M-Pesa, Visa, and Onafriq Launch Groundbreaking Stablecoin Pilot in DRC!

Significant developments are unfolding across the African and Middle Eastern financial and telecom sectors, highlighted by innovations in cross-border payments, strategic market expansions, and stringent regulatory enforcement. These shifts underscore a dynamic landscape where technology, investment, and compliance are reshaping regional economies.

In a groundbreaking move, Visa, M-Pesa, and pan-African payments company Onafriq have launched a pilot program in the Democratic Republic of Congo (DRC) to test the use of stablecoins for settling cross-border mobile money transactions. This initiative aims to make international payments faster, cheaper, and more efficient for businesses and consumers by leveraging blockchain-powered stablecoins instead of traditional banking rails. Stablecoins, digital currencies pegged to assets like the US dollar, offer less volatility than typical cryptocurrencies. For M-Pesa users, this could eventually translate to quicker wallet top-ups, more affordable remittances, and smoother international transactions without altering their familiar mobile money experience. This pilot reflects Visa’s increasing interest in blockchain and stablecoins, following a June 2025 partnership with African fintech Yellow Card to explore stablecoin use cases, particularly for treasury operations and cross-border settlements. M-Pesa also ventured into stablecoins earlier this year through a collaboration with a UAE-based firm, marking its initial major step into blockchain-powered financial services beyond traditional mobile money. The DRC was chosen due to its rapid mobile money adoption and millions of unbanked citizens. This pilot builds on Visa’s recent launch of Visa Pay in the country, which links bank cards with mobile money wallets. Onafriq is providing the essential payment infrastructure, connecting hundreds of millions of bank accounts and mobile wallets across Africa. For Safaricom and Vodacom, this initiative is pivotal in transforming M-Pesa into a regional financial platform. If successful, stablecoin settlements could be expanded across more African markets, potentially revolutionizing how money moves across the continent.

Meanwhile, Kuwaiti telecom giant Zain is set to become Syria’s newest mobile network operator, securing a license to establish a network in the country. This marks one of the most substantial foreign investments in Syria’s telecom sector since its political transition. Under the agreement, Zain will hold a 75% stake in the new operation, with Syria’s sovereign wealth fund owning the remaining 25%. Zain is also expected to acquire the existing infrastructure, equipment, and facilities previously utilized by MTN Syria, enabling an immediate operational footprint. This deal signals the Syrian authorities' efforts to attract Gulf investors back into sectors severely impacted by years of conflict and international isolation. The telecom industry is viewed as a crucial sector for quick revival, as enhanced connectivity supports businesses, banking, education, and government services. This investment follows another significant agreement earlier this year with Saudi Arabia’s STC to develop Syria’s SilkLink fibre-optic network, indicating growing momentum in rebuilding the country’s digital infrastructure. MTN, which entered Syria in 2002, gradually scaled back operations due to regulatory disputes, sanctions, and a challenging environment, formally completing its exit in March 2026. The Syrian government then launched an international tender for a new 20-year mobile license. Following the overthrow of former president Bashar al-Assad in October 2025, ownership of MTN Syria’s assets was transferred to Syria’s newly created sovereign wealth fund, which is now partnering with Zain. Engineers from Zain have already inspected MTN’s cell towers and equipment across the country, accelerating preparations for the takeover. For Zain, this move expands its footprint across the Middle East, while for Syria, it represents a significant step towards reconnecting with regional capital and rebuilding critical infrastructure.

In Nigeria, the Central Bank of Nigeria (CBN) has revoked the operating licences of 46 microfinance banks, effective July 1, 2026. This decision impacts several fintech-linked lenders, including NOW NOW Digital Microfinance Bank, Sycamore Microfinance Bank, and OurPass Microfinance Bank, which are no longer authorized to operate. The revocation raises questions about how these fintech brands will continue to offer regulated financial products that rely on such licences, and customers are monitoring developments regarding existing accounts, loans, and deposits. The CBN cited non-compliance with regulatory requirements under the Banks and Other Financial Institutions Act (BOFIA) 2020 as the reason for the withdrawals. Issues included inadequate capital, insufficient assets to cover liabilities, prolonged inactivity, unauthorized operational closures, failure to commence business after approval, and cessation of financial intermediation. The apex bank stated this action is part of its ongoing efforts to strengthen Nigeria’s financial system, protect depositors, and ensure only compliant institutions remain operational. This move is consistent with the CBN's intensified clean-up of the financial sector, including previous revocations of primary mortgage banks in December 2025 and payment service providers in earlier years. Since assuming office in 2023, CBN Governor Olayemi Cardoso has prioritized stronger regulatory enforcement and financial system stability. For Nigeria’s rapidly expanding fintech ecosystem, this action serves as a stark reminder that innovation must be coupled with strict regulatory compliance. The CBN is demonstrating its determination to enforce capital, governance, and operational standards, irrespective of a company’s profile or popularity. The industry now awaits the responses of the affected firms, whether they will challenge the decision, seek new licences, or restructure their businesses to continue serving customers.