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Reserve Bank of Zimbabwe ‘Developed a Roadmap for Adoption of CBDC,’ Says Governor

Reserve Bank of Zimbabwe ‘Developed a Roadmap for Adoption of CBDC,’ Says GovernorThe governor of the Zimbabwean central bank, John Mangudya, recently said his organization “has developed a roadmap for adoption of CBDC [central bank digital currency] in Zimbabwe.” Mangudya also revealed that two fintech startups had been admitted into the central bank’s fintech regulatory sandbox. Stakeholders’ Views Wanted Nearly six months after announcing the Reserve Bank […]

Reserve Bank of Zimbabwe ‘Developed a Roadmap for Adoption of CBDC,’ Says Governor

The governor of the Zimbabwean central bank, John Mangudya, recently said his organization “has developed a roadmap for adoption of CBDC [central bank digital currency] in Zimbabwe.” Mangudya also revealed that two fintech startups had been admitted into the central bank’s fintech regulatory sandbox.

Stakeholders’ Views Wanted

Nearly six months after announcing the Reserve Bank of Zimbabwe (RBZ)’s intention to explore the feasibility of launching a central bank digital currency (CBDC), the bank’s governor John Mangudya recently revealed that the central bank now has a roadmap for the envisaged digital currency. He said the bank’s development of the roadmap is in line with the government’s decision on the CBDC which was made in November 2021.

Nevertheless, Mangudya suggested in his second monetary policy statement of the year that the RBZ is now eager to get the views of stakeholders. He said:

The role of stakeholders in the CBDC journey is paramount and in that regard, the Bank has developed a public consultation paper on CBDC to be released soon. The consultation paper is aimed at fostering a broad and transparent public dialogue regarding the potential benefits and risks of CBDC.

According to the RBZ, once the document has been released, the public will have an opportunity to comment on the consultation paper. This must be done within 90 days after the release of the consultation paper, Mangudya said.

Besides the consultation paper, the RBZ will also “carry-out consumer perception surveys on CBDC.” The findings from the two undertakings “will enable the Bank to engage in pilot programmes related to CBDC.”

Admissions Into the Fintech Regulatory Sandbox

Meanwhile, in the same statement, the RBZ governor revealed that two fintech firms; namely Llyod Crowd Funding and Uhuru Innovative Solutions had been admitted into the fintech regulatory sandbox. Of these two, Llyod Crowd Funding has already commenced its sandbox operations that will run until 2023 while Uhuru Innovative Solutions is expected to start regulatory testing soon.

According to Mangudya, the admission of the two startups and “the initiation of regulatory testing is a signal of the Bank’s commitment to promoting responsible innovation.”
At the same time, the results that are derived from the regulatory testing are expected to furnish the RBZ with “critical evidence in the formation of an appropriate regulatory framework for financial technology in the country.”

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Source: Fintech Archives – Bitcoin News

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US Tennis Player Serena Williams’ VC Firm Leads Ugandan Fintech’s $12.3 Million Pre-Series A Funding Round

US Tennis Player Serena Williams’ VC Firm Leads Ugandan Fintech’s .3 Million Pre-Series A Funding RoundThe Uganda-based digital lending fintech startup, Numida, has said it will start offering its services to micro, small, and medium-sized enterprises in other African countries. Numida’s plans to offer its services to businesses beyond Uganda’s borders came shortly after it was announced that the startup had raised a total of $12.3 million in its pre-Series […]

US Tennis Player Serena Williams’ VC Firm Leads Ugandan Fintech’s .3 Million Pre-Series A Funding Round

The Uganda-based digital lending fintech startup, Numida, has said it will start offering its services to micro, small, and medium-sized enterprises in other African countries. Numida’s plans to offer its services to businesses beyond Uganda’s borders came shortly after it was announced that the startup had raised a total of $12.3 million in its pre-Series A funding round. Serena Ventures, a venture capital firm founded by American tennis player Serena Williams, led the funding round.

Unlocking the Potential of Small Businesses in Africa

Numida, the Uganda-based fintech, has said it plans to take its digital lending business outside the country, using part of the $12.3 million it raised via its pre-Series A equity-debt funding. The round was led by the U.S. tennis star Serena Williams’ venture capital firm Serena Ventures. Also participating in this funding round were Breega, 4Di Capital, Launch Africa, Soma Capital and Y Combinator.

In comments following Numida’s successful capital raise, co-founder and CEO Mina Shahid reportedly touted the impact of the financial products his company has been availing to small businesses in Uganda, and how this can be replicated in other African countries. Shahid said:

I’m most excited about continuing to build and provide financial products for these micro and small business owners …. There are so many of these businesses across the continent, we really do believe that we’ve proven a model in Uganda that can be Pan-African and unlock the potential of these businesses to grow and achieve great things.

Prioritizing Small and Medium-Sized Enterprises

As explained in a Techcrunch report, Numida has prioritized serving micro, small, and medium-sized enterprises (MSMEs) because they are continually marginalized by traditional financial institutions. Using the recently raised capital, Numida said it plans to increase its active client base to 40,000. The fintech startup plans to do this by expanding its operations in two countries, the report said.

According to the report, Numida, which raised $2.3 million in 2021, has so far granted $20 million in working capital to MSMEs. With the backing of Lendable Asset Management, which recently lent $5 million to the startup, Numida will increase the value of its loans and will at the same time remodel its products to ensure their affordability.

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Source: Fintech Archives – Bitcoin News

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