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Despite glimmers of profit, most African neobanks remain in the red
As African neobanks continue to grow, they'll have to effectively deal with impaired loans to consistently turn a profit.
This acquisition alone provided over R10 billion (~$507 million) in working capital to small and medium enterprises, and that activity contributed to TymeBank’s 30% year-on-year growth in its lending portfolio. Meanwhile, FairMoney, lacking sizable deposits, turned to Nigeria’s capital markets, launching a private note program worth N10 billion ($23 million) to support its loan book growth and short-term liquidity needs. Conversely, in a profitable fiscal 2022, the Lendable-backed fintech had reduced credit impairment by 67% compared to the preceding year and reported approximately $6 million in net revenues.
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