In a groundbreaking move set to transform the landscape of digital payments in Africa, Microsoft has announced a five-year strategic technology partnership with Flutterwave. This collaboration aims to accelerate payment innovation across the continent, focusing on fostering growth among small businesses.

At the heart of this partnership lies Flutterwave’s commitment to building its next-generation platform on Microsoft Azure. This strategic decision is poised to enhance Flutterwave’s ability to process large-scale, high-volume payments, ensuring its vast clientele a seamless and secure payment experience.

The significance of this alliance cannot be overstated, especially considering the critical role that small and medium-sized enterprises (SMEs) play in Africa’s economic fabric. Estimates suggest that around 90 percent of the continent’s population is employed within SMEs. These businesses are not just economic drivers but also epicenters of innovation, often providing solutions to Africa’s most pressing societal challenges.

However, the path to success for African SMEs and startups is fraught with obstacles. Alarming statistics reveal that approximately five African SMEs fail within their first year, while the average startup failure rate hovers around 54 percent. A key factor contributing to this high attrition rate is the need for more access to financial services and the inability to transact seamlessly across local payment methods.

Ola Williams, Country Manager for Microsoft Nigeria, underscores the importance of digital financial inclusion in driving sustainable growth. “To drive sustainable growth in Nigeria, small businesses need the ability to participate more actively in the local and even global marketplace. This begins with digital financial inclusion,” Williams states, emphasizing the need to equip businesses with the digital financial tools necessary for survival and prosperity.

Enter Flutterwave, whose mission aligns perfectly with addressing these challenges. The company has democratized payments in Africa by enabling multiple payment modes, including local and international cards, mobile wallets, and bank transfers. Now, through its collaboration with Microsoft, Flutterwave is poised to fuel growth and further revolutionize payments for businesses across the continent.

Olugbenga ‘GB’ Agboola, Founder and CEO of Flutterwave, expresses his enthusiasm for the partnership: “In our journey at Flutterwave, we’ve always strived to touch lives by simplifying payments and connecting dreams to opportunities. Today, as we join hands with Microsoft, it feels like a family reunion of visionaries and go-getters.” Agboola’s words reflect the transformative potential of this collaboration, emphasizing that it’s not just about transactions but broader economic transformation.

The partnership extends beyond mere technological integration. Flutterwave is set to launch transactable solutions on Azure Marketplace, including its SMB finance-as-a-service offering. This move is expected to expand Flutterwave’s reach and impact significantly.

Lillian Barnard, President of Microsoft Africa, reinforces Microsoft’s commitment to accelerating economic growth in Africa through technology. “We believe greater access to technology and innovation holds the key to building thriving local businesses that will create stronger economies to enable a brighter future for all,” Barnard states, underlining the far-reaching implications of this partnership.

By leveraging Azure’s capabilities, Flutterwave is not just enhancing its services but is positioning itself to drive significant change in Africa’s digital payment ecosystem. The partnership promises to address critical challenges SMEs face, potentially reducing the failure rate of small businesses and startups by providing them with robust, accessible financial tools.

Furthermore, this collaboration between Flutterwave and Microsoft represents a significant step towards realizing the vision of a more financially inclusive Africa. By making digital financial services more accessible and efficient, the partnership has the potential to unlock new opportunities for millions of African entrepreneurs and small business owners.

As this strategic alliance unfolds over the next five years, it’s expected to catalyze innovation in the African fintech space, setting new standards for payment processing and financial inclusion. The ripple effects of this partnership extend far beyond the immediate beneficiaries, potentially reshaping the economic landscape of the entire continent.

In conclusion, the Flutterwave-Microsoft partnership is a testament to the power of collaboration between global technology leaders and innovative African startups. As Flutterwave continues to build on Microsoft Azure, the future of digital payments in Africa looks increasingly promising. It has the potential to drive sustainable economic growth and foster a new era of financial inclusion across the continent.