MTN Group's Nigerian fintech subsidiary, Nomba, has acquired the assets of Canadian payments software company Kopo Kopo, the companies announced this week. The deal, for which financial terms were not disclosed, is designed to enhance Nomba's ability to provide cross-border payment services to small and medium-sized enterprises (SMEs) across Africa.
Strategic Expansion for a Major Player
Nomba, founded in 2017 and formerly known as Kudi, is a licensed payment solutions provider in Nigeria. It processes billions of naira in transactions annually for over 300,000 businesses, offering services including point-of-sale terminals, online payment gateways, and business management tools. The company is a key part of the fintech portfolio of MTN Group, Africa's largest mobile operator, which has over 290 million subscribers across 19 markets.
The acquisition target, Kopo Kopo, is a Canadian-based company that has operated in Africa for over a decade, providing merchant payment and data analytics software. Its platform has been used by businesses in Kenya, Rwanda, and Ghana. The deal will see Nomba integrate Kopo Kopo's technology to build a new cross-border payments product tailored for African SMEs, with a focus on trade corridors within the continent.
Context: A Push for Intra-African Trade
The transaction aligns with broader efforts to boost digital financial integration in Africa, a key pillar of the African Continental Free Trade Area (AfCFTA). The agreement, which aims to create a single market for goods and services, has highlighted the need for smoother, cheaper payment systems to underpin increased trade. Cross-border payments in Africa have historically been characterized by high costs, slow settlement times, and regulatory complexity.
Nigeria, Africa's most populous nation with over 200 million people, is a focal point for this activity. Its fintech sector, regulated by the Central Bank of Nigeria (CBN), is one of the continent's most vibrant, with high mobile money adoption driven by telecom-led services. The CBN has recently emphasized facilitating international money transfer services and supporting the growth of payment service banks.
"This acquisition is a strategic step in our mission to build the infrastructure that will power commerce across Africa," said Yinka Adewale, co-founder and CEO of Nomba, in a statement. "By leveraging Kopo Kopo's expertise, we can address a critical pain point for African businesses looking to trade across borders."
Industry Trend: Consolidation and Cross-Border Focus
The move is part of a wider trend of consolidation and strategic investment within Africa's fintech landscape, as companies seek scale and expanded service offerings. Major players, including MTN's Mobile Money, Airtel Money, and independent fintechs like Flutterwave and MFS Africa, are increasingly focusing on facilitating Pan-African payments and commerce.
Analysts note that such acquisitions allow established fintechs to accelerate product development and gain specialized technical capabilities, rather than building them in-house. The success of these ventures often hinges on navigating diverse regulatory regimes and building interoperability between different national payment systems.
The newly integrated platform from Nomba is expected to launch in the coming months, initially targeting trade corridors involving Nigeria, Ghana, Kenya, and Rwanda. The initiative will test the ability of fintech solutions to lower barriers for SMEs participating in regional value chains, a stated goal of both national governments and the AfCFTA Secretariat.