Stronger earnings and expanding digital payments led the week’s African financial sector developments. MTN’s first-half results highlighted its expansion beyond basic mobile money, with $2.7 billion in loans facilitated and a rising revenue contribution from advanced services. Afreximbank and Equity meanwhile reported stronger profits alongside improvements in asset quality.

Financing activity spanned agribusiness working capital and longer-term infrastructure investment. Agribusiness group ETG’s sustainability-linked loan expanded to $600 million, while KCB Group and Africa Finance Corporation (AFC) introduced structures to mobilise funding for sustainable assets and climate-resilient infrastructure. The East African Community (EAC) also advanced implementation of its regional payments masterplan, while South African inflation eased to 4.3%.

Read more on the week’s key developments:

1. MTN fintech transaction value reaches $330.5 billion as lending expands

MTN Group reported on 24 August that fintech transaction value increased 33.8% in constant currency to $330.5 billion in the first half of 2026, while Mobile Money (MoMo) monthly active users rose 12.1% to 70.8 million. Transaction volumes increased 17.2% to 13 billion, while the active agent network reached 1.4 million and active fintech merchants increased by more than 18% to 2.3 million. Advanced services led overall fintech revenue growth.

The simultaneous growth in transaction value, users, agents and merchants provides stronger evidence of ecosystem expansion than transaction volumes alone. MTN is also increasing the contribution of services beyond basic mobile money. Advanced-services revenue grew 31.8% in constant currency, accounting for 37.4% of MoMo revenue excluding airtime advance, up four percentage points. Loan value facilitated rose 78.3% in constant currency to $2.7 billion, supported by expansion and new products in Ghana, Uganda, Cameroon and Rwanda. MTN said its priorities include further rollout of MoMo Advance and shifting its revenue mix towards payments, lending and other advanced services.

2. Afreximbank net income rises 30% to $534.7 million

The African Export-Import Bank reported on 24 August that first-half 2026 net income increased 30% to $534.7 million, from $412.7 million a year earlier. Net interest income rose 22% to around $1 billion, while net loans and advances increased 5.7% to $35.4 billion from $33.5 billion at end-2025. Afreximbank also reported a non-performing loan ratio of 2.20%, down from 2.43% at end-2025.

Loan growth and higher net interest income show that profitability expanded alongside financing activity. Fee and commission income also rose 15% to $71.1 million, supported by guarantees, letters of credit and advisory services. The improvement in the non-performing loan ratio provides an important asset-quality indicator as the institution expands its financing portfolio across African markets.

3. South African inflation slows to 4.3% in July

Statistics South Africa reported on 19 August that annual consumer inflation slowed to 4.3% in July 2026, from 5.0% in June, marking the first moderation in five months. The consumer price index increased 0.2% month on month, compared with 0.7% in June. The slowdown was supported by easing fuel-price pressures and more moderate price increases across several consumer categories.

The moderation reduces some of the price pressure facing households and businesses. Food and non-alcoholic beverage inflation eased to 0.9%, its lowest level since June 2010, although fuel prices remained 20.6% above a year earlier. For the financial sector, sustained disinflation could improve the backdrop for borrowing costs and credit demand if it gives the South African Reserve Bank greater flexibility on monetary policy.

4. Equity Group profit rises 32% as regional franchise expands

Equity Group Holdings reported on 19 August that first-half 2026 profit after tax increased 32% to KES 45.5 billion ($352 million), from KES 34.6 billion a year earlier. The group’s performance was supported by balance-sheet growth and its regional banking operations across Kenya, the Democratic Republic of Congo, Rwanda, Uganda, Tanzania and South Sudan. Regional subsidiaries contributed 42% of banking profits and 47% of banking revenue.

The regional contribution is important because Equity’s expansion has progressed beyond geographic presence towards a more diversified operating base. This reduces reliance on the Kenyan franchise while increasing exposure to different credit, currency and regulatory environments. The quality of regional growth therefore matters as much as its scale. Alongside that expansion, the group’s non-performing loan ratio declined to 9.5% from 13.7% a year earlier, while the cost of risk eased to 1.4% from 1.7%.

5. KCB establishes framework for KES 300 billion sustainability note programme

KCB Group unveiled its Sustainability Bond Framework on 19 August ahead of a proposed KES 300 billion ($2.3 billion), five-year medium-term note programme, subject to regulatory approval. The framework covers eligible green, blue and social activities including renewable energy, clean transport, water management, green buildings, affordable housing and financing for underserved groups. The programme provides a structure through which multiple sustainability-labelled instruments can be issued.

This could diversify KCB’s funding sources while linking proceeds to defined sustainable assets. The bank plans an initial tranche of up to KES 100 billion, subject to approval. The KES 300 billion figure is the proposed programme ceiling. Actual issuance volumes and pricing will determine the programme’s contribution to KCB’s funding mix.

6. EAC moves regional cross-border payments masterplan into implementation

The East African Community (EAC) announced on 24 August that it had inaugurated three technical working groups to support implementation of the EAC Cross-Border Payment System Masterplan. The groups will address the technical and institutional requirements for greater regional payment connectivity across the EAC’s eight partner states. The initiative brings together central banks and other stakeholders to develop a more interoperable environment for cross-border payments.

mechanism for resolving technical and regulatory barriers across national systems. Their work includes a monitoring framework and proposed arrangements for cooperative oversight, covering supervisory responsibilities, information sharing and crisis management. Successful implementation could reduce fragmentation between domestic payment infrastructures and improve regional settlement. System connectivity and transaction costs will determine whether the masterplan materially improves regional payments.

7. FMO and TDB expand ETG sustainability-linked loan to $600 million

FMO and Trade and Development Bank Group (TDB Group) announced on 25 August that a sustainability-linked syndicated loan for African agribusiness ETG had expanded to $600 million, from an initial $394 million. The increase followed a larger commitment from FinDev Canada and the addition of the Asian Development Bank, Cassa Depositi e Prestiti, Finnfund, Impact Fund Denmark and OeEB. The facility supports ETG’s working-capital requirements, primarily across African agricultural value chains.

The additional $206 million brings more lenders into an existing financing arrangement and diversifies ETG’s sources of working capital. Its interest margin is linked to agreed environmental and social performance targets, including measures relating to forests and support for farmers. This connects the cost of funding to sustainability performance across an agribusiness network spanning inputs, procurement, processing and distribution.

8. Absa cuts SME onboarding from two days to under 30 minutes

Absa Group reported on 19 August that technology investment produced measurable improvements in lending, SME banking and platform performance during the first half of 2026. Straight-through processing reduced SME account-opening time by 98.96%, from two days to under 30 minutes, while the group reported faster credit decisioning. Service availability reached 99.97%, with more than 33,000 credential compromises prevented.

The results show Absa’s technology programme extending into customer onboarding, credit processing and service reliability. Faster SME onboarding addresses a traditionally documentation-intensive process. Financial spreading, the preparation of financial information for credit assessment, now takes four hours compared with two to five days previously. The group also consolidated customer information from 32 systems into a single AI-enabled master data platform. Commercial impact remains less established, particularly whether the efficiency gains are translating into profitable growth.

9. AFC launches Nigerian platform under $750 million climate-resilient infrastructure fund

AFC Capital Partners, the asset-management subsidiary of Africa Finance Corporation, announced on 24 August the launch of Infrastructure Climate-Resilient Fund Nigeria, a closed-end fund registered with Nigeria’s Securities and Exchange Commission. The vehicle is designed to mobilise Nigerian institutional capital for climate-resilient infrastructure. It forms part of the wider $750 million Infrastructure Climate-Resilient Fund, which has secured a $253 million first-loss commitment from the Green Climate Fund and targets up to $3.7 billion in total financing.

The Nigerian platform creates a dedicated channel for domestic institutional savings to participate in infrastructure investment, complementing international development and institutional capital. This could broaden the long-term funding pool available for African infrastructure. The wider fund’s first-loss support is intended to reduce risk for other investors. The announcement did not disclose a separate total for commitments to the Nigerian vehicle. Domestic investor commitments and first-close size will show whether the platform can mobilise capital at meaningful scale.

10. FirstRand secures JSE approval for transition-finance framework

FirstRand and FirstRand Bank announced on 20 August that the Johannesburg Stock Exchange had approved their Transition Finance Framework and its second-party opinion from Moody’s. The framework establishes criteria for transition use-of-proceeds instruments, directing funding towards activities that support decarbonisation and economic transition.

The framework provides a funding structure for activities that may not qualify as conventional green finance but are relevant to reducing emissions in carbon-intensive sectors. This potentially broadens the range of assets FirstRand can finance through labelled instruments. It was already used for a $150 million facility from British International Investment announced in November 2025. This week’s development is the JSE approval, with no new issuance announced.

What to watch

The CIBN Annual Banking and Finance Conference in Abuja (8–9 September), the Association of African Central Banks Annual Meetings in Nairobi (13–18 September) and the South African Reserve Bank’s monetary policy decision (23 September).