Aruwa Capital Management has invested $2 million in Sika Financial Group, a Ghana-based fintech company, to expand its cross-border financial infrastructure for businesses across Africa. The investment, announced this week, will be used to scale Sika's platform, which provides payments, treasury management, and business finance solutions. The company aims to address the persistent challenges of moving money between African countries, a process often characterized by high costs and operational delays.

Sika Financial Group, founded by CEO Kofi Genfi, operates with a primary focus on facilitating trade and financial operations for small and medium-sized enterprises. The platform integrates services for multi-currency accounts, international payments, and access to working capital. Genfi stated that the capital injection will accelerate the company's mission to build a more connected financial ecosystem for African businesses, reducing reliance on correspondent banking networks that can be slow and expensive.

The investment from Aruwa Capital, a Lagos-based growth equity firm that focuses on gender-lens investing, underscores the continued investor interest in Africa's financial infrastructure segment. Aruwa typically backs companies that provide essential goods and services, often with a focus on female founders or leadership. The firm's portfolio includes investments in sectors such as healthcare, fintech, and fast-moving consumer goods across West Africa.

Cross-border payments remain a significant hurdle for intra-African trade, despite the launch of the African Continental Free Trade Area (AfCFTA). Businesses frequently face foreign exchange complexities, limited transparency, and settlement times that can extend for days. Fintech companies like Sika are positioning themselves as alternatives to traditional banking channels by leveraging digital platforms to streamline these processes.

In a statement, Aruwa Capital's founding partner, Adesuwa Okunbo Rhodes, highlighted the strategic importance of the investment.

Supporting Sika's expansion aligns with our thesis of backing companies that are solving fundamental infrastructure gaps. Efficient cross-border finance is critical for unlocking the potential of African SMEs and regional trade,

Rhodes said. The funding is expected to support Sika's geographic expansion, technology development, and team growth.

The announcement comes amid a broader wave of investment in African fintech infrastructure. In recent weeks, other companies have also secured funding to deepen their offerings. CreditChek, a Nigerian credit data startup, raised $600,000 to expand its infrastructure into East Africa. Separately, Myka, an insurance technology platform, secured pre-seed capital from Ventures Platform and TLcom Capital to digitize Nigeria's insurance pipeline. These moves indicate a sustained focus from venture capital on the foundational layers of Africa's digital economy.

For Sika, the immediate focus will be on scaling its existing operations and enhancing its regulatory compliance across multiple jurisdictions. The company is licensed by the Bank of Ghana and will need to navigate the diverse regulatory landscapes of other African markets as it grows. Success in this arena could position it as a key player in facilitating the smoother flow of capital envisioned by regional economic integration agreements.