Fintech enablement partner, Ukheshe has taken a collaborative approach to its expansion strategy in East Africa, which is already reaping benefits.
The company has expanded into five core East African markets, including Kenya, Tanzania, Uganda, Rwanda and DRC, and has established partnerships with local companies to leverage local knowledge.
Ukheshe Vice President of Business Development – East Africa, Anthony Karingi, said the market is very developed when it comes to cashless systems and digital payments, making it an attractive target for the company’s expansion efforts.
“One reason Ukheshe has chosen to focus its expansion efforts on East Africa is that the market is very developed when it comes to cashless systems and digital payments. Mobile money, for example, is available across all our core East African markets and is ahead of the curve in many – even in comparison to South Africa,” said Mr Karingi.
Sub-Saharan Africa accounts for nearly 70% of the total amount of global mobile money transactions, totaling $1 trillion, and with rapid growth comes increased regulatory scrutiny.
Having local partners is crucial for fintechs as regulators are still trying to find a balance between protecting consumers and not stifling innovation.
“This makes having local partners and feet on the ground in these new markets even more important, as regulators are still trying to find that fine line between protecting consumers and not stifling innovation. That balance is a challenge, and new operators must stay on top of changing local regulations and compliance requirements. Regulators will also need to ensure that no one enjoys an unfair advantage, which is unfortunately still the case in some markets,”
Ukheshe collaborates with established partners in each East African market it enters, assisting fintechs, financial institutions and MNOs in driving their vision and goals using their licenses, customers, and local knowledge.
The approach allows Ukheshe to deploy its solutions and scale more quickly while enriching its partners’ offerings through innovative products.
“We invest in infrastructure, capacity building, and resources. This not only builds our collaborative local footprint but strengthens the partnership and both our offerings to our customers.”
In the next five years, Mr Karingi believes that more agile fintechs will take over from mobile money operators and telcos, with interoperability becoming a key selling differentiator.
“The best and most exciting part is that there is no script. We’re all building the plane as we fly, venturing into uncharted territory,” he said.