Flow Global, a FinTech company providing working capital finance to mobile money merchants through its subsidiary Flow Rwanda, has rapidly grown within Rwanda's dynamic financial ecosystem, while addressing the financing gap for Micro, Small and Medium Enterprises (MSMEs). Incorporated in 2018 in the United Kingdom, Flow Global launched its core operations in Uganda in 2019, and in 2022, through the Kigali International Finance Centre (KIFC), the company expanded and domiciled its operations in Rwanda. According to Flow Global's Regional Chief Executive Officer, Geoffrey Acini, the company's investments and operations in Rwanda are critical to the country's financial inclusion and economic growth efforts. By offering a fully digital loan product which drives the usage of mobile money and supports the digital payment ecosystem of the country, Flow is supporting Rwanda’s ambitious plans to create a transparent digital economy, Acini told the New Times. Acini noted that Flow is focusing on supporting groups that have traditionally been excluded from formal financing, like youth and women who make up 75 per cent and 52 per cent of the company's customer base respectively. According to the International Finance Corporation (IFC), the financing gap for MSMEs amounts to a staggering $5.2 trillion across developing economies, with the issue more pronounced for micro enterprises. Flow's primary customers are mobile money merchants, who fall into the micro enterprises category and serve as essential components of the digital economy. Many of the mobile money merchants, mostly known as agents, face challenges in accessing working capital e-float, necessary for their growth. At Flow, we identify mobile money agents in need of financing for expansion and provide them with the liquidity they require to grow their businesses, Acini said, adding that 68 per cent of the company's customer base is in rural areas. Flow has more than 180 employees globally, with the company’s headquarters in London, United Kingdom and subsidiaries in Uganda, Rwanda, Madagascar and India. So, why was KIFC a domicile of choice for Flow Global? Rwanda has made a lot of effort to create a business-friendly environment, especially for fintechs. The mobile money market in Rwanda is highly competitive and shows strong growth year-on-year. KIFC is at the centre of it and, therefore, we chose to be where the action is, Acini said. Acini also noted that KIFC was very supportive especially when it came to navigating the regulatory framework in Rwanda. He further mentioned that Flow Global was the first fintech company in the country to obtain a central bank license to operate as a non-deposit-taking financial institution. Since the launch of its operations, the company has registered almost 2,100 customers and has distributed almost 685,000 loans. According to the CEO, Flow Global has been successful in raising funds and has a diverse mix of investors, ranging from commercial to impact investors. Flow Global is one example of a company that has successfully established itself in Rwanda through KIFC as a key enabler, providing the conducive regulatory framework, tax incentives, and streamlined processes. Founded in the year 2020, KIFC is an initiative by the government of Rwanda to develop and increase the contribution of the financial sector to the overall growth of the economy and position the country as a leading financial hub in Africa. According to Jean-Marie Kananura, the Chief Investment Officer at Rwanda Finance Limited, KIFC has provided a conducive environment for international investors and has several key offerings. KIFC provides an efficient business environment with streamlined registration processes, enabling investors to quickly set up and secure the required licenses, Kananura told The New Times, adding that the centre offers an optimised tax regime with several advantages designed to attract global investors, which are also available to local businesses. KIFC also offers a conducive financial ecosystem for innovation, where fintechs and other financial institutions are supported through tailored regulatory frameworks, including sandbox environments that encourage innovation and product testing. According to Kananura, Flow Global benefited from several unique advantages when it domiciled in Rwanda. Flow Global could test its innovative financial products in Rwanda’s sandbox framework, allowing for agility and quick market penetration, while leveraging the favorable tax regime which provides a competitive edge as they scale operations in the region, he said. In the latest edition of the Global Financial Centres Index (GFCI 36), which ranks the competitiveness of financial centres globally, Kigali ranks 2nd in Africa in the fintech ranking, reflecting KIFC’s growing ambition of positioning Rwanda as a home of fintechs in Africa. Overall, Kigali maintains its 2nd position in Sub-Saharan Africa. What makes Kigali an attractive destination for investments? Kigali's attractiveness lies in its unique blend of innovation, stability, and strategic positioning, Kananura said, adding that Rwanda's reputation for good governance, the ease of doing business, and its strategic location as a gateway to Africa all contribute to its investment appeal. By investing in Rwanda, companies like Flow Global are directly contributing to the growth of Rwanda’s digital financial services sector, while creating local jobs and contributing to the country's overall economic development. Flow Global's success has inspired other fintech companies to consider Kigali as a strategic entry point into the African market, increasing Rwanda’s profile on the global financial stage. Flow Global’s investment and its alignment with AFSIC, Africa's leading investment conference AFSIC-Investing in Africa, is the leading Africa-focused investment conference, held annually in London. Before launching its operations in Rwanda in 2022, Flow Global engaged with KIFC during AFSIC, which played a key role in facilitating its setup in the country. The 2024 edition of AFSIC, held from October 7-9, focused on nurturing investment and collaboration across the investment value chain and driving sustainable growth in Africa. As a London-headquartered fintech, Flow Global’s investment in Rwanda is aligned with AFSIC's themes this year. Flow Global’s presence in Rwanda demonstrates the growing appetite for fintech innovation across Africa. Their investment directly ties into AFSIC’s focus on how digital financial services can drive economic development on the continent, Kananura said. He noted that Flow Global’s decision to base part of its operations in Kigali mirrors the investment theme of identifying and capitalising on high-potential markets that have traditionally been underserved, a key discussion point at AFSIC. KIFC continues to support Flow Global’s success while showcasing the broader advantages it offers to fintech companies and investors.
