Egyptian fintech startup Valu is set to make history by listing 20.5% of its shares on the Egyptian Exchange (EGX) in 2026, becoming the country's second-ever fintech IPO after Fawry. This move is expected to pave the way for more fintech initial public offerings (IPOs) in Africa, as the continent's fintech industry continues to grow and mature.

Valu, which rebranded from a buy-now-pay-later (BNPL) startup in 2023 to offer broader consumer finance products, was last publicly valued at $247 million in 2022 after securing a $12.4 million equity funding from Saudi investor Alhokair family. The startup's decision to list on the EGX is a testament to the growing confidence in Africa's fintech sector, which has seen significant growth in recent years.

The EGX, which has struggled with liquidity challenges in recent years, is in a much stronger position to handle a fintech IPO like Valu. The exchange has been pushing for more listings to deepen the market, and the Egyptian government has introduced policies to attract foreign investors. The listing of Valu is likely to be good timing, as the EGX experienced a dry spell in 2024 with only two IPOs, owing to retail investors temporarily turning away their interest amid the harsh market.

Since Q4 2024, the floated Egyptian Pound and the easing inflation have reduced economic pressure in the country, creating a more favorable environment for IPOs. The listing of another familiar fintech on the exchange will also be a breath of fresh air for the bourse, which has relied on real estate listings in the past. If investor appetite holds steady, Valu's IPO could not only succeed but also set a precedent for more fintechs to go public in Egypt.

Other African countries can borrow from Egypt's playbook, which has created an environment where startups see public listings as a viable growth strategy. A combination of clear regulatory frameworks, government-backed digital transformation programs, and dedicated tech hubs have contributed to the growth of Africa's fintech industry.

In related news, Quidax, a Nigerian provisionally-licensed crypto startup, has listed the cNGN, the Naira-backed stablecoin, on its platform. The blockchain payments space is evolving quickly, with the payment volume for stablecoins reaching $2.5 billion and the velocity of money peaking at $622 million. Stablecoins are emerging as a cheaper alternative to sending money across Africa, and their utility is expected to apply to intra-continental payments.

Meanwhile, HabariPay, a fintech subsidiary of one of Nigeria's biggest banks, is betting on transfers as the future of Nigeria's payments. The company has integrated with 13 banks and several major fintechs, providing payment rails and switching capabilities. HabariPay believes that making transfers more accessible and frictionless could replace agent networks entirely.

In South Africa, the annual inflation rate remained unchanged at 3.2% in February, defying expectations of a slight uptick to 3.3%. The stability keeps inflation comfortably below the South African Reserve Bank's (SARB) mid-point target of 4.5%. A continued decline in food inflation contributed significantly to the latest inflation reading, providing relief to consumers.

The SARB is expected to maintain the interest rate at 7.50% in its upcoming meeting, while some analysts anticipate a 25 basis point (bp) cut. The prevailing sentiment leans towards a pause, especially given external uncertainties like global trade tensions and domestic fiscal challenges.

The Moonshot Deal Book is launching soon, packed with a handpicked selection of the most promising startups. The exclusive resource is designed to connect top investors with high-potential opportunities. Interested parties can sign up on the waitlist to access the TC Dealbook.

Ruth Ikegah, a microbiology graduate turned technical writer, has become the first African woman to win a GitHub Star award, speak at the United Nations, and advocate for Africa's open-source community. Today, she earns over $70,000 annually and leads initiatives that help African developers build sustainable careers in open source.

For more insights on the business and economy of tech in Africa, sign up for TechCabal's newsletters, including The Next Wave and TC Scoops.