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In its quest to establish Kigali as a prominent technology center for African companies, Flutterwave, along with other leading fintechs in Africa, is turning to the ambitious East African country to solidify their operations.
Flutterwave has been operating in Rwanda since 2020, and now the company aims to deepen its roots by designating it as a settlement hub for payment operations in the region. In April 2023, Oluwabankole Falade, Flutterwave’s Chief Regulatory and Government Relations Officer, expressed the company’s commitment to open an office in Kenya and make it their regional hub.
However, Flutterwave has faced challenges in obtaining a payment provider license in Kenya due to ongoing lawsuits and allegations of money laundering. While Flutterwave denies the allegations and some lawsuits have been withdrawn, others are still in progress within Kenya’s legal system.
Kigali Secures a Victory with Flutterwave
In March, Flutterwave announced the acquisition of Electronic Money Issuer (EMI) and Remittance licenses in Rwanda. These licenses enable Flutterwave to hold money in wallets, similar to mobile money providers, and process cross-border transactions. Flutterwave’s association with Rwanda dates back to 2019 when the company obtained a payment service provider license, making it the first African country, after Nigeria, where Flutterwave received such a license. Flutterwave’s CEO expressed enthusiasm, stating, “Rwanda is significant for us because it is one of the few markets where we have obtained every license imaginable.”
Flutterwave plans to establish a financial operations center in Rwanda to handle settlements across the region. The company has received ample support to pursue this endeavor, and it aligns with the market readiness and potential for growth in Rwanda.
Although Flutterwave acknowledges that Rwanda is a relatively small market, it recognizes the country’s ambition to become a premier destination for foreign investment funds management within Africa.
African Fintechs Turn to Kigali
Kigali has attracted other African fintech companies as they expand their operations across the continent. Despite Rwanda’s smaller population and economic size compared to Egypt, Nigeria, Kenya, and South Africa, it has gained appeal among fintech firms due to strong regulatory reforms and its commitment to becoming an international financial center, particularly for financial technology firms.
Rwanda’s government has implemented numerous business-friendly laws in the past three years to create an attractive environment for firms seeking solid legal and governance frameworks for their African operations. This effort has garnered support from organizations such as the Qatar Financial Centre, Britain’s Jersey Finance, and Singapore’s Monetary Authority.
At the recent Inclusive Fintech Forum in Kigali, MFS Africa, NALA, and ChipperCash (which recently launched operations in Rwanda) were among the fintech companies that established a presence in the country. During the forum, Dare Okoudjou, the founder and CEO of MFS Africa, urged the presidents of Rwanda and Zambia to create bilateral agreements allowing fintech license “passporting,” enabling licensed fintech companies in one country to operate in the other.
Kigali’s International Financial Centre, launched in early 2020, has made significant strides in a short period. The city has enacted or reformed laws, forged partnerships, and gained recognition. In the Global Financial Centre Index by Z/Yen, Kigali ranks higher than Kuwait City in the Middle East, Nairobi, and Lagos, trailing only Mauritius, Cape Town, and Johannesburg.
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