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Kerry’s Rwanda Investment: A Game-Changer for East Africa’s Food Manufacturing Sector

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Kerry, the global leader in taste and nutrition, has just taken a bold step by opening its latest taste manufacturing facility in Kigali, Rwanda. While this move strengthens Kerry’s growing footprint in East Africa, it also sends a powerful message about the future of the African food and beverage industry, highlighting the critical need for local production capabilities to meet the continent’s growing demand for high-quality food products.

Rwanda, with its rapidly expanding food processing sector, is emerging as a key player in East Africa. Kerry’s decision to establish a manufacturing presence in the country reflects the company’s broader strategy to align its production with the continent’s evolving needs. This facility will serve as a hub for Kerry’s locally tailored solutions, which aim to meet regional tastes and preferences. But more than just another expansion in the region, this move signals the increasingly attractive potential of African markets, especially for international companies looking to scale in emerging economies.

Kerry opens first taste manufacturing facility in Rwanda

The facility, located in Kigali, marks a significant milestone for Kerry, who has been in Africa since 2018. Its broader ambition is clear: to deepen its engagement in emerging markets, drive growth, and contribute to the sustainable development of the food and beverage sector across the continent. It’s no surprise that Kerry is keen on Africa, given the rapid urbanization, rising disposable incomes, and the increasing preference for more diverse food options. In fact, Kerry is now one of the few global taste companies to produce locally in East Africa, a strategic advantage in a market where localization and understanding of consumer behavior are paramount.

But let’s be clear—this move is more than just a sign of Kerry’s growing confidence in East Africa. It’s also a signal that the food manufacturing sector in Africa is undergoing significant transformation. Countries like Rwanda, with their improving infrastructure, growing middle class, and favorable policies towards foreign direct investment, are becoming hubs for food innovation. And yet, this transformation isn’t without its challenges.

The question remains: How many more international companies will follow Kerry’s lead in establishing manufacturing plants within Africa itself, instead of relying on exports? The shift towards local production not only reduces logistical costs but also responds to Africa’s urgent need for self-sufficiency in food production, especially as the continent becomes a larger part of global food supply chains.

Rwanda’s thriving food processing industry offers a glimpse into the future of the sector. However, as Kerry’s investment shows, it also underscores a crucial issue: the need for governments and private investors to continue supporting the local manufacturing ecosystem. Infrastructure improvements, local talent development, and enhanced agricultural capabilities are key to sustaining this momentum. Kerry has already committed to building partnerships with local suppliers, expanding local sourcing, and creating jobs through upskilling initiatives. Yet, we must ask, is it enough? How can more businesses and governments collaborate to boost the industry’s potential, ensuring that Africa isn’t just a consumer of food products but a strong, self-sustaining producer?

From a sustainability standpoint, Kerry’s facility also takes a step forward by ensuring zero waste to landfill and implementing energy-efficient practices. This is not just good business but a necessity in the current global context, where sustainability is no longer a “nice-to-have” but a core element of corporate responsibility.

Kerry’s new venture in Rwanda is not just a win for the company but also a crucial benchmark for the African food and beverage sector. It offers critical insights into the future of manufacturing on the continent and serves as a model for other international players to consider. The next question is: will other global food giants follow Kerry’s example, or will Africa remain at the mercy of foreign imports?

As East Africa continues to grow, the key will be how local governments, businesses, and global companies navigate these challenges. The potential for growth is immense, but it will require substantial investment, innovation, and a commitment to building sustainable, localized solutions. Kerry’s expansion into Rwanda may just be the beginning of a much larger shift, one that could reshape the landscape of food manufacturing across the continent.

Paniel Meat Processing – Transforming Africa’s Meat Supply Chain

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Paniel Meat Processing (PMP), established in 2012, has emerged as a pivotal force in Rwanda’s meat industry, significantly influencing both the local and regional food sectors.

By 2024, the company expanded its reach by listing on the Stock Exchange of Mauritius, underscoring its substantial growth and regional impact. ​PMP’s innovative business centers on integrating livestock production with meat processing, ensuring a consistent supply of quality meat products. The company collaborates with thousands of smallholder farmers through its Livestock Bank initiative, providing them with high-quality breeding stock, animal feed, veterinary care, and training. This partnership enhances local livestock production and secures PMP’s supply chain. ​

Initially focused on pig farming, PMP diversified its offerings to include beef, lamb, goat, and chicken products, catering to a broad consumer base. The company operates butcheries in key Rwandan cities and exports products to neighboring countries, including the Democratic Republic of Congo, the Republic of Congo, Gabon, and Benin. ​

Impact on the Food Sector

PMP’s contributions have profoundly impacted Rwanda’s food sector. By offering a variety of affordable meat products, including sausages, meatballs, and burgers, the company has increased meat consumption in a country where the average per capita consumption was previously low. This increase addresses protein deficiency issues and promotes better nutrition among the population.

The company’s focus on value-added products has spurred the development of the local meat processing industry, encouraging other businesses to innovate and meet rising consumer demand. PMP’s expansion into regional markets has also positioned Rwanda as a competitive player in the African meat industry, contributing to economic growth and job creation.​

To enhance distribution efficiency, PMP established TRUK Rwanda, a logistics company specializing in refrigerated transportation and cold storage. TRUK supports the movement of perishable goods across East and Central Africa, addressing logistical challenges and ensuring product quality.

Paniel Meat Processing’s innovative integration of livestock farming and meat processing has transformed Rwanda’s meat industry, offering affordable, high-quality products that meet evolving consumer preferences. Its influence extends beyond national borders, contributing to regional economic development and positioning Rwanda as a key player in Africa’s agribusiness sector.

Angola Projects 3.61% Economic Growth in 2025 Amidst High Inflation

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Angola has released its 2025 macroeconomic outlook, projecting economic growth of 3.61%, according to the government’s recently shared Macroeconomic Executive Program.

The forecast, presented during a session of the Economic Commission of the Council of Ministers in Luanda, paints a mixed picture: promising growth momentum driven by the non-oil economy, but also persistent inflation expected to hit 18.4% by year-end.

This signals cautious optimism in a country still grappling with the aftershocks of volatile oil prices and structural economic imbalances. Angola’s gross domestic product grew by 4.4% in 2024 — a significant leap from the modest 0.9% expansion in 2023, suggesting that recent reforms and diversification efforts may be gaining traction. However, inflationary pressures remain a persistent threat, casting a long shadow over consumer confidence and spending power.

A Shift Away from Oil: The Rise of the Non-Oil Sector

One of the most noteworthy aspects of the forecast is the shift in growth drivers. Angola expects its non-oil sector to expand by 5.76% in 2025, helping cushion the impact of a projected 1.82% contraction in the oil and gas sector. This signals a gradual, though still fragile, diversification of the Angolan economy — an objective the government has long pursued to reduce overreliance on crude exports.

The expected rise in agriculture, manufacturing, construction, and services points to a reorientation of economic priorities. If this momentum is sustained, Angola could see stronger domestic value chains, job creation outside of oil, and a more resilient economic base. For local businesses and investors, this represents an opportunity to tap into emerging sectors that have traditionally been overlooked in favor of oil-related ventures.

Inflation Still a Drag on Households and Businesses

Despite the relatively positive growth forecast, the elephant in the room remains inflation. With prices expected to rise 18.4% over the course of 2025, the cost of living for ordinary Angolans will continue to soar — a trend that threatens to erode the benefits of GDP growth.

High inflation squeezes household incomes, diminishes purchasing power, and makes daily essentials more expensive. For businesses, especially small and medium enterprises, it means thinner profit margins, rising input costs, and tighter consumer demand. Unless mitigated by wage adjustments or targeted subsidies, this inflationary environment could undercut social stability and hinder real economic gains.

Investment Implications and the Policy Challenge

For investors, Angola’s growth story remains complex. On one hand, the strong performance of the non-oil sector creates compelling opportunities, particularly in agriculture, fintech, telecoms, and light manufacturing. On the other hand, inflation and structural inefficiencies still pose considerable risks. The government’s ability to manage monetary policy, stabilize prices, and promote a conducive investment climate will be critical in translating headline growth into meaningful development outcomes.

L’Oréal Egypt Gets First Ever Egyptian Managing Director, Mohamed ElAraby

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Mohamed ElAraby appointed as L’Oréal Egypt

​L’Oréal Egypt has marked a significant milestone by appointing Mohamed ElAraby as its new Managing Director, the first Egyptian national to assume this leadership role.

With over 15 years of experience in the beauty industry, ElAraby is poised to steer the company toward enhanced growth and innovation, strengthening L’Oréal’s market presence in Egypt and contributing to the local economy.

ElAraby’s extensive background encompasses both regional and global markets, equipping him with the expertise to navigate Egypt’s dynamic beauty sector. His career at L’Oréal began in 2010, and he has since held several key positions. Notably, as Marketing Manager for Garnier-Maybelline, he played a pivotal role in launching the Maybelline brand in Egypt. In 2014, he transitioned to L’Oréal Paris in Paris as Marketing Manager for the Middle East and Africa region. By 2017, ElAraby was appointed General Manager for L’Oréal Dermatological Beauty in Egypt, and later, in 2020, he took on the role of General Manager for L’Oréal Dermatological Beauty in the Middle East.

Expressing his enthusiasm, ElAraby stated, “I am honored to be the first Egyptian Managing Director of L’Oréal Egypt. Throughout my career at L’Oréal, I have been grateful for the trust, support, and invaluable experiences that have prepared me for this significant opportunity.”

ElAraby’s appointment reflects L’Oréal’s commitment to nurturing local talent and underscores the company’s dedication to the Egyptian market. His leadership is expected to drive innovation and excellence, aligning with L’Oréal’s global vision of creating beauty that moves the world.

Egypt’s Inflation Drops Sharply — Economic Recovery Underway

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Afrikan Insights
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Egypt has recorded one of its most significant economic milestones in recent years, as annual urban consumer price inflation fell to 12.8% in February, down from 24% in January.

This sharp deceleration — faster than even the most optimistic forecasts — suggests a turning point for a country that has spent years battling high inflation, currency instability, and structural imbalances.

The fall in inflation is largely attributed to a statistical base effect, reflecting the fact that the sharp price hikes of the past two years are now cycling out of the year-on-year comparisons. In essence, prices are still high, but the rate of increase is slowing because the comparison point from last year was already very elevated. This technical effect has amplified the perceived drop in inflation, making the numbers look rosier than they might feel for everyday Egyptians.

However, it would be short-sighted to credit the base effect alone. Egypt’s economic policymakers have been actively working to bring inflation under control, especially under the watchful eye of international lenders like the IMF. The Central Bank of Egypt has maintained a tight monetary policy, holding interest rates at a high 28.25% for overnight lending and 27.25% for deposits. This strategy has aimed to curb demand-driven inflation by making borrowing more expensive and saving more attractive. While painful in the short term, especially for small businesses and consumers, such measures have been necessary to rein in price pressures and stabilize the currency.

There are broader macroeconomic reforms underway as well. In March, Egypt’s government approved a draft 2025/2026 budget worth EGP 4.6 trillion (around $91 billion), which emphasizes fiscal tightening and reducing the budget deficit. This is part of its broader agreement with the IMF — a program that has unlocked a $1.2 billion disbursement to support the country’s economic reform trajectory. These funds not only ease Egypt’s short-term liquidity constraints but also send a strong signal to investors about the country’s commitment to stabilizing its finances.

From a market perspective, the cooling inflation is a positive signal for both local and international stakeholders. Lower inflation improves consumer purchasing power and helps businesses plan more effectively. For investors, the easing of inflation could pave the way for future interest rate cuts — a move that would reduce borrowing costs and potentially spark more private sector activity. This is particularly crucial for Egypt’s ambitious plans to boost manufacturing, expand exports, and attract foreign investment into infrastructure and energy sectors.

However, the picture is not entirely rosy. Inflation, though easing, remains high by historical standards. The drop also comes at a time when global uncertainty remains elevated — with geopolitical tensions, currency volatility, and disrupted trade routes (including via the Suez Canal) still looming over Egypt’s external balance. Additionally, the country’s debt burden continues to raise concerns, with interest payments consuming a significant portion of public spending.

Kenya’s Central Bank Revises 2025 Growth Outlook Upward to 5.6%

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Kenya’s central bank has revised its outlook for economic growth in 2025, projecting a modest uptick to 5.6%, up slightly from the 5.4% expected this year. At first glance, this sounds like a positive turn. But in a region where economic potential often outpaces real performance, the numbers alone tell only part of the story.

What matters more is the broader context — the pressures the economy is facing, the levers being pulled to stimulate activity, and what this growth rate truly means for businesses, consumers, and investors navigating Kenya’s evolving landscape.

Announcing the projections at a press briefing in Nairobi, Central Bank Governor Kamau Thugge pointed to a few bright spots driving the improved outlook: the continued resilience of key service sectors, a rebound in agricultural productivity, and an expected recovery in credit to the private sector. He also highlighted gains in export performance, boosted by global demand and competitive positioning in markets like tea, horticulture, and tech-enabled services.

Kenya’s diversified service sector — spanning tourism, financial services, ICT, and retail — has long been a steady engine of growth. And with agriculture rebounding from drought conditions and erratic weather in recent years, the twin engines of rural demand and food supply stability are beginning to rev up again.

But behind this cautious optimism lies a deeper question: is a projected 5.6% growth rate enough to meaningfully transform livelihoods and reduce economic pressures in a country of over 55 million people?

Private Sector Credit Is Moving, But Slowly

A key assumption underpinning the CBK’s projection is a rebound in credit to the private sector. After a period of high interest rates and tight liquidity, the monetary policy stance is beginning to loosen. In fact, the central bank has now cut its benchmark lending rate for the fifth straight meeting, signaling a commitment to stimulating demand.

This is welcome news for businesses — particularly SMEs — who have struggled under the weight of expensive borrowing and limited access to capital. However, the effectiveness of rate cuts depends not just on policy, but on confidence. Lenders must be willing to take risk, and borrowers must see opportunity worth financing. It’s a delicate dance — and right now, the rhythm is still uneven.

Credit may be picking up, but not fast enough to power the kind of private sector-led expansion Kenya needs. Structural bottlenecks — from regulatory red tape to payment inefficiencies and policy unpredictability — continue to dampen entrepreneurial momentum.

External Risks Cloud the Horizon

The Central Bank Governor, Thugge was right to flag the “external and domestic risks” that could derail the growth trajectory. Chief among them are geopolitical conflicts and global trade tensions. As global economies retrench and nationalism shapes trade policy, particularly in the U.S., Europe, and China, Kenya’s position as a mid-sized exporter in a global system becomes more precarious.

Meanwhile, shocks in global commodity markets, such as rising oil prices or disruptions in fertilizer supply chains, can quickly eat into Kenya’s import bill and fuel inflation. Add in the local factors — rising debt servicing costs, climate variability, and political pressure around the 2027 election cycle — and the margin for error becomes very thin.

What the CBK forecast tells us is that the foundation is stabilizing. What it does not tell us is whether the country is doing enough to move from recovery to true growth.

For businesses and investors, this moment calls for measured optimism. The signs of recovery are real — but so are the risks. Navigating this space will require agility, a keen eye on both domestic and global shifts, and a strong understanding of Kenya’s fast-evolving consumer and enterprise dynamics.

FNB Revises South Africa’s Growth Forecast as 2025 Outlook Darkens

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FNB economists have issued a cautious but necessary downgrade to their GDP growth forecasts in South Africa, reflecting the country’s mounting vulnerabilities — both from within and beyond its borders.

According to their latest outlook, real GDP growth is now expected at 1.6% in 2025, 1.7% in 2026, and 2.0% in 2027. These revisions are subtle on paper, but they carry weighty implications for businesses, investors, and policy watchers who are navigating an increasingly complex environment.

A central driver of the downgrade is weak household demand, which continues to suffer under the weight of rising costs, stagnant income growth, and the compounding effects of fiscal drag. The government’s proposed VAT hike — a half-percentage point increase in 2025 and another in 2026 — will further tighten consumer wallets at a time when confidence is already fragile.

While inflationary pressure has moderated — with 2025 projections revised downward to 3.8% — the benefit is being largely offset by structural challenges. These include persistent policy uncertainty, unreliable energy supply, and slow-moving economic reforms.

The consumer sector, which has been sluggish for the better part of two years, remains central to any hope of recovery. Yet even here, the signals are mixed. While there has been a rebound in vehicle sales and a modest uptick in consumer lending, analysts warn that these gains are fragile. Any optimism must be tempered by the reality of higher taxes and stagnant job creation.

Trade Pressures Escalate

More troubling, perhaps, is the deteriorating global trade outlook. A major development came in early April 2025 when U.S. President Donald Trump reintroduced sweeping tariffs, including a 30% levy on South African exports. This announcement has sparked fresh anxiety around South Africa’s future under AGOA — the African Growth and Opportunity Act — which provides duty-free access to the U.S. market for a range of African exports.

South Africa exported over R156 billion worth of goods to the U.S. in 2024, including precious metals, machinery, and agricultural products. The scale of these exports makes any disruption a serious blow — not just for corporate exporters, but for the broader supply chains and employment pipelines they support.

Exporters now face the dual challenge of declining competitiveness in the U.S. market and the urgent need to diversify trade relationships — a tall order in an already crowded global marketplace.

Investment and Reform Stuck in Neutral

Despite the growing urgency for reform, FNB’s economists remain skeptical about political momentum in the short term. While there is some hope for a rebound in fixed investment — especially after a 3.7% contraction last year — the outlook is weighed down by a trust deficit between government and business, and by uncertainty around South Africa’s regulatory direction.

The much-needed “accelerated reform” scenario appears increasingly remote. Without it, potential gains in energy, infrastructure, and public sector efficiency will remain slow-moving at best.

The challenge for businesses and investors is less about dramatic shocks and more about navigating persistent underperformance. Markets, both domestic and international, are signaling the need for clarity and courage in economic policy. Instead, what they’re getting is hesitation, fragmentation, and delay.

In this environment, strategic patience and scenario planning become essential. Local businesses must continue to hedge against consumer weakness and regulatory volatility. Multinationals and investors should be weighing the risks of trade exposure while staying alert to potential reform signals — however faint they may be.

Umba Doubles Down on Kenya with $5M Loan Boost

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Kenya’s fintech space just got another vote of confidence. Umba, a digital-first bank that has quietly but confidently carved out a space in the local lending market, has secured a $5 million debt facility from U.S.-based Star Strong Capital. The funds will go directly toward expanding Umba’s loan book in Kenya, where demand for SME and vehicle financing is outpacing supply.

But beyond the numbers, this announcement reveals a more important strategic pivot: Umba is tightening its focus, pausing pan-African expansion plans to go deeper in two core markets — Kenya and Nigeria. In a continent where fintechs often stretch too thin too fast, this focused approach may prove to be the winning formula.

Founded in 2020 by Tiernan Kennedy and Barry O’Mahony, Umba began as a credit-led fintech operating in Nigeria. The model was familiar — offer small loans through a slick mobile app and build data-driven credit profiles. But what sets Umba apart is its evolution.

In 2022, Umba acquired Daraja Microfinance Bank, giving it a rare microfinance banking license in Kenya — a market tightly controlled by the Central Bank. This acquisition turned out to be a masterstroke, allowing Umba to operate as a full-service digital bank when new banking licenses were otherwise frozen.

Today, Umba’s offering has expanded well beyond personal loans. Customers now have access to fixed deposits, savings accounts, business banking, and more — all through a mobile-first experience tailored to Kenya’s financial behavior.

In a market where M-PESA processes nearly 60% of GDP, Umba doesn’t try to compete with mobile money. Instead, it builds around it, offering deeper banking functionality and positioning itself as the digital alternative to traditional banks.

Funding Real-World Needs

Unlike many consumer lending startups that chase scale without grounding, Umba’s loan portfolio is rooted in productivity. The bulk of its loans support vehicle financing and SME operations — areas where capital has a tangible impact on livelihoods.

Umba co-owns financed vehicles, a model that provides real asset backing and allows the company to recover in case of default. This structure, along with its on-the-ground agent network (now over 5,000 strong), has helped contain the kind of default risk that has derailed similar ventures elsewhere in Africa.

Agents don’t just onboard users; they also become customers themselves. Car dealerships that offer Umba loans, for instance, receive their commissions in Umba accounts. This embedded financial loop creates a natural flywheel of engagement and trust — rare commodities in African banking.

What’s most striking about Umba’s story is its willingness to pause geographic expansion. Many African fintechs spread themselves thin chasing continental scale. Umba is opting for depth over breadth — and that may be its most valuable differentiator.

By concentrating on Kenya and Nigeria, two of Africa’s most advanced yet underserved financial markets, Umba can refine its model, build regulatory trust, and optimize its capital allocation. With high impairment rates plaguing Africa’s credit ecosystem, operational discipline is not just smart — it’s necessary for survival.

Star Strong Capital sees the promise. Its founder and CEO, Spring Hollis, described Umba as a company “at the forefront of delivering accessible, affordable financial solutions to underserved markets.” That kind of conviction signals more than just a funding deal — it suggests a shared belief in Umba’s playbook.

The race to digitize Africa’s financial systems is far from over. But the terrain has changed. Investors are now rewarding execution, not ambition. Startups are being judged on fundamentals, not funding rounds. And scale, while still important, must come with real impact.

Umba’s disciplined approach offers a glimpse of what the next phase of African fintech could look like — embedded, hyper-local, and laser-focused on solving real problems with real products.

South Africa’s Stitch acquires Exipay – Indicating a Changing Fintech Strategy in Africa

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Cape Town-based fintech Stitch has made a bold play into the in-person payments space, acquiring local player Exipay and rebranding the business as “Stitch In-Person Payments.” It’s more than just a new product launch — it’s a signpost of where Africa’s fintech industry is headed.

The acquisition — whose financial terms remain undisclosed — gives Stitch a direct foothold in the physical payment infrastructure that continues to dominate much of Africa’s retail and service economy. While Stitch built its name in open banking and seamless digital payments, the new solution bridges a long-standing gap in its product offering: on-the-ground transactions.

By integrating Exipay’s tech and operations, Stitch can now offer a full-stack payment experience to large enterprises — from online checkout to card machines in-store — positioning itself as a single, streamlined provider for all transaction needs.

Why In-Person Still Matters in Africa

In developed markets, in-person payments might be seen as legacy infrastructure. But in Africa, where informal retail, cash-heavy economies, and inconsistent digital access still shape consumer behavior, physical payments are not going away anytime soon.

Retail, hospitality, and services industries across the continent remain deeply reliant on point-of-sale (POS) systems and in-person interfaces. Yet many of these businesses face high transaction failure rates, fragmented payment systems, and limited data visibility.

By launching Stitch In-Person Payments, the company is betting that enterprise customers want fewer providers, better uptime, and stronger integrations. According to Stitch, its platform reduces intermediaries and connects directly with banks and payment networks — a move that could offer better reliability and support for high-volume businesses.

This is not just a technical pivot; it’s a strategic recalibration based on where the market is.

A Race to Own the Full Stack

The Stitch-Exipay deal also signals a broader trend of fintech consolidation across Africa. Startups are no longer content with vertical slices of the payments market — they’re moving toward end-to-end infrastructure plays.

We’ve seen this before. Paystack, Flutterwave, and Chipper Cash have all expanded into adjacent services — lending, POS devices, and cross-border payments — in a bid to lock in large enterprise clients and increase lifetime value.

With Stitch now playing in both digital and physical transaction spaces, it enters a new league of competitive relevance. Its clientele already includes MTN, MultiChoice, SnapScan, and Yoco. Adding a robust in-person layer to that portfolio could make Stitch the go-to payments partner for many of Africa’s top-tier businesses.

The Funding Flywheel in Motion

Stitch’s trajectory has been fueled by strong investor backing. A $25 million Series A round in late 2023 — led by Ribbit Capital and supported by PayPal Ventures, CRE Ventures, and Raba Partnership — followed earlier investments that brought its total raised capital to $46 million.

This firepower enables strategic acquisitions like Exipay and supports Stitch’s expansion into high-potential markets such as Nigeria, where it entered with a $2 million seed extension in 2021.

This access to capital allows Stitch to do something many African startups struggle with: move quickly, buy rather than build when necessary, and scale without breaking operational continuity.

What Comes Next?

While this move strengthens Stitch’s domestic footprint in South Africa, it’s the regional implications that bear watching. If the model proves successful, Stitch could easily replicate the in-person play across key markets like Kenya, Nigeria, and Egypt — each with a strong enterprise base and high dependency on physical payment infrastructure.

More importantly, this expansion could support broader financial inclusion goals by normalizing digital payment systems in environments where they haven’t yet taken hold. Stitch’s technology, once limited to online and API-driven use cases, now has boots on the ground — quite literally.

The Big Picture

Stitch’s acquisition of Exipay reflects the next phase of fintech evolution in Africa: from pure tech play to infrastructure provider, from digital-only to omni-channel, and from startup to systems integrator.

It’s a reminder that while innovation matters, distribution, reliability, and market fit still win the day — especially in a continent where the customer journey often starts in-store, not online.

And for the wider ecosystem, it’s another sign that the race is on. The future of African fintech isn’t just about who builds the best app — it’s about who owns the rails, both digital and physical.

UAE-owned Maroc Telecom Ends Dispute With Inwi

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A long-standing feud in Morocco’s telecom sector has quietly ended — and the aftershocks may reshape the country’s digital infrastructure and its broader economic ties with the United Arab Emirates.

Maroc Telecom and Inwi, two of the country’s top telecom firms, have not only buried the hatchet after years of legal wrangling, but are now joining forces to build Morocco’s next-generation digital networks. The settlement ends a courtroom dispute that saw Maroc Telecom accused of anti-competitive practices and ordered to pay significant damages. But it’s the business pivot that follows — a pair of ambitious joint ventures — that may have the bigger, longer-term impact.

Under the agreement, the firms will collaborate on two major projects: FiberCo, which aims to connect 3 million homes with fibre optics in five years, and TowerCo, which will build 2,000 telecom towers within three years to accelerate the roll-out of 5G. These are not minor projects — they represent foundational infrastructure needed to drive digital transformation in Morocco, especially in underserved regions.

What makes this partnership even more notable is who’s behind it. Maroc Telecom is majority-owned by the UAE through its former state telecom monopoly, Etisalat (now E&), while Inwi is owned by the Moroccan royal holding company. That means this isn’t just a corporate handshake — it’s a diplomatic and economic signal.

Business Settlement, But Also Political Realignment

At first glance, this looks like a simple business deal: a financial dispute resolved, and a collaboration launched. But scratch deeper and you’ll see a strategic re-alignment at play.

For one, the compensation Maroc Telecom will now pay Inwi — MAD4.38 billion ($455 million) — is significantly lower than what the courts initially ordered (MAD6.38 billion, or $661 million). That discount suggests a pragmatic shift in mindset: compromise now to enable bigger shared gains in the future.

More importantly, this deal paves the way for greater UAE investment into Morocco’s strategic sectors. In recent years, the UAE has gone from being a passive investor to an active economic partner. In 2023 and 2024, both countries signed a Comprehensive Economic Partnership Agreement (CEPA), pledging deeper collaboration across infrastructure, trade, energy and logistics. The telecom joint ventures now look like one of the earliest real-world outcomes of that agreement.

Why This Matters for the Market

For Morocco, this joint venture may act as a blueprint for how future public-private collaboration could roll out across sectors. The scale and ambition of FiberCo and TowerCo mirror the country’s digital goals — universal internet access, broader 5G coverage, and improved connectivity for businesses.

For investors and observers, it’s a clear reminder that Morocco is positioning itself as a hub between Arab capital and African opportunity. The UAE, already the largest Arab investor in Morocco with $15 billion committed, is reinforcing its presence with infrastructure that is essential to competitiveness in the digital age.

What this also suggests is a maturing of Morocco’s investment environment — one where disputes don’t just drag through courts, but are resolved in ways that unlock bigger strategic opportunities.

Looking Ahead

Pending regulatory approvals, the success of FiberCo and TowerCo could open the door to further partnerships — possibly even cross-border ones, considering Maroc Telecom’s footprint across Francophone West Africa.

And while the legal battle may be over, the underlying message is that Morocco is now serious about building an investment climate where cooperation, not competition, drives sectoral progress.

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