Ghana’s Affinity Africa bags $8M to Expand Digital Banking Services

Ghanaian digital bank Affinity Africa has successfully raised $8 million in funding to scale its operations, reinforcing Ghana’s growing influence in Africa’s fintech landscape, which has historically been dominated by Nigeria, South Africa, and Egypt.

The funding round was spearheaded by prominent European venture capital firms, including Germany-based Grazia Equity and London’s BACKED VC, with additional investments from Enza Capital and Launch Africa.

Having launched in October 2023, Affinity Africa has rapidly onboarded over 50,000 customers, many of whom are accessing formal banking services for the first time. A notable portion of these new users are women engaged in the informal sector, underscoring the bank’s impact on financial inclusion.

Unlike Nigeria, where fintech companies can readily obtain microfinance licenses, Ghana’s stringent banking regulations have made it challenging for digital banks to gain traction. Affinity Africa’s CEO, Tarek Mouganie, highlighted that the bank had to demonstrate its ability to effectively manage risk and achieve financial sustainability before securing regulatory approval.

Mouganie’s path to establishing Affinity Africa is particularly inspiring. A UK-educated investment banker, he previously worked at a $160 billion investment firm and played a role in high-profile deals, including Visa’s initial public offering. However, upon returning to Ghana a decade ago, he identified a significant gap in financial inclusion and made it his mission to bridge it.

To bring his vision to life, he made a bold move—selling his house in London to acquire a microfinance bank, laying the groundwork for what would become Affinity Africa. Today, the bank provides:

– Free savings and current accounts
– Instant credit scoring
– Loans with monthly interest rates ranging from 3 to 7 percent

So far, Affinity Africa has disbursed over $15 million in loans, maintaining strong repayment rates. The bank’s approach blends digital banking with a physical presence through 30 field agents who assist small businesses in transitioning to digital banking. The model is proving effective—over 50 percent of customers onboarded by agents have fully migrated to the bank’s mobile app, showcasing the high level of trust in the platform.

With revenue increasing by 37 percent each month, Affinity Africa is demonstrating that Ghana is prepared for a digital banking revolution. This latest funding round represents a significant milestone in the bank’s journey toward driving widespread financial inclusion across the country.