Brazil: Brazil's economy is expected to have grown by 0.9% in the second quarter of 2024, following a 0.8% expansion in the first quarter. This growth has been driven by strong household spending and public expenditure, particularly on social benefits and flood-related aid. Real wage increases and a robust labor market also played a significant role. However, higher imports, which surpassed stagnant exports, may have tempered overall growth. Analysts predict some deceleration going forward due to the anticipated implementation of restrictive fiscal and monetary policies source.
Mexico: The Mexican peso recently slumped due to renewed concerns over judiciary reforms in the country. These fears have heightened uncertainty among investors, raising worries about the potential impact on the independence of Mexico's judiciary system. This political instability has contributed to the peso's depreciation, as market participants become more cautious, leading to weaker performance against currencies like the U.S. dollar. The situation has created increased volatility in the Mexican peso market source.
Brazil: Vivo, the Brazilian subsidiary of Telefónica, has received approval from the Central Bank of Brazil to extend its reach in the fintech sector. This allows Vivo to offer services such as credit and insurance, broadening its financial solutions portfolio beyond telecommunications. The approval marks a significant step for Vivo, which aims to leverage its digital ecosystem to provide more comprehensive financial services to its customer base, enhancing its presence in the rapidly growing fintech market in Brazil. Source: TelcoTitans
Brazil: Ume, a payment network for small- and mid-sized businesses in Brazil, raised $15 million in a Series A funding round led by PayPal Ventures, with additional backing from several prominent investors. The funds will be used to expand Ume’s payment services on Pix, a popular digital payment system in Brazil. Ume has rapidly grown its merchant base and consumer usage, offering flexible payment options like buy now, pay later (BNPL). This funding will support Ume’s continued growth and market expansion. Source: Financial IT
China: Nigeria and China have signed a new economic and nuclear energy pact aimed at strengthening bilateral cooperation. The agreement covers areas such as nuclear energy development, renewable energy, and other economic sectors. This move is part of Nigeria’s efforts to diversify its energy sources, and it underscores China's growing involvement in African infrastructure and energy projects. Both countries are looking to deepen their economic ties through this pact, which could lead to further investments and collaborations in key sectors like energy and technology source.
India: India's Chief Economic Advisor, V. Anantha Nageswaran, cautions against the growing influence of financial markets in policymaking, stating that over-financialization could lead to issues like inequality and debt dependence. He stresses the need for India to retain policy autonomy and avoid the mistakes of developed economies, which have faced challenges due to market-driven policies. He advocates for a balanced approach as India pursues its goal of becoming a developed nation by 2047. Source
China: African leaders have gathered in Beijing seeking loans and investments for infrastructure projects. Despite concerns about debt and China's economic slowdown, Africa is eager to leverage China's financial support, as China remains its largest trading partner. The geopolitical tensions between China and the U.S. could also influence future deals, as African nations navigate shifting global dynamics while securing development funding. Source
China: Ant Group has spun out an AI-powered personal assistant app, expanding its presence in the artificial intelligence space. The app, built on Ant's large language model (LLM), aims to assist users with tasks such as wealth management, insurance, and investment research. This move reflects growing competition among Chinese tech giants to develop AI-driven services. Ant’s AI model is positioned to outperform general-purpose LLMs in financial applications, marking a significant step in China's AI development. Source
India: Invest4Edu, an Ed-Fintech company, has raised $3 million in seed funding from prominent family offices. The funds will be used to accelerate the company’s growth, focusing on sales, marketing, technology, and product development. Invest4Edu offers education planning and investment services to help families meet education costs, with plans to reach over 1.5 million users in the next two years. It also aims to build a $250 million mutual fund AUM and expand its offerings through partnerships and financial literacy programs. Source
Singapore: Validus, a Singapore-based SME lending platform, secured $50 million in debt financing to support small and medium enterprises in Indonesia. The funding aims to improve access to capital for Indonesian businesses, helping them grow and develop. This move is part of Validus' mission to empower SMEs in Southeast Asia. Source
Nigeria: Nigeria's economy shows a paradox where GDP growth and reduced inflation haven't translated into improved living standards for most citizens. While GDP rose to 3.19% and inflation slightly declined, many Nigerians still face high living costs and unemployment. This gap between positive macroeconomic indicators and real-life struggles reflects a lack of inclusive economic growth, leaving the majority without tangible benefits from the recovery. Source
South Africa: Key factors affecting South African markets on September 3 include the release of second-quarter GDP data, bond auctions, and financial results from companies like Shoprite and Aspen Pharmacare. The rand remained steady while the Johannesburg Stock Exchange's Top-40 index saw a slight dip. Global bond yields rose ahead of key U.S. economic data expected to influence interest rate decisions, while Wall Street saw gains and gold prices fell. Source
Nigeria: In August 2024, African startups raised $56 million, with Nigeria accounting for 14% of the total. Nigerian fintech Waza, backed by Y Combinator, secured $8 million through a combination of equity and debt. Despite these gains, August marked the second-slowest month for startup funding in four years, following a record $443 million raised in July. The majority of the August funds were raised through equity (87%), with the remainder in debt and grants. Source
South Africa: MTN MoMo is shifting its strategy in South Africa by using "foot soldiers" or agents to drive mobile money adoption. This grassroots approach aims to build trust and engage the unbanked population more effectively. While MoMo has 11 million registered users in South Africa, many have not fully adopted its advanced services. The personalized approach is expected to increase engagement in a competitive market dominated by traditional banking systems. Source
Kenya: Kenya's MarketForce founders have secured $1.2 million in pre-seed funding for their new e-commerce venture, Chpter. The platform integrates AI-powered tools with WhatsApp and Instagram to enhance social selling for entrepreneurs. Chpter enables businesses to list products, engage customers, and complete transactions online, making social commerce more accessible, particularly in underserved markets. The funding will support Chpter’s expansion into Egypt and Nigeria. Source
South Africa: Arise has invested $7.5 million in South African fintech startup Omnisient. The funding will support Omnisient’s expansion into markets across Africa, the UK, the USA, and the Middle East. Omnisient's platform enables secure data collaboration without compromising consumer privacy, helping banks and financial institutions extend services to previously underserved populations, fostering financial inclusion. This investment aligns with Arise’s mission to promote financial services growth across Africa. Source
Israel: Israel's finance minister has asked the attorney general to request the courts to halt a strike called by the Histadrut labor federation. The strike, prompted by safety concerns in the construction industry, threatens to disrupt public services. The finance minister's action seeks to prevent economic disruption while addressing labor disputes through legal avenues. Source
Pakistan: Pakistan's finance minister, Muhammad Aurangzeb, discussed the country's economic reforms aimed at attracting foreign investment. He pointed to improvements in key economic indicators, such as rising exports and a shrinking current account deficit. The government’s focus includes tax reforms, privatization, and maintaining fiscal discipline to stabilize the economy and draw global business interest. International investors highlighted Pakistan's strategic value as a gateway to regional markets. Source
Dubai: GreenX, the world's first Shariah-compliant digital asset exchange, has announced its expansion into the Middle East by establishing its regional headquarters in Dubai. This move, in partnership with Sharia Digital Technologies, will involve technology transfer and the promotion of Shariah-compliant Security Token Offerings (STOs). GreenX aims to capitalize on Dubai's status as a global blockchain hub to promote digital assets in the Islamic world. Source
Abu Dhabi: Alpha Financial Markets Consulting (Alpha FMC) has opened a new branch in Abu Dhabi's Global Market (ADGM), marking its first presence in the region. The firm aims to provide specialized consultancy services to the investment management sector in Abu Dhabi and the Middle East. With expertise in management and technology consulting, Alpha FMC seeks to contribute to the region's financial industry growth while addressing the complexities of modern markets. Source
Dubai: Dubai-based fintech Ziina has raised $22 million to support the UAE's growing small and medium-sized enterprise (SME) sector. Originally launched as a peer-to-peer payment app, Ziina now offers a broader platform for businesses to manage payments, connecting consumers and companies in one ecosystem. This funding round, which follows the company's acquisition of a central bank license, underscores investor confidence in the SME market, which accounts for 95% of UAE businesses. Source
Dubai: Biptap has secured $2 million in funding to drive its mission of disrupting the financial industry. The company aims to revolutionize cross-border payments by offering faster, more secure, and cost-effective solutions for consumers and businesses. With this investment, Biptap plans to enhance its platform's capabilities, expand its services to new markets, and accelerate its growth in the fintech sector. Source
