Mozambique’s digital economy just got a jolt of fintech energy, thanks to a new deal that will allow Flutterwave to operate as a payment aggregator in the country.
Flutterwave, an African payment platform, has recently secured a payment aggregator license in principle from the Central Bank of Mozambique. [2] The new license will allow the company to expand its services within the nation, making it easier and faster for companies to do business.
More specifically, Flutterwave’s new services will provide businesses with the ability to accept multiple forms of online payments without having to build and maintain their own payment-processing systems, making scaling simpler and easier for growing companies.
“Our goal is to empower local businesses and open doors for global enterprises across all industries by providing them with a secure and convenient payment solution that drives inclusive growth,” said Flutterwave’s founder and CEO Olugbenga “GB” Agboola.
Powering Mozambique’s Digital Economy
The decision to allow Flutterwave to expand operations inside of Mozambique comes at a unique time for the country’s economy.
The Southeast African nation is currently experiencing a renaissance of economic activity following a few years of contraction. For the first 15 years of this century, Mozambique benefited from having one of sub-Saharan Africa’s fastest-growing economies, according to the World Bank. However, the nation was hit hard by the COVID-19 pandemic, causing its economy to shrink. In the years since the pandemic, the nation has experienced high levels of inflation.
Yet, despite these economic headwinds, the country’s economy has managed to find its footing. In 2023, the country’s overall economy grew by 5%,[3] while inflation continued to fall from its high point of 9.8% in 2022. [4]
Flutterwave entering the country amid this climate signals even more reasons for optimism. Mozambique’s digital economy continues to trend upward, with experts predicting that total digital transactions will increase by over 15% year over year. The country’s total digital economy should reach a total north of $9 billion by 2028.
“We are grateful to the Central Bank of Mozambique for this approval. It comes at the right moment when Mozambique’s digital payment ecosystem is experiencing tremendous growth,” said Flutterwave’s Agboola. “As individuals’ and businesses’ payment needs evolve across the country, we are ready to leverage our technology, extensive industry experience, and comprehensive solutions to meet their diverse payment needs.”
As Flutterwave moves into the country, global companies will have the option to utilize the company’s digital platform to make many quotidian business operations easier. By taking advantage of Flutterwave’s suite of services and user base (which covers most of Africa’s 54 countries), international enterprises will be able to provide their goods and services to Mozambique residents in a faster and easier way than they otherwise could afford.
The far reach of Flutterwave’s digital payments services means that newcomers to Mozambique’s business landscape can seamlessly fit themselves into the country’s rapidly expanding digital economy.
The agreement in principle to provide Flutterwave with a payment aggregator license can be seen as a nod of confidence in the company by the Central Bank of Mozambique, which has lengthy requirements to obtain such a license.
Flutterwave is a digital payments platform that launched from Nigeria in 2016. Since its founding, the company has expanded across the African continent, offering solutions to businesses and individuals who wish to buy, sell, and move money across international borders or within national boundaries.