Goeie dag,
Victoria from Techpoint here,
Here’s what I’ve got for you today:
- GH¢20k licence fee set for digital credit providers
- TLcom’s Ido Sum exits after 14 years
- PayPal steps up Africa push with new $100M fund
GH¢20k licence fee set for digital credit providers
The Bank of Ghana is tightening the screws on Ghana’s booming digital lending space. Starting November 3, 2025, the Central Bank will begin accepting applications for licences from firms offering digital credit services — the kind of microloans you get through apps and fintech platforms.
The new directive, published on September 23, lays out what players will need to stay in the game. Top of the list is a minimum capital requirement of GH¢2 million, with evidence of funds to be shown in corporate accounts. There are also transaction limits capped at GH¢10,000 to keep lending within regulated bounds.
But money isn’t the only hurdle. Applicants must submit five-year business plans, detailed product outlines, and proof of strong ICT systems. The Bank also wants to see measures for fighting fraud, money laundering, and cybercrime, plus disaster recovery plans to ensure operations don’t collapse under pressure.
Ownership is another key area. At least 30% of equity must be held by a Ghanaian, and no single shareholder can hold more than 90%. Directors and managers must meet “fit and proper” requirements, showing integrity and competence before being approved to run licensed firms.
The fees are straightforward but not cheap: GH¢10,000 for processing, GH¢20,000 for the licence itself, and GH¢10,000 for renewals every two years. The Bank says this structure will keep the sector professional and ensure only serious players are licensed.
For regulators, the move is about balancing innovation with accountability. Digital lending has exploded in recent years, but with that growth has come rising consumer complaints. By introducing stricter rules, the Bank of Ghana hopes to protect users, broaden financial inclusion, and bring order to a sector that’s been moving too fast for comfort.
TLcom’s Ido Sum exits after 14 years
Ido Sum, one of the longest-serving partners at Africa-focused VC firm TLcom Capital, is stepping down after 14 years with the fund. Sum, who joined the firm in 2011, has been a key figure in its growth from London and helped shape investments in some of Africa’s most recognised tech startups.
Over the years, he’s worked closely with companies like Zone, the blockchain-powered payments player; edtech giant uLesson; South African fintech Littlefish; and Kenyan healthtech Ilara Health. He sat on the boards of all four startups and played a hands-on role in guiding TLcom’s portfolio, which also includes Andela, FairMoney, Twiga, and Autochek.
“It has been a privilege to work with such a talented team and to support Africa’s most audacious entrepreneurs,” Sum said in a statement reflecting on his exit. While he hasn’t revealed his next step, his track record suggests he’s not done with African tech just yet.
Before TLcom, Sum was already deep in the ecosystem, co-founding a mobile broadband operator in East Africa and running a consulting business for startups and incubators in Israel. His mix of entrepreneurial and VC experience has made him one of the continent’s most familiar names in venture.
TLcom’s Managing Partner, Maurizio Caio, thanked him for his “commitment and dedication” and praised his role in building the firm into a go-to investor for Africa’s most ambitious founders. With Sum moving on, all eyes are on where he’ll turn next — a new fund, advisory roles, or maybe another entrepreneurial play.
PayPal steps up Africa push with new $100M fund
PayPal is doubling down on Africa with a fresh $100 million fund to back startups across the continent and the Middle East. The global payments giant says the money will be channelled through its venture arm, PayPal Ventures, into minority stakes, potential acquisitions, and follow-on investments in promising companies.
For Africa, this is big news. PayPal has already dipped its toes into the ecosystem, backing South Africa’s Stitch and Egypt’s Paymob. Both are fintechs building the kind of infrastructure that could transform payments on the continent. With this new fund, the company looks set to go beyond opportunistic bets and put real weight behind scaling local entrepreneurs.
“We’re investing in solutions that will help entrepreneurs scale faster and expand their reach beyond borders,” said PayPal CEO Alex Chriss. That global reach is exactly what many African founders have been chasing, as they battle with fragmented markets and limited access to international payment rails.
The $100 million push follows PayPal’s April decision to open a regional hub in Dubai, a move that clearly wasn’t just for show. That office is now positioned as the bridge connecting African startups to PayPal’s global payments network, and the fund is the capital to back it up.
Otto Williams, Senior VP at PayPal and Regional Head for MEA, said the company’s goal is to link African businesses with the global marketplace. With digital commerce booming and fintech still the hottest sector in African venture, PayPal’s entry could help plug the funding gap for growth-stage startups, the stage where many companies struggle most.
The timing matters too. Africa’s funding slowdown has forced startups to seek deeper-pocketed strategic investors, and PayPal is one of the few global players with both the appetite and the infrastructure to add real value. For founders eyeing international expansion, this $100M commitment could be the difference between plateauing and scaling globally.
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Opportunities
- Kuda Business and Techpoint Africa invite you to an exclusive webinar: Managing Payment Operations at Scale with APIs on October 2, 2025 at 12p.m. WAT. Register here to attend.
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Have a superb Thursday!
Victoria Fakiya for Techpoint Africa
