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Jumia may partner Stripe, 9 other Fintech predictions for 2021 from experts

Experts have made some predictions for digital payments and African venture investments for 2021.



Coronavirus: Nigerian banks advise customers against visiting banking hall for transactions, Traditional banks make a play for Nigerian Fintechs- GTB the pioneers

The fintech and technology business community witnessed impressive spikes in 2020 – from companies surpassing their yearly targets to big mergers and acquisitions.

Consequently, many industry experts have made certain predictions for digital payments and African venture investments for 2021.

Here are some from Adedeji Olowe – Founder and CEO of Trium Networks and Elliot Pence – Senior Associate at CSIS.

Jumia Group may partner Stripe

  • According to Eliot Pence, since Stripe needs SMEs to adopt its platform, it needs to seed the e-commerce ecosystem wherever it does business. What better place to do that than in Africa, where online commerce is growing 75% faster than the global average.
  • Jumia proved to the market this year that it can reduce operating costs (reducing operating costs by nearly 50% in ’20) and seed the broader continental e-commerce ecosystem.
  • This will help Stripe to achieve its goal of seamlessly connecting online businesses and payment processors, allowing more businesses to accept online payments in the African market.

Plaid for Africa will emerge

  • What Paystack was to Stripe; Mono, a Nigerian startup, will be to Plaid in 2021,” says Elliot.

Plaid helps all companies build fintech solutions by making it easy, safe, and reliable for people to connect their financial data to apps and services which is what Mono is doing in Nigeria.

The fastest-growing sector in African venture is fintech.

  • “The combination of slow-moving banks ignorant regulators and savvy consumers are a blessing for future seekers. Until now, the focus for many entrepreneurs has been on leapfrogging the old institutions – Neobanks, quasi-credit/lending platforms, or crypto exchanges,Eliot stated.

While these are important, a more immediate opportunity is simply creating a single API that the old (institutions) and new can talk through, that is why Mono created this new way to connect to financial accounts without screen scraping.

Free interbank transfers to go mainstream

As more people get accustomed to digital banking and the zero charges they offer, commercial banks might soon adopt the zero charges policy.

As Adedeji puts it,

  • Kuda made noise about this (and it seems to be working), and Sparkle is now leading the charge. But guess what, a major bank (think Access, GTBank, or Sterling but not UBA) will decide to reduce their charges for interbank transfers below a certain amount, say N5K, free.”

Such a move has excellent optics and most importantly, it’s the singularly free feature nobody can abuse. The question is, what would be the implication on digital-only banks like Kuda and the rest when it becomes mainstream?

Fierce competition in the Logistics sector

  • According to Eliot’s predictions, there will be fierce competition in “logistics marketplace” start-ups, Kobo360, LoriSystems, appTrella, and new platforms like Salesforce-backed Angaza, which have transformed how manufacturers send and how consumers afford things.
  • Expect logistics and pay-as-you-go platforms to merge more in 2021 as the continent looks to make real the promises of the Africa Continental Free Trade Agreement. We are already seeing this happening with MVXchange partnering with Japanese firm Digitrad.

Interbank transactions to cross half a billion a month

  • Adedeji predicts that in 2021, interbank transactions will cross half a billion in a month. This prediction seems feasible seeing as in November 2020, interbank transactions were at N224million. From these numbers, the pace will continue, and it will cross the 500m transactions per month before the end of the third quarter.

Africa to have highest Crypto users

  • Throughout the 2000s, Journalists endlessly cited “7 out of 10 of the fastest-growing countries in the world are in Africa.” In the 2020s, they will cite “3 out of 10 of the biggest users of crypto are in Africa.” says Elliot
  • We are already seeing this happening as Nigeria has become the second-largest bitcoin market on Paxful.
  • Elliot expressed that the widespread adoption of crypto, and its parent decentralized finance (DeFi), is driving investment into the region by global investors – from Asian entrepreneurs looking to grow exports into Africa to Western “crypto evangelists” that are calling for the end of centralized finance – with deep pockets.

Even though Africa constitutes a small portion of global volume on aggregate, its consumer use is a larger share of activity than any other region.

Local Investors will step to the plate

  • Adedeji predicts that the percentage of investment by local investors will grow to be at least 30% this year, largely because a lot of people missed out on the Paystack investment train when it came calling years ago. Investors will be looking for the next big thing to put their money. There will be a lot of Angel investors this year.
  • Adedeji warns future investors and founders that angel investment is not for the impatient and the weak of heart. Not every cash you see is good for your cap table.

Agent locations to surpass 1million

  • Despite the pandemic, Agency banking has grown rapidly. According to the world bank, 1.7 billion adults remain unbanked, yet two-thirds of them own a mobile phone that could help them access financial services. “Companies like Opay that adopted the Agency banking have seen a spike in transactions totalling N1.4b in a month,” says Adedeji
  • He also stated that Teamapt is almost pivoting to this as well. Unofficial numbers of locations hit 530K last year. At the same time, SANEF seems a bit quiet about a target; I’m sure the market will drag this over to 1million locations before the end of the year.

Toptal may partner Andela

  • Eliot presumes that Toptal – the world leader in connecting businesses with software engineers, will achieve greater global reach by acquiring Andela (and potentially other remote ‘talent marketplace’ businesses around the world) and signals it will go public in 2022, building on its acquisition of Skillbridge. This one seems a little unlikely but let’s see how the year pans out.

CBN will cave in as MTN gets a PSB license

  • Adedeji already predicted in 2020 that MTN will get a PSB license but that didn’t happen. He hopes that it will happen subsequently this year.
  • MTN has been unsuccessful in acquiring a PSB license from CBN, so their chances of joining the financial service industry are slim.
  • Olowe hopes that with Karl Toriola running MTN from March 1, 2021, we can be sure that he will do something as he has a track record of performance, and banking has a track record of minting cash. MTN won’t give up until they get this license.

Janet John is a graduate of Chemical Engineering from the University of Uyo. She specializes in technical writing where she creates easy to read documentation, articles to clearly and efficiently explain highly complex processes. When she is not writing, she works as a freelance front-end developer

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FG says N10 billion disbursed funds not only for Covid-19 vaccines

FG has clarified that the N10 billion it earlier disbursed was not only for the development of Covid-19 vaccines.



Nigeria might fall into recession - Budget Office, FG not enjoying dividend of trillions spent on CBN, NPA, other MDAs - Akabueze

The Ministry of Finance, Budget and National Planning has said that the N10 billion it released for vaccine development is not only for the production of Covid-19 vaccines.

This was disclosed by the Director-General of the Budget Office, Mr. Ben Akabueze, representing the Finance Minister during a meeting with the National Assembly Joint Committee on Health on Monday, reported by NTA.

Following the announcement of the disbursement of the sum of N10 billion to the Ministry of Health for the development of Covid-19 vaccine, the Joint Committee scheduled a meeting with the Ministers of Finance and Health for clarifications on the funds.

“The joint committee is invited to note that N10 billion has been released, to the Federal Ministry of Health under the budgetary vote referenced in above,” Akabueze said.

Ibrahim Oloriegbe,  Chairman, Senate Committee on health, said the Committee wanted to know what the use of the funds was for and urged against the implementation of a lockdown.


“We got to see that what was released was in line with what was already there, for preparing the country for all other vaccines arrangements

“So our economy, we only need to live with covid, we cannot with due respect, contaminate Nigeria with a lockdown, it will badly affect our economy,” Oloriegbe said.

The committee also said the total aim is to see how Nigeria can develop its capacity towards the development of vaccines,

The Joint Committee, therefore, resolved that the Minister of Health who was absent at the meeting should appear before it on Tuesday for a breakdown on the proposed use of the funds.

What you should know: Nairametrics reported last week that the Federal Government, through the Ministry of Finance, announced the sum of N10billion for the production of vaccines in Nigeria, to fight the coronavirus.

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$70 billion lost in Crypto market amid rising U.S dollar

Other leading crypto assets including Ethereum, Cardano, Litcoin, Chainlink, Polkadot, and Stellar lost more than 8% in value.



The crypto market just lost about $70 billion, as significant selling pressure from crypto sellers pushed the value of cryptocurrencies lower across the market spectrum amid the rising U.S dollar and some profit-taking.

  • The global crypto market value is $930.47 billion, a 5.61% decrease over the last day.
  • The U.S dollar was fired up as it recorded impressive gains at the Tuesday trading session in London taking into account some investors are fast becoming jittery on rising COVID-19 caseloads globally.
  • At press time, the U.S. Dollar Index that tracks the greenback against a basket of major currencies ticked up by 0.20% to 90.555

At the time of drafting this report, about $70 billion in value was virtually wiped out, taking into account the flagship crypto, Bitcoin, the dominant player in the crypto market, lost as much as $2,000, according to data retrieved from Coin360.

  • The total crypto market volume over the last 24 hours is $131.42 billion, which amounts to a 2.07% increase.
  • The total volume in DeFi is currently $15.68 billion, 11.93% of the total crypto market 24-hour volume.
  • The volume of all stable coins is now $105.17 Billion, which is 80.03% of the total crypto market 24-hour volume.
    Bitcoin’s price is currently $31,398.04.
  • Bitcoin’s dominance is currently 62.74%, a decrease of 0.01% over the day.

Other leading crypto assets including Ethereum, Cardano, Litcoin, Chainlink, Polkadot, and Stellar lost more than 8% in value.

Crypto experts interviewed by Nairametrics are saying that a market correction was long overdue after the overextended bullish move.

The bearish trend prevailing at the bitcoin market is largely attributed to a significant amount of profit-taking in play, coupled with the strong rebound in the U.S dollar


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AfDB to commit $12.5 billion to climate finance

The AfDB has announced that it will fund climate finance in Africa with an additional sum of $12.5 billion.



Akinwunmi Adesina, Afdb, Africa’s GDP could fall by 3.4% in 2020 if COVID-19 continues – AFDB

The African Development Bank has announced that it will fund climate finance in Africa with an additional sum of $12.5 billion.

This was disclosed by the President of the AfDB, Dr Akinwumi Adesina, at the online International Climate Adaptation Summit (CAS) 2021 on Monday. The summit aims to define the path for a decade of climate investment and transformation in the 2030s.

Adesina added that the bank would increase its climate financing by 400%, rising from 38% of its total financing in 2019, stating that Africa needed collective actions to take the climate fight seriously and adapt to ecological changes.

“We expect to reach 40 per cent in climate finance this year.

“To do more for Africa, we are building strategic partnerships,” he said.



“The AfDB and the GCA-Africa have launched the ‘Africa Adaptation Acceleration Program’ to mobilise 25 billion dollars in new climate finance for Africa—and to scale up innovative and transformative actions on climate adaptation across Africa,” he added.

Adesina also disclosed that The Bank launched the Desert-to-Power initiative — a $20 billion initiative — to build the world’s largest solar zone in the Sahel, also citing the Digital Agriculture Flagship will leverage $2 billion to deliver digital climate advisory services to reach 300 million farmers by 2030.

What you should know 

  • Recall Nairametrics reported that African Development Bank (AfDB) said it was committed to mobilizing the sum of $25 billion in climate finance in Africa by 2025, as well as a number of other initiatives by the bank that would address climate adaptation.
  • Dr Akinwumi Adesina also revealed plans to support the Great Green Wall initiative with $6.5 billion over the next five years.

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