Kenyan FinTech Dominates Nairobi Stock Exchange
Kenyan telecommunications provider Safaricom currently holds over half of the value of the Nairobi Stock Exchange (NSE). The company, owner of Africa's most successful fintech M-PESA, is valued at KES1.13trillion (US$10.9billion).
Business Insider Africa notes that the dominance of Safaricom is attributed to a bear run on the NSE which has led to a decearse in the market capitalisation of the other 62 listed companies.
M-PESA is an imporant ewallet service that is used across Africa and has been expanding to markets in Europe and Asia. The system allows people to send domestic and international remittances without having to have a bank account. Instead, the transaction can be facilitated with the tranferring of mobile phone credit.
Safaricom's H1 results showed that earnings from M-PESA were secdond only to profits from voice calls. Year end results posted for March 2019 showed to company revenues of KES251billion (US$2.4billion) with profits of KES64.3billion (US$621.2million) and a year on year growth rate of 14.7%
January 2019 saw the launch of Fuliza, in partnership with Commercial Bank of Africa and KCB Group. The system offers overdraft facilties on M-PESA accounts and could be a rival to debit and credit card systems due to the inclusive nature of the system.