Financial Inclusion Benefits

This goes far beyond the headlines. Why would major financial players, including Morgan Stanley, pour $104 million into a crypto startup? If you want to buy Bitcoin or stablecoins today, most people go to a crypto exchange like Coinbase or Binance. That’s where they open an account, move money over, and trade or hold their digital assets. In other words, exchanges are the on-ramp into the digital asset economy — the entry point where everyday users first gain access to buying, selling, and holding crypto. But here’s the problem: for end-users, it means opening and maintaining a separate account outside their trusted bank, broker, or payments app. For financial institutions, it means watching value (and customer relationships) flow out of their ecosystem. Zerohash raised $104 mn exactly because it solves this problem. It gives institutions a new model for delivering digital assets. Founded in 2017, it builds the invisible infrastructure that lets banks, brokerages, fintechs, and payments companies offer crypto and stablecoin services inside their own platforms. • A brokerage can let clients buy and hold Bitcoin without sending them to Coinbase. • A payments company can settle transactions instantly in stablecoins. • An asset manager can tokenize funds and distribute them globally. Zerohash manages the critical components — custody, compliance, settlement, licensing — via APIs, enabling institutions to launch faster without taking on the full regulatory and operational weight of an exchange build. This is about infrastructure — building the layer that brings digital assets into the mainstream of finance. By embedding crypto, stablecoins, and tokenized assets directly into banks, brokers, and payments apps, customers can stay within the platforms they already trust. For end-users, it means seamless access to digital assets without opening new accounts. For institutions, it means retaining relationships while delivering the next generation of financial products. 𝗦𝗼𝗺𝗲 𝗼𝗳 𝘁𝗵𝗲 𝗺𝗼𝘀𝘁 𝗲𝘀𝘁𝗮𝗯𝗹𝗶𝘀𝗵𝗲𝗱 𝗻𝗮𝗺𝗲𝘀 𝗶𝗻 𝗳𝗶𝗻𝗮𝗻𝗰𝗲 𝗮𝗿𝗲 𝗽𝗿𝗲𝗽𝗮𝗿𝗶𝗻𝗴 𝗳𝗼𝗿 𝗮 𝘄𝗼𝗿𝗹𝗱 𝘄𝗵𝗲𝗿𝗲 𝘁𝗵𝗲𝗶𝗿 𝗰𝗼𝗿𝗲 𝗯𝘂𝘀𝗶𝗻𝗲𝘀𝘀 𝘄𝗶𝗹𝗹 𝗯𝗲 𝗱𝗶𝘀𝗿𝘂𝗽𝘁𝗲𝗱 𝗯𝘆 𝗱𝗶𝗴𝗶𝘁𝗮𝗹 𝗮𝘀𝘀𝗲𝘁𝘀. In that context, the $104 mn might actually be a bargain. Opinions: my own, Graphic source: CBNC Subscribe to my newsletter: https://lnkd.in/dkqhnxdg

🚨 Why Farmers Stay Poor: Are Finance Models Designed to Fail Them? It’s not the weather. It’s not the soil. It’s the system. For decades, financial models in agriculture have appeared to support farmers, yet poverty persists like a crop that won’t die. But why? Because the system is designed to finance the input, not the impact. Farmers are given loans to buy seeds and fertilizer only to sell low and borrow again. This is not empowerment. It’s a financial treadmill. Here’s the uncomfortable truth: > Most agricultural finance schemes were designed for lenders to manage risk not for farmers to build wealth < Three systemic design flaws that keep farmers trapped: 1. Short-term loans for long-term crops: Cash crops like coffee, banana, or avocado need patient capital. But most agri-loans are seasonal, forcing early harvests and losses. 2. Collateral bias: Land titles or assets are demanded, excluding women and youth who ironically are the ones farming most. 3. Profit blindness: No financing model asks: Will this farmer actually make money from this season? It assumes yield = success. But yield doesn’t pay school fees. Profits do. We don’t need more credit. We need credit designed for context. So what’s the solution? 📌 Agri-finance products co-designed with farmer groups. 📌 Flexible repayment systems linked to harvest cycles, not calendar months. 📌 Data-informed risk scoring using real-time climate and market data. 📌 Incentives for banks to finance regenerative and value-adding models, not just inputs. In 2025, agricultural finance must go beyond transactions to build transformation. If you're building a new finance product, running an agri-startup, or investing in food systems and you’re not thinking about this you’re building on sand. Let’s create capital that liberates, not entraps. National Agricultural Research Organisation - NARO FAO M-Omulimisa Enimiro Uganda Avotein Farms Limited Amabanda Uganda Limited Emata Shambapro AgriLink Uganda AgriProFocus Uganda Solidaridad East and Central Africa AGRA Are you curious on how I can redesign your agri-finance approach to actually build farmer wealth? Let’s connect. #Agribusiness #Agrifinance #InclusiveFinance #UgandaAgriculture #Agritech #SmallholderFarmers #Agripreneurs #AgriPolicy #FintechForFarmers #TheAgrithinkersTimes #AgriWealthStrategies #ClimateSmartFinance

Bank for International Settlements – BIS - "DeFiying Borders: What Cross-Border Crypto Flows Reveal About Global Finance" 1. Cross-Border Crypto Is Big and Growing - Crypto transactions across borders peaked at $2.6 trillion in 2021, equal to 12% of global trade in goods, with stablecoins accounting for nearly half of the volume. - Despite market downturns, flows rebounded to $600 billion in Q2 2024. 2. Stablecoins Are the Real Movers - While Bitcoin once dominated, by mid-2024 stablecoins (Tether and USDC) overtook, especially in low-value transfers. - This aligns with their increasing role as transactional tools—not just speculative assets. 3. Traditional Frictions Don’t Apply - Unlike traditional finance, crypto flows are less affected by distance, borders, or language. - This means DeFi “defies” gravity—digital assets move freely regardless of geographic or political barriers. 4. Crypto as Remittance Rail - High traditional remittance fees correlate with higher stablecoin and low-value BTC flows, especially from advanced to emerging markets. - This signals crypto’s growing use as a cheaper, faster alternative to move money abroad. 5. Capital Controls? Crypto Doesn’t Care - Capital Flow Management measures (CFMs) aimed at curbing outflows or inflows appear largely ineffective. - In some cases, CFMs are even associated with increased crypto flows, suggesting crypto is being used to bypass restrictions. So What? - This BIS paper underscores that crypto isn’t just speculation—it’s infrastructure. - Whether for remittances, trading, or hedging, cryptoassets—especially stablecoins—are reshaping how money moves globally, outside traditional financial controls. - For regulators and policymakers, ignoring crypto’s cross-border role is no longer an option. Great work Raphael Auer, Ulf Lewrick and Jan Paulick

Africa is NOT a Country And Treating It Like One Could Cost You Millions. Last week I said it, and I’ll say it again: the biggest mistake investors make is thinking Africa is a monolith. This infographic from Afridigest is the perfect explanation for why that mindset is so dangerous. If you are building or investing in Fintech, you are navigating FOUR market archetypes. You cannot copy-paste a winning strategy from Lagos to Nairobi. The infrastructure dictates the product: ➡️ Banking Bastions (South Africa, Morocco): Compete with entrenched banks; products must inspire trust.  ➡️ Mobile Money Mavens (Kenya, Ghana): Telcos are gatekeepers; if you don’t integrate mobile money, you’re invisible.  ➡️ Transformation Titans (Nigeria, Egypt): High-velocity fintech frontiers; startups shape the economy in real-time.  Now, this doesn't mean we should ignore the push for unity. The AfCFTA (African Continental Free Trade Area) is the most ambitious project on the continent. With the rollout of the Digital Trade Protocol and the Pan-African Payment and Settlement System (PAPSS), we are finally building the pipes to connect these 54 markets. The reality: AfCFTA is the goal; Afridigest’s map is the starting line. Bottom Line for 2026: To win in African Fintech today, you need a "Dual-Track" Strategy ✅ Respect the Archetype: Build for the specific infrastructure of the market you are in now. ✅ Prepare for Integration: Ensure your tech stack is ready for the cross-border interoperability that the AfCFTA promises. Capital alone isn’t enough. Context is everything. Don’t wait for a unified Africa to start building, but don’t build so narrowly that you’re trapped when the borders finally open.

Venture capital in 2025 is doubling down on fundamentals: agri-inputs, precision farming, and rural fintech. Globally, agtech secured $1.6B across 137 deals in Q1 2025. That’s a slight dip in value (3.7%) and deal count (24.7%) vs Q4 2024 but the median deal size rose to $4.4M from $3.2M, and pre-money valuations jumped from $15.1M to $20M. It’s no longer about spray-and-pray. It’s a flight to quality. India’s resilience stands out. Between FY22 and FY25, $2.6B was deployed across 340 agtech deals, with an average size of $7M. And 70% of this capital flowed into B2B/B2C market linkage platforms, businesses that directly connect farmers with markets, removing inefficiencies and middlemen. Agri-inputs is one area attracting real attention. Traditional supply chains were fragmented and opaque. Today, startups are building digital-first input platforms that offer AI-led crop recommendations, connect farmers directly to manufacturers, and integrate with broader farm management tools. This not only improves access and affordability but also paves the way for precision farming convergence. Speaking of which, precision farming is booming. The global market is valued at $8.4B in 2025, projected to reach $36.9B by 2034, growing at a CAGR of 17.9%. The tech stack: IoT, GPS, AI, 5G, and predictive analytics is now mature. Whether it’s AI-driven crop health monitoring, smart irrigation, or agricultural drones (a market set to touch $10.45B by 2030), the ROI for farmers is becoming hard to ignore. Then comes the quiet disruptor: rural fintech. In Q1 2025 alone, Indian fintech raised $461M, with lending making up 30% of total inflows. But what’s really interesting is how alternative credit scoring is unlocking financing for underserved agri communities. Platforms are using farm output data and transaction histories, bypassing traditional collateral models. Combine that with UPI penetration in villages and emerging blockchain-based agri-finance models, and rural fintech suddenly looks like one of the most bankable bets. And the timing couldn’t be better. Investors are under increasing pressure to align with ESG and climate-smart agriculture. From ESG-linked loans verified by satellite to sustainability tokens on blockchain, capital is finally syncing with purpose. Even multilaterals and governments are stepping in. ₹500 Cr has been requested by agri-fintech players to scale inclusion-focused rural services. This isn’t just a wave, it’s a reset. One where investor interest is no longer driven by novelty, but by hard metrics: profitability, scalability, and impact. The intersection of tech, data, and financial inclusion is where the future of farming is being built. If you’re building something in this space or investing in it, this is your moment.

What if rural farmers and traders in Africa could access payments, credit, health insurance, and pensions all from a single platform? Not just basic banking. But true financial empowerment. Abiola Jimoh, Co-Founder and Co-CEO of XCHANGEBOX, is working on making that future a reality through PayRep, and it's already transforming how underserved communities in Northern Nigeria trade, grow, and thrive. For episode #172 of the Unlocking Africa Podcast, I spoke with Abiola, who shared how firsthand fieldwork sparked a mission to bridge the financial access gap for SMEs, farmers, and traders across Nigeria. As Abiola noted… "You can't just dump technology on people. You need technology and people to work together if you want to build something sustainable." "We want to create an opportunity for people to invest in a system that unlocks the potential of Africa's SMEs and farmers." During our conversation we discussed: → Building financial inclusion from the ground up → Overcoming regulatory barriers to fintech innovation → Why in Africa, "you need people more than technology" to scale rural businesses → The dream of a synergised pan-African e-commerce framework Abiola also contributed a powerful chapter to the book Thrive: Mastering E-Commerce the African Way, published by Africa Retail Academy, Lagos Business School Nigeria, where he discusses the urgent need for regulatory reform to unlock Africa’s e-commerce potential. In his chapter, he makes one thing clear: Real financial inclusion isn’t just about technology. It’s about understanding people, solving real pain points, and building the infrastructure that empowers lasting growth. If you are interested in fintech, development, agriculture, or scaling impact in emerging markets, this episode is a must-listen. ⬇️ Link to this episode is in the comments below ⬇️ #Fintech #FinancialInclusion #SMEGrowth #UnlockingAfrica #Podcast #Ecommerce #PodcastHost

After reviewing more pitch decks these past few days, I see African fintech founders are still flogging the dead horse that is "banking the unbanked" as a lazy fundraising pitch. From Yaounde to Cape Town, it’s the same story, another mobile wallet, payments app, another promise to bring financial inclusion to the masses. Truth is: most Africans are not unbanked because they lack access; they’re unbanked because they lack income. A new app won’t change that. The Brutal Truth Lack of Disposable Income – People don’t need more fintech solutions; they need more money. Without increased economic productivity, most “financial inclusion” solutions remain useless. Broken Unit Economics – Many fintechs rely on unsustainable VC fueled growth, acquiring “users” who don’t generate revenue. Regulatory Capture & Infrastructure Gaps – Governments protect banks and telcos dominate mobile money. The real bottlenecks are systemic, not just about "access." Startups often underestimate how slow, expensive, and political it is to scale across markets. Real Problems & Better Solutions Income-Generating Fintech – Instead of just moving money, fintech should help people make money. Platforms enabling gig work, SME financing, and export-focused businesses can drive real financial inclusion. A fintech that helps informal traders access larger markets, rather than just helping them "save." Decentralized Credit & Alternative Lending – Traditional credit models don’t work in Africa. Instead: Use supply chain data, mobile behavior, and transaction flows to build more dynamic credit models. Integrate fintech into cooperative lending structures like tontines or village savings groups, where trust already exists. B2B Payments & Trade Infrastructure – Cross-border trade needs work, killing SME growth. Fix it: Build better escrow and invoice financing tools that help African businesses transact across borders securely. Verticalized Fintech in High-Impact Sectors – Fintech should power real economic activity, not just payments. Agritech fintech: Give farmers access to dynamic pricing, supply chain finance, and better insurance. Healthcare fintech: Enable embedded payments and credit for medical services, helping people afford care without predatory loans. Logistics fintech: Provide financing for truckers, warehousing solutions, and real-time supply chain support. Infrastructure-First Fintech – If power, internet, & ID verification are problems, solve those first. Payments without stable connectivity? Build USSD-based financial services. Weak credit infrastructure? Build platforms that help lenders pool risk and share credit data across borders. The era of cheap fundraising gimmicks is over. African fintech must shift from vanity metrics to real impact, solving income generation, trade inefficiencies, and credit access at scale. I'm tired of saying this, founders who build with these in mind won’t need to beg for funding; investors will come looking for them.

🔴 In Africa, Uber lost to the boda driver with a phone number you can actually call. That's not a failure of technology—it's a masterclass in what truly drives financial inclusion. In a recent FS i-Hub session with Hugo Pacheco - The Barefoot Economist and Rob Sanford, CEO of SafeBoda (mobility fintech super app), revealed something profound: in markets where 80% of workers are informal and trust is scarce, embedded finance isn't about APIs—it's about understanding people. The conversation cut through the hype: 📍 Platforms aren't just apps—they're economic infrastructure 📍 Financial wellness comes before financial growth 📍 Trust beats speed in low-trust environments ‣ Rob's insight hit home: "Traditional banks can't underwrite a boda driver—but we can, because we know their work, income patterns, and ambitions." SafeBoda doesn't just move people. It embeds insurance, vehicle loans, land credit, and same-day payouts directly into daily work. Drivers repay loans through rides, build credit histories through activity, and move from instability to asset ownership. This is what financial inclusion looks like when it's designed from the ground up—not imported from the top down. Key insights from the session: • Local platforms win because they build trust through human support, not just technology • Embedded finance works when it's lived daily, not layered on afterward  • Africa needs 12 million new jobs yearly—platforms are filling the gap that formal systems can't • Smart regulation should enable platform innovation, not strangle it Hugo brings us conversations that challenge conventional wisdom and spotlight what's actually working in African fintech—not what sounds good in boardrooms. Because the future of work and finance in Africa won't be written by those chasing global playbooks. It will be built by those who understand local realities. 👇 Read the full insights from the session  🎥 Watch the replay (link included in the article) What's your take? Can global platforms ever truly compete with locally-rooted solutions in emerging markets? #Fintech #Africa #superapp #FSiHub

🚀 Boosting Electronic Payment Adoption: Lessons from Tanzania, India, Brazil, and Algeria 🌍 Digital payments are reshaping economies, with emerging markets leading the way. Recent innovations from Tanzania, India, Brazil, and Algeria showcase transformative strategies for accelerating adoption and enhancing financial inclusion. Here’s how these nations are driving change: 🌟 4 Inspiring Strategies 1️⃣ Tanzania – Breaking Barriers with Fee Removal • By eliminating fees on card transactions, Tanzania is paving the way for a cash-lite economy, ensuring digital payments are affordable for consumers and merchants. • Takeaway: Removing financial barriers at the point of use is a simple yet powerful way to encourage adoption. 2️⃣ India – Scaling Through Subsidies • India’s UPI platform, backed by government subsidies, offers zero fees for consumers and most merchants. With over 8 billion transactions monthly, UPI has become a global benchmark for scale and accessibility. • Takeaway: Public investment in digital infrastructure can create a massive, inclusive payment ecosystem. 3️⃣ Brazil – Balancing Low Costs and Sustainability • The PIX system, centralized by Brazil’s Central Bank, provides free transactions for individuals and minimal fees (0.5%-1%) for merchants. This model ensures both affordability and system sustainability. • Takeaway: A modest fee for merchants can sustain growth while driving widespread adoption. 4️⃣ Algeria – Incentivizing Inclusion with Tax Relief • Launching DZ MOB PAY in 2025, Algeria plans to offer free payments for users and merchants. Banks will cover costs through tax offsets, aligning with the nation’s goals for modernization and financial inclusion. • Takeaway: Tax incentives can motivate private-sector participation and foster a modern, inclusive payment ecosystem. 🌍 What Emerging Economies Can Learn To build a thriving digital payment ecosystem, nations can: 1. Eliminate Cost Barriers: Ensure low or nonexistent fees for consumers and merchants. 2. Leverage Public-Private Partnerships: Share costs through subsidies or tax incentives. 3. Prioritize Infrastructure: Develop secure, interoperable systems that scale effectively while earning user trust. 4. Promote Awareness: Educate citizens, especially in underserved areas, to build trust and adoption. 🌟 The Vision for a Cash-Lite Future Affordable, inclusive, and innovative payment systems are the cornerstone of a cash-lite economy. Emerging markets can draw inspiration from Tanzania, India, Brazil, and Algeria to empower citizens, modernize financial systems, and unlock economic potential. 💡 What do you think? Could these strategies work in your country? Let’s exchange ideas and shape the future of payments together! #DigitalPayments #FinancialInclusion #EmergingMarkets #Tanzania #India #Brazil #Algeria #Innovation #CashLiteEconomy

Financing Agricultural Trade in Africa: Challenges and Opportunities Agriculture is the backbone of many African economies, contributing to 23% of sub-Saharan Africa's GDP and employing more than 60% of its population. 1. Challenges in Financing Agricultural Trade a. Limited Access to Credit: One of the biggest challenges facing African farmers and agribusinesses is the lack of access to credit. Financial institutions often view agriculture as a high-risk sector due to factors like unpredictable weather, volatile commodity prices, and insufficient collateral. As a result, only 6% of total commercial lending in Africa goes to the agricultural sector. b. Lack of Financial Infrastructure: Many rural areas, where agriculture is most concentrated, have limited access to formal banking and financial services. With 57% of Africans unbanked, smallholder farmers are often forced to rely on informal sources of financing, which can be unreliable and expensive. c. Climate Risks: Africa’s agriculture is heavily dependent on rain-fed farming, making it vulnerable to climate change. Droughts, floods, and other climate-related events can devastate crops and reduce the ability of farmers to repay loans, increasing the risk profile for lenders. 2. Opportunities in Financing Agricultural Trade a. Digital Financial Services: The rise of mobile banking and digital financial services offers a promising solution to the financing gap. Platforms like M-Pesa in Kenya and EcoCash in Zimbabwe allow farmers to access loans, insurance, and payments via their mobile phones. According to the World Bank, 38% of adults in sub-Saharan Africa now use mobile money, providing a platform for innovative financing solutions for the agricultural sector. b. Agricultural Value Chain Financing: This model involves providing financing to all actors along the agricultural value chain, including input suppliers, processors, and exporters. Value chain financing reduces risks for financial institutions by leveraging the relationships between these actors, ensuring that loans are used efficiently and repaid. c. Blended Finance: Blended finance, which involves combining public and private capital to reduce investment risks, is becoming an increasingly popular approach to financing agricultural trade in Africa. In 2020, the African Development Bank (AfDB) launched the Africa Agriculture Transformation Fund (AATF), which mobilizes public funds to attract private investment in agriculture. This fund aims to raise $500 million to support agricultural value chains, boost productivity, and promote exports. Conclusion Financing agricultural trade in Africa presents both challenges and opportunities. While limited access to credit, underdeveloped financial infrastructure, and climate risks hinder the sector’s growth, innovative solutions like digital financial services, value chain financing, and blended finance offer hope for the future.