Flutterwave CEO, GB Agboola, discusses restoring trust and fortifying Africa's payment sector's future.
CEO Olugbenga "GB" Agboola was praised for his leadership and labeled as a pioneer in African fintech, offering electronic payment solutions to businesses across the continent.
Eventually, there was a sequence of damaging accusations of workplace misconduct and claims of monetary laundering in Kenya, which jolted the industry. At the time, Flutterwave disclaimed any financial misconduct, stated it had attempted to settle a harassment issue peacefully, and had a zero-tolerance policy towards bullying — yet the firm's reputation suffered a blow.
Nevertheless, Agboola states that Flutterwave has weathered the storm and grown even stronger.
In November 2023, Kenyan authorities exonerated the company of all money laundering accusations. As well, a former employee who filed a lawsuit against the company for reputational harm and mental anguish lost her appeal for $900k; however, the initial $2,500 previously granted by a Kenyan court was upheld.
In his first major interview since the allegations, Agabolia told CNN that Flutterwave is on a mission to restore trust and improve its governance practices.
“Trust is our core business,” Agbolia said. “We've been working hard to rebuild that trust.”
“We have concentrated on our corporate governance, infrastructure, compliance system, and are going to keep doing so as a company, and that's why we brought Mitesh in,” he added.
In September, Flutterwave announced it had appointed Mitesh Popat as its chief financial officer. Popat, a former Citibank executive with extensive experience operating on the continent, stated:
“The important factor for me, as someone coming from a very structured, very regulated bank, and transitioning into a startup, was striking a balance so that I could introduce enough structure into the company so that we are responsible to our banking partners, investors, regulators, and customers, while still maintaining the agility required of a startup to continue to innovate and expand.”
Local media has reported that Flutterwave has also faced security incidents. Flutterwave stated in a statement that it is "dedicated to doing our part to ensure the security of the financial system in Africa," citing its collaboration with Nigeria's Economic and Financial Crime Commission as an example, and adding that it has "invested heavily in ensuring the greatest level of security across all our products and have a team of world-class talents across finance, risk, legal, and compliance and certifications."
Bawo Egbakhumeh, a senior compliance and anti-money laundering specialist not connected with Flutterwave, is familiar with the governance and operational challenges faced by expanding companies.
She says Flutterwave's rapid growth exposed faults in its governance, compliance, risk management strategies, and inadequate internal controls. “Its initial success, which was centered more on customer service delivery, outpaced the company’s ability to establish strong internal structures, vulnerability to fraud, and weak governance oversight,” Egbakhumeh stated.
However, she added that in recent years, “Flutterwave seems to have responded by tightening its governance, improved its compliance programs with a stronger focus on accountability and transparency.”
“International partnerships and investor pressure appear to have pushed the company to make necessary reforms and adherence to improved governance standards,” she concluded.
A unified Africa
Agboola states that in the previous year, the company has secured new payment licenses in Ghana, Zambia, Uganda, and Rwanda, and more than 20 in the United States through a major partner bank, enabling cross-border transactions from the United States to Africa.
While the company has previously discussed plans to IPO, Agboola says the company is “focused on expansion and deepening the company’s market penetration in enterprise payments.”
“IPO is one of many growth opportunities on the table, and we continue to put measures in place to be well-prepared for that subsequent stage of our growth,” he added.
Beyond the focus on governance and structure, Agboola envisions a future where Africa's diverse payment systems are seamlessly integrated into a unified marketplace. “Africa today is not a country, but we want to make it feel like one,” he said.
Agboola identified the challenges of navigating the continent's fragmented payment systems, such as M-Pesa in Kenya and bank transfers in Nigeria, which complicate cross-border transactions.
“A money transfer from Nigeria to Ghana could take up to three days,” Agboola explained. “Our goal is to ensure that businesses and consumers can transact across borders as easily as they do within them.”
Based in San Francisco but still heavily focused on the African market, recently, the company partnered with MainStreet Bank, granting access to 49 US states and enabling smooth cross-border transactions for African businesses using its Send App, Agboola said.
He added that this collaboration, coupled with the integration of American Express into Flutterwave's payment network, represents a significant victory for African businesses, enabling them to reach millions of new customers globally.
“These partnerships are game-changers,” Agboola noted. “With MainStreet Bank, we’re not just connecting Africa with the US; we’re enabling faster, more reliable payments for merchants and consumers across both continents.”
Beyond partnerships, Flutterwave is also investing heavily in new technologies like AI to improve its payment infrastructure.
“We are committed to staying ahead of the curve by leveraging AI to improve our compliance, monitoring, and risk management,” Agboola concluded.
After securing new payment licenses in various African countries and the United States, Agboola envisions a future where Africa's diverse payment systems are unified, allowing for seamless cross-border transactions. This goal is crucial for businesses and consumers alike, as a money transfer from Nigeria to Ghana currently takes up to three days.
Despite facing challenges in governance and compliance in the past, Flutterwave has made significant strides in improving its internal structures and adhering to improved governance standards, as noted by compliance specialist Bawo Egbakhumeh.
