Microsoft and Flutterwave Forge 5-Year Strategic Partnership to Boost African SMEs.
In a landmark announcement, Microsoft has unveiled a game-changing five-year strategic technology partnership with Flutterwave. This groundbreaking collaboration will see Flutterwave develop its next-generation platform on Microsoft Azure, with the overarching goal of expediting payment innovation in Africa. By doing so, the partnership seeks to supercharge the growth of small businesses throughout the continent.
Small and medium-sized enterprises (SMEs) play a pivotal role in Africa’s advancement and progress. Current statistics indicate that approximately 90 percent of the continent’s population is employed within SMEs. Beyond employment, these businesses frequently lead the charge in innovation, offering solutions to some of Africa’s most pressing societal challenges.
However, despite the central role played by small businesses and startups in the African economy, they must navigate substantial hurdles to achieve success. Research conducted by the African Union Development Agency has revealed that approximately five out of seven SMEs in Africa will falter within their first year. Likewise, the average startup failure rate in Africa hovers at around 54 percent.
One of the primary challenges confronting both SMEs and startups is the lack of access to financial services and the inability to execute seamless transactions across local payment methods. While approximately 90 percent of transactions in Africa are still reliant on cash, as many as half of small businesses lack access to credit.
“To foster sustainable growth in Nigeria, small businesses need the capacity to actively engage in local and even global markets. This commences with digital financial inclusion. If we aspire to construct a more resilient nation and, ultimately, a more prosperous continent, we must begin by affording these businesses the digital financial services required, not merely to survive, but to thrive,” asserts Ola Williams, Country Manager at Microsoft Nigeria.
Flutterwave’s core mission is aligned with this vision – assisting businesses in surmounting obstacles related to access to financial services and connecting them to the global stage. This is achieved through the facilitation of multiple payment modes, including local and international cards, mobile wallets, and bank transfers.
Since its inception, Flutterwave has made significant strides in democratizing payments across Africa. Through its partnership with Microsoft, the payments technology company aspires to further fuel growth and revolutionize payment solutions for businesses across the continent.
The shift away from its legacy infrastructure to Azure will enable Flutterwave to process high-volume payments at scale, ensuring a seamless and secure payment experience for its clients. Leveraging Azure OpenAI Service, it also has the opportunity to expand its product offerings to millions of merchants worldwide.
Commenting on this pivotal partnership, Olugbenga ‘GB’ Agboola, Founder and CEO of Flutterwave, affirms, “In our journey at Flutterwave, we’ve consistently aimed to touch lives by simplifying payments and connecting dreams to opportunities. Today, as we join hands with Microsoft, it feels like a family reunion of visionaries and go-getters. The excitement within our team is palpable because this partnership isn’t solely about transactions – it’s about transformation. We’re honored that Microsoft believes in our vision and trusts our capabilities. I’m proud to say that we’re not merely dreaming of an inclusive digital Africa; we’re actively creating it.”
As part of this collaboration, Flutterwave will also introduce transactable solutions on Azure Marketplace, including its SMB finance-as-a-service offering, further extending its reach.
Lillian Barnard, President of Microsoft Africa, underscores the commitment to accelerating economic growth in Africa through the transformative potential of technology, particularly in making it possible for SMEs to acquire the digital financial tools and services needed to thrive. She states, “We believe that enhanced access to technology and innovation is the key to nurturing thriving local businesses, ultimately fostering stronger economies that pave the way for a brighter future for all.”