Brazil: Brazil's real appreciated by 0.2% against the U.S. dollar amid broader Latin American currency declines, supported by strong services activity and expected monetary tightening. The Central Bank of Brazil is anticipated to implement a 75-basis-point rate hike to address fiscal uncertainties and economic overheating, with analysts suggesting larger hikes may be necessary. Regional currencies faced pressure as U.S. inflation rose by 2.7%, strengthening the dollar. Legislative challenges in Congress remain a potential risk to Brazil's economic resilience. Source
Argentina: President Javier Milei's administration has introduced sweeping austerity measures, reducing government ministries from 18 to 8 and cutting subsidies for transportation and energy, leading to public sector job losses. Inflation has dropped to below 3% as of October 2024, but 53% of the population remains below the poverty line. Plans include negotiating a free-trade agreement with the U.S. and removing currency controls to attract foreign investment. The OECD projects 3.6% economic growth in 2025 following a 3.8% contraction in 2024, driven by increased investment confidence. Source
Mexico: The Mexican Peso strengthened against the U.S. dollar after U.S. inflation data met forecasts, fueling speculation of a Federal Reserve rate cut with an 82% probability in December. The Bank of Mexico is expected to lower its key interest rate to 10.25%, potentially narrowing the interest rate differential with the U.S. This may impact the Peso's performance, as currency valuations are influenced by rate differentials. Source
Mexico: Mexican fintech Klar has acquired the assets of B2B payments and financing platform Tribal to expand its offerings for small and medium-sized businesses (SMBs) in Mexico. The acquisition includes Tribal's payment solutions, business intelligence tools, and risk models. Klar plans to integrate these assets to provide comprehensive services, including direct payroll payments and personalized offers for businesses. Tribal's CEO and team will join Klar as part of the deal. Klar, which has been offering consumer credit services since 2019, aims to enhance its position in the market. Source
Brazil: Torq Ventures credits the rapid growth of Brazil's fintech sector to the Central Bank of Brazil's innovative initiatives, including the Pix instant payment platform and the digital currency Drex. These efforts have fostered collaboration among regulators, financial institutions, and fintech startups, promoting technological advancements and financial inclusion. Torq Ventures' successful early investment in Celcoin, which led to a significant exit during Celcoin's Series C funding round, highlights the dynamic opportunities within Brazil's fintech ecosystem. Source
Argentina: Argentine fintech startup Viallion has won the Sadosky Prize in the Fintech Vertical Impact category for its innovative use of technology in financial services. The award recognizes Viallion’s flagship product, the Aconcagua Hedge Fund, which is the first in Latin America to use AI for real-time trading strategy optimization. Viallion aims to democratize access to sophisticated financial tools, bridging the gap between technology and traditional investment practices. Source
Mexico: Mexican startup Prima has raised $23 million in a Series A funding round, bringing its total funding to $42.5 million. The round was backed by Acrew, Nazca, and Quona Capital. Prima provides a range of services to Mexican manufacturers, including financial support and end-to-end solutions. The company plans to use the new funds to expand into the U.S., enhance product development, and elevate Mexico's manufacturing sector. Founded in 2019, Prima works with over 200 manufacturers across North America, including clients like Deacero and Farmacias del Ahorro. Source
China: China's leadership has shifted to a "moderately loose" monetary policy and proactive fiscal measures to combat deflationary pressures and a property market slump. This is the first easing policy since 2010. Large-scale stimulus akin to 2008 is unlikely as authorities focus on balancing growth with financial stability. Targeted support for key sectors is planned to avoid excessive debt. Analysts warn these measures may provide limited relief against external pressures like potential U.S. tariff increases. Source
India: India's GDP growth slowed to 5.4% in the July-September quarter of 2024, marking the slowest pace in two years due to weak performance in manufacturing and mining. Commerce Minister Piyush Goyal remains optimistic, emphasizing India's position as the fastest-growing major economy. The Reserve Bank of India revised its 2024-25 growth forecast to 6.6% from 7.2%, keeping the key policy rate at 6.5% to address inflation. Analysts predict the RBI may support growth through liquidity measures rather than rate cuts. Source
India: Zaggle, an Indian fintech company, received the Transformation Tech Award at the Deloitte Technology Fast 50 India event. The award highlights Zaggle's contributions to digital transformation and innovation in financial technology. The program annually recognizes India’s fastest-growing technology firms for their revenue growth and technological advancements. Source
India: Indian supply chain financing platform Mintifi has raised $180 million in a Series E funding round co-led by Prosus Group and Teachers’ Venture Growth (TVG), with participation from Premji Invest. The investment brings Mintifi's total capital to over $1 billion. The company plans to use the funds to expand its services, including loans against property, domestic and overseas factoring, and AI-driven enhancements for corporate clients. Mintifi provides end-to-end supply chain fulfillment for over 100 leading Indian brands. Source
India: India-based Avanti Finance has raised $14.2 million (INR 120 crore) in a Series B1/B2 funding round, led by Dia Vikas Capital, with participation from existing investors such as IDH Farmfit Fund and NRJN Family Trust. The funds will help Avanti expand its loan portfolio, enhance its deep-tech platform, and broaden its presence in rural and urban markets. With this round, Avanti's total funding to date has reached approximately $80 million. Source
India: One Mobikwik Systems' IPO, launched on December 11, 2024, saw overwhelming demand, being fully subscribed within 90 minutes. The IPO, aiming to raise ₹572 crore, was priced between ₹265 and ₹279 per share. Retail investors subscribed to their portion by 14.54 times, while non-institutional investors subscribed by 3.20 times. The Qualified Institutional Buyers (QIB) portion received lukewarm interest but is expected to pick up closer to the IPO's closing date. The grey market premium indicates strong demand, with unlisted shares trading at ₹415, 48.75% above the upper price band. The IPO will close on December 13, and shares are expected to list on December 18, 2024. Proceeds will support Mobikwik’s expansion in financial services and technology development. Source
Singapore: Singapore-based fintech KAST has secured $10 million in seed funding, led by HongShan Capital Group (HSG) and Peak XV Partners, with participation from notable angel investors. KAST offers stablecoin-backed neobank services, including USD-denominated accounts and payment cards, for users in over 150 countries. The company aims to introduce savings and remittance products to provide faster, cost-effective financial services globally. The funding will support KAST’s expansion and the development of new products, capitalizing on the growing use of stablecoins. Source
Ghana: President-elect John Mahama faces the urgent task of addressing Ghana's debt crisis and advancing economic reforms. Ghana recently restructured $13 billion in Eurobonds, reducing debt by $4.7 billion, but risks remain, including election-related fiscal slippages and energy sector inefficiencies. Mahama plans to renegotiate the $3 billion IMF bailout and implement fiscal reforms, such as tax base expansion and expenditure controls, to prevent future crises. The IMF has approved a $360 million disbursement following Ghana's third program review, but analysts warn of potential liquidity pressures without sustained reforms. Source
Nigeria: President Bola Tinubu's economic reforms, including the removal of fuel subsidies and exchange rate unification, have spiked inflation and living costs, deepening poverty in Nigeria. The World Bank has endorsed these reforms, suggesting a 10-15 year implementation period for long-term benefits. However, concerns over the immediate hardships and lack of social safety nets persist, with critics cautioning that these policies may worsen inequalities and fail to address Nigeria's unique economic challenges. Source
South Africa: South Africa's inflation expectations have dropped to the midpoint of the SARB's target range, with forecasts of 4.6% for 2024 and 2026 and 4.5% for 2025, marking a three-year low. Headline inflation fell to 2.9% in November, prompting SARB to cut its key lending rate by 25 basis points in its last two meetings. A further 50 basis point cut is anticipated in January. These developments could attract foreign investment and align South Africa with global monetary easing trends, boosting trade and economic activity. Source
Nigeria: MoniMoore, a new wealth management app, has launched its beta version to help Africans track, manage, and grow their finances. Using AI and open banking technology, the platform aggregates data from multiple accounts to provide a comprehensive financial overview. Features include personalized budgeting, AI-driven investment insights, and gamified financial literacy tools. The app aims to make wealth management accessible across all income levels. Source
South Africa: Visa has reaffirmed its $1 billion investment goal in Africa's digital transformation by 2027, highlighted by the Demo Day of its Africa Fintech Accelerator program. The event in Cape Town featured 23 fintech startups showcasing their solutions to investors and partners. The 12-week program offered training, mentorship, and networking to support fintech innovation across the continent. Visa's initiative underscores its commitment to financial inclusion and economic growth in Africa. Source
UAE: The UAE and the Eurasian Economic Union (EAEU) have finalized negotiations on a Comprehensive Economic Partnership Agreement (CEPA) to enhance bilateral trade. Non-oil trade between the UAE and EAEU nations reached $13.7 billion in H1 2024, a 29.6% year-on-year increase. The CEPA aims to reduce tariffs, eliminate technical barriers, expand market access, and streamline customs procedures. It also promotes digital trade, e-commerce, and SME collaboration, reinforcing ties between the Gulf and Eurasia. Source
Egypt: Egypt will adopt a new methodology for its 2025-2026 economic and social development plan to align with international best practices and Vision 2030. Planning Minister Rania Al-Mashat highlighted the initiative's focus on comprehensive reforms to enhance resilience amid global challenges. The plan emphasizes creating an efficient planning system to promote sustainable development and expand private sector participation. Source
Israel: Israel will raise its Value-Added Tax (VAT) from 17% to 18% starting January 1, 2025, to address its growing budget deficit, largely attributed to prolonged military conflicts. The Finance Ministry expects this measure to generate NIS 7 billion ($1.9 billion) annually. However, the increase may disproportionately impact low-income households, intensifying economic inequalities. Critics urge alternative fiscal strategies to reduce the burden on vulnerable populations. Source
Israel: Israeli company Fintica AI has partnered with Hong Kong-based Legend Arb Trading Limited to revolutionize financial markets using AI. Legend Arb will integrate Fintica’s unsupervised AI technology to enhance trading strategies and develop market solutions for Greater China. The partnership aims to leverage both companies’ expertise to expand opportunities in Hong Kong’s financial sector. Source
Egypt: Egyptian banks, including NBE, Banque Misr, and CIB, have launched trials for Apple Pay, enabling secure contactless payments via Apple devices. This follows the Central Bank of Egypt's 2023 regulations promoting card tokenization for digital payments. The move aims to enhance transaction security and support Egypt's digital transformation agenda. Source
UAE: Egyptian fintech MNT-Halan has entered the UAE market with its financial super app, starting with Halan Advance, a digital salary financing solution. Since April 2024, the company has partnered with major employers and gained over 40,000 customers, targeting 250,000 users by 2025. The expansion aims to serve 3.7 million underbanked expatriates earning over AED 10 billion monthly. Source
Au Dhabi: Abu Dhabi-based fintech firm has secured $500 million in asset-backed financing to enhance its financial services and expand its market presence. This investment reflects growing confidence in the Middle East's fintech sector and will help the firm strengthen its operations and support strategic growth initiatives. Source
