Nigeria's fintech unicorn, Flutterwave, has joined the Circle Payments Network (CPN), a move that is set to revolutionize cross-border payments in Africa. The partnership will enable Flutterwave to leverage CPN's stablecoin-based payment system, facilitating fast and cost-effective transactions across the globe.

The Circle Payments Network, launched by Circle Internet Group, connects banks, neobanks, payment service providers, virtual asset firms, and digital wallets worldwide, allowing for real-time settlement of cross-border payments using regulated stablecoins. This development is significant, given that traditional cross-border payment systems are often slow and costly, with fees averaging above 6% and settlement times taking over a day, according to the World Bank.

By joining CPN, Flutterwave will be able to reduce settlement timelines for its enterprise merchants who move bulk money at scale. The fintech will also be able to help small businesses across the continent pay international vendors and suppliers almost instantly. This is a major boost for Flutterwave's cross-border product, Send, which will now be able to offer faster and cheaper transactions using stablecoins like USDC and EURC.

In other fintech news, Kenya's Central Bank is proposing a new framework that will peg lending rates to the Central Bank Rate (CBR). The move is aimed at addressing the high lending rates in the country, which have been a major obstacle to economic growth. The proposed framework will set interest rates by adding a premium to the CBR, which will include the bank's operating costs, the return expected by shareholders, and the borrower's risk profile.

Meanwhile, IZI Electric, a Rwanda-based e-mobility startup, has launched an electric bus designed to challenge Roam Buses and redefine long-distance public transport in East Africa. The Impala E30, a 30-seater electric coach, comes with a 10-year/1-million-kilometer warranty on its battery system, a major leap from the standard 4-year, 400,000-kilometer warranties offered by other players.

In investment news, Crossfin, the venture capital arm of a prominent South African fintech group, has invested in DigiSquad, a Johannesburg-based fintech company specializing in payment advisory and software solutions. The investment is expected to accelerate DigiSquad's regional expansion and further development of its platform, positioning it to compete with larger incumbents in the payments space.

Finally, the Federal Ministry of Industry, Trade and Investment has launched a digital services survey to propel Nigerian innovation across Africa. The survey aims to gather information from Nigerian digital service providers on their current offerings and expansion plans, with a view to supporting the growth of the digital economy in Africa.

The African tech ecosystem continues to evolve, with innovative startups and fintech companies driving growth and development across the continent. As the industry continues to grow, it will be interesting to see how these developments shape the future of payments, finance, and innovation in Africa.