FSD Africa invests $3.2 million in two African fintech firms based in Nigeria.



Two African fintechs, MFS Africa and Frontclear have received $3.2 million in investments from FSD Africa Investments.

While MFS Africa, received a $1.2 million follow-on investment from FSD Africa Investments, to support the implementation of a new partnership with Visa which will have a significant improvement on last-mile consumers; Frontclear got $2 million to improve efficiencies and boost investments from the private sector.

Established in 2014, MFS Africa, which currently connects over 180 million mobile wallets in Sub-Saharan Africa, partners with banks, mobile operators and money transfer companies to transact across several platforms and operators including mobile money, e-commerce, peer-to-peer messaging platforms and money transfer.

It has offices in Mauritius, Accra, Cameroon, Nigeria and South Africa.

Frontclear was established in 2015 to build a more inclusive market by supporting interbank lending between domestic banks.

As of January 2020, Frontclear had mobilised USD$1 billion in interbank credit through the issuance of USD$590 million in guarantees. While active in emerging markets and developing countries around the world, 61% of Frontclear’s portfolio is in Africa, in countries including Ghana, Kenya, Nigeria, Tanzania, Zambia and Egypt.

Anne-Marie Chidzero, Chief Investment Officer, FSD Africa Investments, said: “MFS Africa and Frontclear are two firms that with the right support could have a changing impact on Africa’s financial markets.