partner of Vitruvian Partners, said: “At Vitruvian Partners, our mission is to support the most ambitious and talented entrepreneurs and high growth companies to achieve their goals. We are delighted to be making our first investment in the continent with MFS Africa, and we believe that Dare and his team have built the foundations for a transformational business with strong long-term growth prospects.”

Jonathan Dean, Head of Impact Investing at AXA IM Alts, commented: “We are thrilled to invest in MFS Africa’s mission of accelerating digital financial inclusion, as this directly contributes to our broader impact goals of improving financial connectivity and reducing inequalities globally. Our investment will support the expansion of MFS Africa’s product offering and the creation of economic and societal value.”

FT Partners served as the exclusive financial and strategic advisor to MFS Africa in the Series C raise. This transaction underscores FT Partners’ deep domain expertise and unrivalled track record in the payments space across emerging markets, including Africa.

Based in Tulsa, Oklahoma, GTP is the leader in prepaid cards in Africa. Its platform is used by more than 80 banks – including UBA, Ecobank, BIA, Stanbic, Coris, NSIA and Zenith Bank – across 34 countries. GTP is connected to the Visa, Mastercard, GIM, GIMAC and Verve networks for which it processes prepaid cards. 

This new acquisition will allow MFS Africa to strengthen its offerings to the African gig economy, the business travel market and the millions of people who want to take advantage of global e-commerce using a card linked to a mobile money wallet – rather than a bank account – for smooth and secure online shopping.

Founder and Managing Director of MFS Africa, Dare Okoudjou said: “This is an important step for us and the African technology ecosystem, on several levels. The acquisition of a US company of the size and nature of GTP by an African technology company is something of a first, and we are delighted to welcome the GTP team to the MFS Africa family.

“His expertise will allow us to extend our value proposition of last-mile connectivity to banks, and to develop our card offer for mobile money users and other fintechs present on the continent. The acquisition presents immense growth potential and, with our expanded portfolio, we are now truly an omnichannel payments company.”

For his part, Robert Merrick, Founder and Chairman of Global Technology Partners, underlined: “It is thanks to our unique and flexible platform ensuring the success of prepaid card programs that GTP has been able to become the number one prepaid card in Africa. We have established ourselves on the continent thanks to our staff, who are very familiar not only with the prepaid card industry but also with the realities faced by African card users. 

“We match the right solution to the right markets with the right products. MFS Africa is ideal for GTP, and our goals are to add new features and functionality to our platform, expand our customer base, and expand into other countries.”

Following the acquisition of GTP, MFS Africa plans to further invest in GTP’s current card programs offered to banks and bring to them all the innovations and possibilities offered by the MFS Africa network – including interoperability, with mobile money. 

The company will also leverage GTP’s platform to more quickly set up card programs for mobile network operators and fintechs in Africa. Finally, MFS Africa intends to take advantage of GTP’s presence in the United States to develop its commercial activities in North America.