Once heavily reliant on venture capital and foreign investments, Africa’s credit-focused fintech companies are now taking a different path — venturing into public debt markets and mostly setting their sights on potential IPOs. By issuing commercial paper and exploring local stock exchanges, an increasing number of these firms are focusing on growth models that prioritize profitability and scale, rather than just valuation. This emerging trend signifies a subtle yet significant shift: the continent’s fintech landscape is starting to move past the hype of startups and is aiming for institutional credibility, sustainable returns, and the discipline of public markets.
In Egypt, Valu — a consumer finance platform best known for its “Buy Now, Pay Later” service — has been steadily expanding its footprint in capital markets. In late 2023, the company announced the closure of its 13th securitized bond issuance, valued at EGP 519.2 million (approximately $10 million), pushing its cumulative securitization total beyond EGP 10.8 billion (USD$211 million). It was the third transaction in a broader EGP 16 billion (USD$314 million) securitization program.
According to the company, the 13th issuance was structured into two tranches, backed by a receivables portfolio assigned to EFG Hermes for securitization. The offering includes a 6-month bond worth EGP 321.9 million (USD$6.3 million) with a Prime 1 (sf) rating, and a 12-month bond worth EGP 197.3 million rated Prime 2 (sf). These structures provide a degree of risk differentiation for investors while helping Valu maintain liquidity and fuel its consumer credit operations.
“This milestone showcases our ability to innovate and scale while maintaining a focus on financial accessibility and inclusion,” said Shokry Bidair, Valu’s CFO.
Last month, Valu’s parent company, EFG Hermes Holding, announced that it had received board approval to list the fintech unit on the Egyptian Exchange (EGX). The decision, which includes distributing a portion of EFG Hermes’ profits to shareholders as Valu shares, paves the way for the company’s transition from private finance to public trading.
With formal listing procedures now underway — including registration with the Financial Regulatory Authority (FRA) and preparation of the mandatory investor disclosures — Valu is positioning itself as one of the first Egyptian fintechs to reach this stage of public market maturity.
Further south, Nigerian digital bank FairMoney has been quietly building one of the continent’s most robust debt capital market profiles. Since its last equity raise — a $42 million Series B round led by Tiger Global in 2021 — the company has largely relied on commercial paper (CP) issuances to fund its operations and expansion.
According to the company’s latest disclosures, it raised ₦5.3 billion (USD$3.5 million) in April 2025 through an oversubscribed CP program. The offering included two tranches with 180-day and 270-day tenors and attracted near-total uptake, a strong indication of investor confidence in the company’s financial trajectory.
“Over the past year, we’ve seen substantial growth in both revenue and profitability. This oversubscription is a clear reflection of our improved financial health,” said Henry Obiekea, Managing Director of FairMoney Nigeria.
That confidence is underpinned by solid numbers. As of FY 2024, FairMoney reported a 56.76% year-on-year revenue growth and tripled its profitability relative to 2023. Its asset base expanded by nearly 60%, and key efficiency indicators — such as cost-to-revenue ratio and impairment charges — saw measurable improvements.
The company’s GCR credit rating was reaffirmed in November 2024, further strengthening its credentials in the debt capital markets. “The upward revision of our CP program to ₦10 billion (USD$6.2M) is a testament to our financial strength,” said CEO Laurin Hainy following the approval of its Series 2 CP issuance last August.
FairMoney is now considered one of Nigeria’s top digital lenders, serving both consumers and small businesses with instant loans, high-yield savings products, and payment services — all offered digitally via a mobile app. It has also introduced savings instruments such as FairSave, FairLock, and FairTarget, which promise returns of up to 28% per annum.
Another Nigerian fintech, CapitalSage Technology Limited, which owns Kolomoni Microfinance Bank, has also demonstrated the potential of public debt. The company recently celebrated the successful repayment of its fourth commercial paper valued at ₦2.5 billion ($1.5M), hinting at its commitment to fiscal responsibility. This achievement, coupled with a recent credit rating upgrade, highlights the growing confidence in CapitalSage’s sustainable growth model and its role in providing inclusive financial solutions across Africa.
However, this growing trend of fintechs utilizing public markets is not without its challenges. Regulators in both Egypt and Nigeria have recently introduced stricter rules governing the issuance of commercial paper and the securitization of financial rights. In Egypt, the Financial Regulatory Authority (FRA) issued Circular No. (7) of 2024, imposing tighter controls on securitization, particularly for companies outside the traditional non-banking financial sector. These new regulations demand more transparency and impose stricter conditions on the assets being securitized, requiring detailed electronic filings and guarantees of asset viability. While the FRA argues these measures are necessary to protect the financial market and ensure its integrity, some industry players may view them as potential hurdles that could slow down the pace of fundraising and innovation.
Similarly, Nigeria’s Securities and Exchange Commission (SEC) has also tightened regulations for commercial paper issuance. This move follows concerns raised by the National Pension Commission (PenCom) regarding the risk associated with pension funds investing in commercial papers issued by non-banking entities. The new SEC guidelines mandate a minimum shareholders’ equity for issuers, require independently audited financial statements, and stipulate that only companies with an investment-grade credit rating can issue commercial paper. Furthermore, fintechs must now secure the backing of a commercial bank to act as the issuing and paying agent. These stricter rules aim to filter out less creditworthy entities and bring a greater level of oversight to the commercial paper market, potentially reducing the number of private companies seeking funding through this route.
Despite these regulatory adjustments, the underlying trend remains clear: Africa’s public markets are increasingly becoming a viable funding avenue for promising credit fintechs.
Securitization and CP issuances allow credit fintechs to match liabilities with their core lending activities more precisely, avoiding the dilution that comes with equity while fostering financial discipline. They also demonstrate these companies’ growing sophistication in risk management, transparency, and investor relations — core competencies required for a public listing.