Minka, a cloud-based fintech startup from Colombia, has announced its ambitious plans to expand operations into Africa. The company will begin its expansion by establishing a presence in Eastern and Southern African countries.
On Tuesday, July 2, 2024, Minka officially launched its services in East Africa, starting operations in Kenya, Tanzania, Uganda, and Ethiopia. The company also plans to extend its reach to Southern African markets, including Mozambique, Zambia, and Malawi.
Minka aims to replicate its successful model from Latin America in Africa, connecting central banks, financial institutions, and clearinghouses through shared and connected ledgers. Founded in Bogota in 2016, Minka secured $24 million in Series A funding in 2022, with investments from Tiger Global Management, Kaszec Ventures, and the FinTech Collective.
The fintech company’s entry into Africa is part of a broader trend of Latin American fintech firms tapping into the continent’s burgeoning digital payments market. In 2022, Brazilian payment company EBANX expanded into 11 African countries, and Uruguayan fintech dLocal received payment service provider licenses from the Central Bank of Kenya, the National Bank of Rwanda, and the Central Bank of Nigeria within a year.
Explaining Minka’s move into Africa, CEO Domagoj Rozic emphasized the company’s commitment to enhancing payment infrastructures across the Global South. “Low levels of financial inclusion, a heavy reliance on cash, and non-interoperable legacy payment systems are just a few of the issues our team in Latin America have successfully overcome and we believe it is our duty to continue creating solutions that benefit society,” Rozic said.
Minka is also banking on the demographic and market similarities between Latin America and Africa to drive its success in the new regions.
