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Fraud Emerges As a Leading Complaint Among Digital Financial Service Users Worldwide

By
Ojukwu Emmanuel
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0

Fraud has emerged as one of the most widespread consumer complaints facing digital financial service providers globally, according to GSMA “The State of the Industry Report on Mobile Money 2026”. With fraud-related losses estimated at nearly $500 billion worldwide, the scale of the challenge is immense.

In Sub-Saharan Africa, the situation is particularly concerning, as more than 30% of adults are believed to have received scam or online extortion messages. On a broader scale, cybercrime is projected to cost the global economy at least $10.5 trillion annually by 2025, equivalent to approximately $333,000 per minute.

Within the mobile money ecosystem, fraud manifests in multiple forms. The most prevalent typologies include impersonation, insider fraud, agent fraud, and cyber fraud. Identity fraud ranks as the most common, affecting about 90% of cases, followed closely by social engineering schemes at 88%.

Insider fraud accounts for 87%, while SIM swap fraud represents 79%, and cyber fraud stands at 60%. These figures highlight the increasingly sophisticated and diverse nature of threats facing digital financial systems.

AI and Machine Learning as Defensive Tools

To address rising fraud risks and strengthen consumer trust, mobile money providers are increasingly turning to artificial intelligence (AI) and machine learning (ML). These technologies enable the analysis of vast datasets to detect subtle anomalies that may indicate fraudulent activity.

For instance, M-PESA in Kenya has implemented AI-driven systems capable of identifying unusual transaction patterns. When a user initiates a transaction that deviates from their typical behavior, the system flags it for further review.

Similarly, Airtel Money Rwanda leverages machine learning algorithms trained on historical fraud data to predict and prevent future incidents. This approach allows for real-time transaction monitoring, enabling suspicious activities to be detected and addressed before financial harm occurs.

Awareness and Capacity Building

Beyond technological interventions, mobile money providers are also investing in awareness and education initiatives. These efforts aim to empower users, agents, and employees with the knowledge required to identify and avoid fraudulent schemes.

A notable example is MTN MoMo in Ghana, which launched the “Shine Your Eye” campaign in 2025. This initiative focuses on educating customers about common fraud tactics and encouraging vigilance in digital transactions. Training programs for agents and employees further strengthen the ecosystem by reducing vulnerabilities that fraudsters often exploit.

Regulatory Measures and Policy Interventions

Regulators are also playing a critical role in combating fraud through targeted policies and directives. In August 2025, the Central Bank of Nigeria issued a directive mandating the geotagging of all point-of-sale (PoS) terminals within 60 days.

This measure aims to curb fraud by eliminating the use of cloned or unauthorized terminals while enhancing the traceability of transactions in real time.

In addition to such measures, there is a growing emphasis on regulatory innovation. Initiatives such as regulatory sandboxes provide controlled environments where new fraud prevention solutions can be tested before full-scale deployment. These frameworks encourage innovation while maintaining oversight and consumer protection.

Cross-border collaboration is another critical strategy. As fraud increasingly transcends national boundaries, information sharing and coordinated responses are essential. Platforms like FRONTIER+ facilitate real-time intelligence exchange, enabling stakeholders to respond more effectively to emerging threats despite fragmented legal and regulatory environments.

Outlook

The fight against fraud in digital financial services will require a multi-layered and collaborative approach. As fraudsters continue to evolve their tactics, the integration of advanced technologies such as AI and ML will become even more critical. However, technology alone will not suffice.

Sustained investment in consumer education, stronger regulatory frameworks, and deeper collaboration between providers and regulators will be essential to building resilient financial ecosystems.

Women Increasingly Left Behind as Mobile Money Adoption Accelerates Globally- GSMA Report

By
Ojukwu Emmanuel
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0

Mobile money adoption continues to accelerate globally, with registered accounts surpassing 2.3 billion in 2025. Yet, beneath this impressive growth lies a widening gender gap that threatens to undermine the broader promise of financial inclusion.

According to analysis by GSMA “The State of the Industry Report on Mobile Money 2026″, women in low- and middle-income countries (LMICs) were 36% less likely than men to own a mobile money account in 2024, an increase from 30% in 2021.

This growing disparity is largely driven by the faster rate at which men are adopting mobile money services compared to women.

Structural Barriers Limiting Women’s Adoption

The gap is not incidental but rooted in a range of interrelated barriers that disproportionately affect women. These include limited awareness of mobile money services, lower perceived relevance, gaps in digital literacy and skills, and restrictive social norms. In many markets, mobile phone ownership among women still lags behind that of men, further compounding the challenge.

Despite these constraints, the benefits of mobile money for women are substantial. Access to such services enhances financial security, enables better household and business management, and builds resilience against economic and environmental shocks.

It also facilitates access to social transfers, strengthens economic identity, and improves adaptability to climate-related risks. Consequently, the persistent gender gap represents not only a social challenge but also a missed commercial opportunity for service providers.

Drawing on data from GSMA’s annual face-to-face consumer survey across ten countries in Africa and Asia—including Nigeria, Kenya, India, and Pakistan- the findings reveal a complex picture across the mobile money user journey from mobile ownership and awareness to account usage.

Mobile phone ownership, the first critical step, shows encouraging progress. In countries such as Nigeria, Ghana, and Kenya, ownership levels between men and women are nearly equal. However, significant gaps persist in markets like Ethiopia, Pakistan, Bangladesh, and India, where a notable proportion of women still lack access to mobile devices.

Awareness of mobile money services has improved in several countries, including Nigeria and Bangladesh, with women showing faster growth rates than men in some cases. Still, awareness gaps remain in most markets, particularly in India and Ethiopia. Even where awareness is high, it does not always translate into account ownership.

A considerable gender gap in mobile money account ownership persists in seven out of the ten surveyed countries. Pakistan records the highest disparity at 63%, while Ethiopia follows with a 56% gap. Encouragingly, Nigeria has seen notable improvement, with the gender gap narrowing significantly to 25% in 2025, and nearly half of women now owning accounts.

However, ownership alone does not equate to active usage. Across most countries, women are less likely than men to use their accounts regularly or engage in diverse transactions. This trend is evident even in more mature markets like Ghana and Kenya, where usage gaps are emerging despite parity in ownership.

Barriers to Deeper Engagement

Among individuals already aware of mobile money, the most commonly cited barriers to account ownership include a perceived lack of relevance, often driven by a preference for cash and insufficient knowledge or skills. These challenges are more pronounced among women, particularly in areas related to digital literacy and handset usage.

Cultural and social factors also play a role. In countries like Pakistan and Bangladesh, family disapproval significantly impacts women’s ability to adopt mobile money. Additionally, issues such as literacy gaps and limited access to SIM cards or mobile devices further hinder progress.

Outlook

Addressing the gender gap in mobile money requires targeted interventions across every stage of the user journey. Expanding mobile ownership among women, increasing awareness through tailored outreach, and improving digital literacy are critical steps. Equally important is addressing deep-rooted social norms that limit women’s financial participation.

For policymakers, financial service providers, and development organizations, the path forward lies in designing inclusive solutions that recognize and respond to the unique challenges faced by women. Closing this gap is not only essential for advancing gender equality but also for unlocking significant economic value.

As mobile money continues to reshape financial ecosystems across emerging markets, ensuring that women are not left behind will be key to achieving truly inclusive digital economies.

April Oil Shock Set to Deepen as IEA Warns of Historic Supply Crisis

By
Samuel Nwite
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0

The global energy crisis triggered by the Iran war is poised to worsen sharply in April, with the International Energy Agency warning that the supply shortfall next month could be twice as severe as in March.

The energy crisis has raised the risk of fresh inflation shocks, slower economic growth, and possible fuel rationing across vulnerable economies.

The warning from IEA Executive Director Fatih Birol is among the starkest assessments yet of the market fallout from the closure of the Strait of Hormuz, the world’s most critical oil transit chokepoint. Speaking on the In Good Company podcast, Birol said March’s disruption had been partially masked by cargoes that had already cleared Hormuz before hostilities erupted.

Those barrels are still reaching ports and refiners. But April will be different.

“The loss of oil in April will be twice the loss of oil in March,” he said, adding that the impact would be amplified by disruptions to LNG flows and refined products.

That observation is critical to understanding why markets may be underestimating the scale of the coming shock. March’s flows benefited from pipeline effects: oil and gas cargoes already at sea continued to arrive, temporarily cushioning the market. In April, that buffer largely disappears, meaning refiners in Asia and Europe are likely to confront the full force of the supply squeeze.

According to the IEA, more than 12 million barrels per day of oil supply have already been lost, a level Birol said exceeds the combined impact of the oil shocks of 1973 and 1979, as well as the gas disruptions that followed Russia’s invasion of Ukraine in 2022.

For context, each of the 1970s oil crises removed about 5 million barrels per day from the global market. This time, the world is dealing with more than that — and simultaneously facing LNG shortages, jet fuel constraints, and tightening diesel markets. That is why the IEA chief described the present disruption as potentially the biggest energy crisis in history.

The most immediate pressure point is refined products. Birol said shortages in jet fuel and diesel are already evident in Asia and are expected to spill into Europe by late April or early May. This matters because diesel is the backbone of freight, manufacturing, agriculture, and power backup systems in many economies.

A shortage here rapidly feeds through to food prices, logistics costs, and industrial output, making the inflationary implications significant.

Higher crude prices have already pushed U.S. gasoline prices above $4 per gallon, while Brent crude recorded a historic monthly surge in March before easing slightly. The knock-on effects are likely to be felt most acutely in emerging markets, where fuel imports account for a large share of trade balances and household budgets.

Birol explicitly warned that the crisis could cut economic growth in many countries, with emerging economies facing the greatest risk of dislocation. This is especially relevant for countries in Asia and Africa that rely heavily on imported fuel and LNG for power generation, transportation, and cooking gas.

The IEA is now openly considering another strategic stock release. Earlier this month, its 32 member states agreed to a record 400 million-barrel emergency release, the largest coordinated drawdown in the agency’s history.

But Birol was careful to frame that as only a temporary pain reliever.

“This is only helping to reduce the pain, it will not be a cure,” he said, making clear that the only lasting solution is the reopening of Hormuz.

That assessment is reinforced by fresh U.S. data.

The U.S. Energy Information Administration reported that U.S. crude production in January fell by 410,000 barrels per day, the sharpest monthly drop in two years, partly due to severe winter storms. At the same time, distillate demand surged as colder weather boosted heating and power generation needs.

This has left diesel inventories tighter than usual, just as the global market enters a war-driven supply crunch. The consequence is a market that is increasingly vulnerable not only to crude shortages but to a squeeze in refined fuels, which tends to hit consumers and industry faster than upstream disruptions.

The bigger story is that the world is moving from an oil price shock to a broader supply-chain and growth shock. This is no longer simply about crude prices rising on geopolitical fears. It is about physical shortages of energy products, higher transport and manufacturing costs, pressure on central banks, and the growing possibility that governments may be forced into demand-side measures such as reduced speed limits, remote work directives, and fuel rationing.

If April unfolds as the IEA now expects, analysts expect the economic consequences to extend far beyond energy markets.

Novastar Ventures Secures $147M to Back Sustainable African Tech Ventures

By
Ojukwu Emmanuel
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0

Novastar Ventures, one of Africa’s pioneering venture capital firms, has announced the final close of its third fund, the Novastar Ventures Africa People and Planet Fund III (NVIII) at $147 million.

The new fund represents a 40% increase from its predecessor, Novastar Ventures Africa Fund II, which closed at $108 million in 2020.

While it fell short of the original $200 million target amid a challenging global fundraising environment, the close underscores sustained investor confidence in African startups addressing climate change and social impact.

Speaking on the funds raised, Andrew Carruthers, Co-founder and Managing Partner at Novastar said,

“Novastar’s investment approach has always focused on transformative businesses that generate lasting financial, social, and environmental value for the common good. NVIII is a natural progression of that strategy, leveraging over a decade of experience backing businesses addressing Africa’s biggest challenges, while driving a sustainable development pathway for Africa, and the world.”

Unlike previous funds that concentrated on East and West Africa, Fund III adopts a truly pan-African strategy, deploying capital wherever high-potential opportunities emerge across the continent. The fund targets early- and growth-stage companies in sectors such as:

– Agritech and sustainable food systems.

– Electric mobility and green transport.

– Climate tech, circular economy, and decarbonization solutions.

– Broader impact-driven innovations that promote clean, inclusive, and sustainable development.

Investments will support technologies and business models that help African countries meet their Nationally Determined Contributions (NDCs) under the Paris Agreement, including electric vehicles, smart logistics, renewable energy integration, and low-emission agriculture.

A standout feature of Fund III is the significant participation from  Japanese institutions, signaling deepening Asia-Africa investment ties.

The Green Climate Fund also provided substantial backing, further reinforcing the fund’s climate credentials.

Partner Brian Odhiambo highlighted the strategic interest from Japanese investors: “They are looking for both commercial growth opportunities and ways to contribute to sustainable development in Africa.”

Novastar has moved quickly with capital deployment. The fund has already invested in six companies which include:

– Chowdeck and Breadfast — food delivery and quick commerce platforms enhancing urban logistics.

– Greenwheels and ARC Ride — electric mobility startups offering cleaner transport alternatives.

– MoPhones — smartphone distributor expanding digital access.

– Sistema.bio — climate-focused agritech providing biogas solutions for smallholder farmers.

These early bets reflect the fund’s thesis of supporting scalable businesses in areas like natural resource management, clean energy, sustainable agriculture, mobility, and inclusive services that build resilient, low-carbon economies across the continent..

Novastar was founded in 2014, to join and fuel an entrepreneurial revolution that is transforming markets and sectors in Africa. Leveraging local insights and networks, the VC firm partners with the bold entrepreneurs forging solutions to the continent’s biggest problems.

Outlook

The successful close of Fund III positions Novastar Ventures to play an even more influential role in shaping Africa’s climate and impact investment landscape at a time when global capital flows to emerging markets are becoming more selective.

Despite missing its initial $200 million target, the $147 million raise signals that investor appetite for mission-driven, climate-aligned African startups remains resilient, particularly in sectors tied to sustainability, food security, and clean energy.

As pressure mounts globally to meet climate goals, Africa is increasingly seen not just as a beneficiary of capital, but as a critical frontier for scalable, climate solutions.

The fund’s pan-African mandate is also likely to unlock opportunities in undercapitalized markets beyond traditional hubs like Nigeria, Kenya, and South Africa, potentially broadening the innovation map across the continent.

Afreximbank Secures Record $2bn Syndicated Loan, Affirming Investor Confidence Amid Global Headwinds

By
Samuel Nwite
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0

The African Export-Import Bank has closed its biggest syndicated borrowing ever, securing $2 billion in a three-year dual-currency facility that drew oversubscribed demand from 31 international lenders even as the Iran war roils energy markets and clouds Africa’s growth outlook.

The deal, signed March 9 and announced Monday, was originally shopped at roughly $1.5 billion but pulled in commitments topping $2.36 billion. Bank officials ultimately capped it at the $2 billion mark. The package splits into a $1.73 billion U.S. dollar tranche and a 228 million euro portion, with proceeds earmarked for refinancing existing debt and general corporate purposes.

Chandi Mwenebungu, the bank’s managing director for treasury and markets and group treasurer, called the outcome a powerful vote of confidence.

“This transaction is the largest ever syndicated facility borrowing by Afreximbank,” he said. “It is a clear demonstration of the global investors’ confidence in the Bank’s credit story. This, clearly, affirms the Bank’s robust and undisputed access to international markets.”

Mashreqbank, MUFG, and Standard Chartered ran the books as joint global coordinators, with Standard Chartered also serving as facility and documentation agent. Lenders came from across Europe, the Middle East, Asia, and Africa — a broad geographic spread that underscores the bank’s ability to tap diverse capital pools.

The raise lands just as the African Development Bank warns that a prolonged Iran conflict could shave as much as 1.5 percentage points off continental growth if the Strait of Hormuz remains disrupted beyond six months.

AfDB chief economist Kelvin Urama, launching the 2026 Macroeconomic Performance and Outlook report on Monday, said even a three-month flare-up would trim growth by 0.2 points, compounding already heavy debt-service burdens, falling foreign investment, and shrinking aid flows.

Yet the AfDB held its baseline forecasts at 4.3 percent for 2026 and 4.5 percent for 2027, describing the outlook as “broadly stable” but with risks clearly skewed to the downside.

For Afreximbank, the continent’s premier trade-finance institution, the fresh liquidity arrives at a moment when it is being asked to do more with less. The bank exists to bridge the chronic financing gaps that commercial markets ignore, channeling funds into intra-African trade, export development, and industrial projects under the African Continental Free Trade Area. With global supply chains fragmenting and energy costs climbing, that mandate has rarely felt more urgent.

The deal also comes against the backdrop of last year’s very public break with Fitch Ratings. In June 2025, the agency downgraded Afreximbank’s long-term rating to BBB- with a negative outlook, prompting the bank to end the relationship. Officials, including group chief economist Yemi Kale, have long argued that such assessments rely on models ill-suited to multilateral development banks and unfairly penalize African institutions despite solid fundamentals and counter-cyclical performance during the pandemic and earlier commodity shocks.

That the facility is oversubscribed and attracted top-tier arrangers suggests many global banks continue to price Afreximbank’s credit story on their own terms. The bank’s track record of timely repayments, strong capitalization, and pan-African mandate appears to carry more weight with lenders than any single rating agency’s verdict.

In practical terms, the $2 billion provides Afreximbank with additional dry powder to keep trade flowing at a time when many African economies face higher import bills for fuel and fertilizer and tighter dollar liquidity. It also signals to other African multilateral institutions that diversified, syndicated funding remains accessible even amid geopolitical turbulence.

Analysts believe the oversubscribed deal sends a clear signal: at least some deep-pocketed investors continue to see value in backing the institutions that keep African trade moving.

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