Key Highlights
- Microsoft and Flutterwave partner to accelerate payment innovation in Africa.
- The goal is to support the growth of African SMEs by improving access to digital financial services.
- Flutterwave will build their next-gen platform on Microsoft Azure for secure, scalable transactions.
- The collaboration will drive digital financial inclusion for unbanked small businesses.
Microsoft has announced an exciting 5-year strategic technology partnership with leading African payments company Flutterwave. The collaboration aims to build Flutterwave’s next-generation platform on Microsoft Azure, with the goal of accelerating payment innovation and growth for small businesses across Africa.
The Vital Role of African SMEs
Small and medium enterprises (SMEs) are the backbone of Africa’s economic progress and development. Current estimates show that around 90% of the continent’s workforce is employed within SMEs.
Beyond providing employment, these small businesses are often pioneering innovations that provide solutions to Africa’s most pressing challenges.
While SMEs and startups are the foundation of African economies, they face enormous obstacles to succeed. Research from the African Union Development Agency indicates that around 5 out of 7 SMEs in Africa will fail in their first year. Similarly, the average startup failure rate in Africa is around 54%.
Obstacles Facing African SMEs
A major challenge for SMEs and startups is limited access to financial services and inability to seamlessly transact across local payment methods. Although around 90% of transactions in Africa are still cash-based, nearly half of small businesses lack access to credit.
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“To drive sustainable growth in Nigeria, small businesses need the ability to participate more actively in local and global markets. This starts with digital financial inclusion. Building a more resilient and prosperous continent requires giving these businesses the digital financial services to not just survive, but thrive,” said Ola Williams, Microsoft Nigeria Country Manager.
Flutterwave’s Mission to Connect Businesses Globally
Flutterwave’s mission has been to overcome financial access challenges and connect businesses globally. It enables multiple payment modes including local and international cards, mobile wallets, and bank transfers.
Since inception, Flutterwave has made strides in democratizing payments in Africa. Collaborating with Microsoft will now fuel growth and revolutionize business payments across the continent.
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Transitioning from legacy infrastructure to Azure will enable Flutterwave to process high-volume payments seamlessly and securely at scale. Azure OpenAI Service also presents opportunities to scale offerings to millions of merchants worldwide.
“In our Flutterwave journey, we’ve always simplified payments and connected dreams to opportunities. Today, partnering with Microsoft feels like a reunion of visionaries and go-getters. We’re excited because this partnership is about transformation, not just transactions. We’re honored by Microsoft’s belief in our vision and capability. We’re not just dreaming of an inclusive digital Africa; we’re creating it,” said Flutterwave Founder and CEO Olugbenga ‘GB’ Agboola.
Flutterwave will also launch solutions on Azure Marketplace, including its SMB finance-as-a-service offering, extending its reach further.
“Microsoft is committed to accelerating African economic growth through technology. This involves enabling SMEs to acquire digital financial tools and services to succeed,” said Microsoft Africa President Lillian Barnard. “Greater technology and innovation access is key to building thriving local businesses, stronger economies, and a brighter future for all.”
Conclusion
The strategic Microsoft-Flutterwave partnership aims to boost payment innovation and support for African small businesses. By migrating to Azure and leveraging AI, Flutterwave can process transactions seamlessly at scale.
This will drive digital financial inclusion and growth for African SMEs. The collaboration reflects both companies’ commitment to enable economic progress and job creation across the continent.
