Brazil: Brazil plans to implement a $12 billion spending cut over the next two years to address fiscal imbalances and restore investor confidence. Key measures include capping public sector salaries, limiting real minimum wage increases to 2.5%, and raising income taxes for earnings above 50,000 reais. Additionally, the government aims to exempt wages up to 5,000 reais from income tax. These reforms are designed to tackle rising expenditures and ensure fiscal sustainability. Source
Mexico: Mexico has warned that President-elect Donald Trump's proposal to impose a 25% tariff on Mexican imports could lead to significant economic repercussions, including the loss of up to 400,000 U.S. jobs and increased consumer prices. Economy Minister Marcelo Ebrard highlighted that such tariffs would particularly impact U.S. automotive companies operating in Mexico, such as General Motors and Ford, potentially raising vehicle prices by an average of $3,000 per unit. In response, Mexico is considering advancing trade agreements with the European Union and strengthening commercial ties with Brazil to mitigate the effects of potential U.S. tariffs. Source
Mexico: Plata Card, a Mexican fintech established in 2022, is transforming financial services for underserved populations by combining advanced technology with personalized customer support. Offering credit cards with up to 15% cashback and a 60-day payment cycle, the company aims to democratize financial access. Marketing and Communications Director Andrea Vidales highlights Plata Card's commitment to innovation and inclusivity, leveraging the founders' expertise in digital banking to challenge traditional financial norms and address real-world customer challenges. Source
Brazil: PagSeguro Digital Ltd., a Brazilian fintech, reported robust third-quarter 2024 results with a 22% revenue increase to R$4.83 billion and a 29% rise in net income to R$531.2 million. Total Payment Volume (TPV) surged 37% year-over-year to R$136 billion, driven by e-commerce expansion and a focus on larger accounts. While the active merchant client base declined by 3%, the company added 2 million clients in the past year, reaching a total of 32 million. Banking segment revenue grew by 52%, highlighting PagSeguro's strategic focus on profitability and technological growth. Source
Brazil: Spectra Investments, a leading Brazilian alternative investment firm, has increased its allocation to secondary market transactions in its latest flagship fund. This strategic move aims to capitalize on the growing opportunities within the private equity secondary market, which has seen record fundraising and heightened investor interest. By enhancing its focus on secondaries, Spectra seeks to provide investors with diversified exposure and attractive returns, leveraging its extensive experience in Latin American markets. Source
Mexico: R2, a Latin American fintech specializing in lending infrastructure for tech platforms, has secured $59 million in funding to enhance its operations and expand into Chile. The funding comprises a $9 million equity investment led by Mexican funds Hi Ventures and Cometa, with participation from Endeavor Catalyst, Y Combinator, and Google's Gradient Ventures. Additionally, R2 obtained a credit line of up to $50 million from Community Investment Management to support its Chilean lending activities. This capital infusion will enable R2 to improve its underwriting processes, invest in AI capabilities, and explore obtaining a banking license in Mexico to offer a broader range of financial services. Source
China: In November 2024, China continued its engagement with Africa through investments in infrastructure and green energy, alongside cultural exchanges. Notable developments included Angola's removal of Russia's Alrosa from its diamond mines, signaling a shift towards U.S. relations, and South Africa's assumption of the G20 presidency, focusing on inclusive economic growth amid global tensions. Additionally, MTN South Africa partnered with China Telecom and Huawei to advance 5G and AI technologies, aiming to enhance digital infrastructure across the continent. These events reflect the dynamic and multifaceted nature of China-Africa relations, encompassing economic, political, and technological dimensions. Source
India: The Reserve Bank of India (RBI) is expected to maintain its benchmark interest rate at 6.5% during its December 2024 meeting, postponing anticipated rate cuts to early 2025 due to rising inflation concerns. Annual retail inflation surpassed the RBI's 6% upper threshold in October, primarily driven by escalating food prices. Governor Shaktikanta Das has cautioned against premature rate reductions, emphasizing the need for caution. Consequently, economists now forecast the first rate cut to occur in February 2025, with a total reduction of 50 basis points anticipated by mid-2025, followed by a prolonged pause. This monetary policy stance comes amid a deceleration in India's economic growth, with projections of 6.8% for the current fiscal year and 6.6% for the next, down from over 8% in the previous year. Source
India: Yubi, an Indian fintech platform specializing in debt market solutions, plans to raise $150 million to $200 million in early 2025 to support its global expansion, particularly into the Middle East and North Africa. This fundraising initiative follows a 48% increase in operating revenue to ₹4.8 billion and a 22% reduction in losses to ₹3.9 billion in the fiscal year ending March 2024. Yubi, valued at $1.5 billion after a secondary share sale in July 2023, aims to enhance its technological infrastructure and explore acquisitions to strengthen its market position. Source
India: India is actively implementing measures to regulate its fintech industry in alignment with the Financial Action Task Force's (FATF) recommendations to combat money laundering and terrorist financing. Vivek Agrawal, Additional Secretary in the Ministry of Finance and Director of the Financial Intelligence Unit (FIU), emphasized that India is among the few nations proactively working to implement these standards. The Reserve Bank of India (RBI) has issued guidelines to regulate payment aggregators and gateways, and virtual asset service providers are now required to register with the FIU. These steps aim to balance innovation with security, ensuring that regulations support industry growth while addressing financial crime risks. Source
Ghana: Ghana's economy grew by 6.9% year-on-year in Q2 2024, its fastest expansion in five years, driven by strong mining and quarrying activity, especially in gold production. Despite this rebound, the domestic bond market remains weak following a major debt restructuring. The government has increased reliance on costly short-term treasury bills and private placements, raising concerns about debt sustainability and long-term economic stability. Source
Nigeria: The Central Bank of Nigeria (CBN) raised its benchmark interest rate to 27.5%, a 25-basis-point hike, marking the sixth increase this year. This move targets inflation, which soared to 33.88% in October due to rising food and energy costs. Governor Olayemi Cardoso stated that the impact of policy tightening will likely be evident by Q1 2025, as the CBN focuses on curbing inflationary pressures. Source
Nigeria: Veridaq, a Nigerian startup founded in early 2024, leverages blockchain technology to combat document fraud by enabling users to verify document authenticity through unique digital hashes. The platform facilitates the issuance and verification of work references, hands-on experience references, and individual recommendations, ensuring data integrity and security. By automating the verification process, Veridaq addresses challenges such as fraudulent claims and inefficiencies in background checks, aiming to make hiring and career development more transparent and competency-based. The company plans to expand across Africa and beyond, focusing on partnerships with governments, educational institutions, and large employers, while enhancing its AI-powered talent assessment tools and blockchain infrastructure. Source
Nigeria: Nigeria's goal of becoming a $1 trillion economy hinges on the transformative role of fintech, according to Stanley Jacob, President of the Fintech Association of Nigeria. The fintech sector has grown rapidly, with over 217 startups in 2023, compared to 74 in 2017, driven by high mobile penetration and a young, tech-savvy population. Beyond banking, fintech innovations are expanding financial inclusion across agriculture, healthcare, and insurance. However, challenges such as regulatory issues, forex volatility, and business sustainability must be addressed to unlock the sector's full potential and drive long-term economic growth. Source
UAE: The United Arab Emirates (UAE) has launched XRG, an investment company specializing in lower-carbon energy and chemicals, with an initial valuation exceeding $80 billion. Set to commence operations in the first quarter of 2025, XRG aims to more than double its asset value within a decade by capitalizing on the global energy transition, advancements in artificial intelligence, and growth in emerging markets. This initiative aligns with the UAE's strategy to diversify its economy and reduce reliance on oil revenues. Concurrently, the Abu Dhabi National Oil Company (ADNOC) has committed 200 billion dirhams ($54.45 billion) to the local economy over the next five years, reinforcing the nation's focus on sustainable development and economic resilience. Source
Egypt: Egypt's tax revenues increased by 38.3% to EGP 560.7 billion between July and October 2024, marking the highest growth in two decades. This surge is attributed to economic recovery, resolution of the foreign exchange crisis, tax system automation, and an expanded tax base. Income tax revenues rose by 7.7% to EGP 141.1 billion, with significant contributions from local salary taxes and corporate taxes. Value-Added Tax (VAT) revenues grew by 42.7% to EGP 261.2 billion, driven by increased receipts from goods and services. Property tax revenues climbed by 68.1% to EGP 118.9 billion, and taxes on international trade nearly doubled to EGP 39.6 billion. Non-tax revenues also saw an uptick, reaching EGP 87.5 billion. The Ministry of Finance is collaborating with revenue authorities to maintain tax stability and foster a business-friendly environment to stimulate economic growth. Source
Egypt: Egypt’s eFinance Investment Group has partnered with Cassava Technologies to expand digital payment solutions across Africa. The collaboration aims to combine eFinance's expertise in Egypt's digital payments infrastructure with Cassava's extensive presence across the continent. Announced during the Cairo ICT 2024 event, the partnership seeks to drive financial inclusion and innovation, leveraging both companies’ capabilities to enhance access to digital services in African markets. Source
Egypt: Sylndr, Egypt's leading online used car trading platform, has raised $7.4 million (EGP 370 million) in new funding to expand its operations. The financing round was led by EFG Hermes, which acted as the sole financial advisor and designed an innovative financing structure tailored to the company's complex legal and financial framework. The lending consortium included EFG Corp-Solutions, NXT Commercial Bank, EG Bank, and other financial institutions. This new round, following a previous $12.6 million pre-seed investment in May 2022, represents a major step forward for Sylndr and the broader Egyptian startup ecosystem. The fresh capital will enable Sylndr to enhance its vehicle inventory, improve customer experience, and boost operational efficiency while diversifying its future funding sources. Mai Hamdy, Managing Director of Debt Capital Markets at EFG Hermes, commented: "The funding represents a qualitative leap not only for Sylndr but for the Egyptian startup ecosystem as a whole," emphasizing that the financial structure provides Sylndr with the flexibility to expand while securing lenders' rights. Source
