In a significant move towards fostering financial inclusion in Africa, Renew Capital, an Africa-focused impact investment firm, has announced its investment in Affinity Africa, a pioneering digital bank targeting the unbanked population of the continent. With this investment, Renew Capital underscores its commitment to supporting innovative solutions that address the pressing need for accessible banking services in underserved communities.
Affinity Africa, founded with a bold vision to provide banking services to the 350 million adults still unbanked in Africa, operates as a full-scale digital banking platform. Offering a comprehensive suite of services including current, savings, and investment accounts, as well as transfer, payment, and loan facilities, Affinity stands out for its customer-centric approach and commitment to affordability.Tarek Mouganie, the group CEO and founder of Affinity Africa, expressed the company’s dedication to promoting financial inclusion by addressing the challenges faced by individuals and micro, small, and medium enterprises (MSMEs) across sub-Saharan Africa. “Our approach revolves around low-cost deposits, fully online digital channels, and becoming the most affordable MSME lender,” Mouganie stated, emphasizing the pivotal role technology plays in bridging financial gaps.
Renew Capital’s decision to invest in Affinity Africa reflects its confidence in the bank’s potential to drive positive change across the continent. JC Oelofse, Renew Capital’s head of investment, highlighted the ongoing need for progress in financial inclusion, noting that millions of individuals and businesses still lack access to essential banking services.
“Renew Capital is thrilled to invest in Affinity, our first investment in Ghana, and looks forward to supporting them as they look to expand across the continent,” Oelofse remarked. The investment aligns with Renew Capital’s mission to back innovative companies with high-growth potential, thereby facilitating sustainable social impact alongside financial returns.
Renew Capital manages investments made on behalf of the Renew Capital Angels, a global network of angel investors, foundations, and family offices. By partnering with Affinity Africa, Renew Capital aims to contribute to the broader goal of driving financial inclusion and economic empowerment across Africa.
As digital banks like Affinity continue to emerge as transformative forces in Africa’s banking landscape, the investment by Renew Capital signifies a significant step towards realizing the vision of a financially inclusive continent. With renewed support and resources, Affinity Africa is poised to expand its reach and impact, ultimately paving the way for greater economic opportunity and prosperity for millions across Africa.