Crypto as Core Infrastructure in Emerging Markets: Why Ezeebit and Raba Partnership Are Winning

Africa's financial landscape is undergoing a seismic shift, driven by the urgent need to bridge a $100 billion credit gap for SMEs and a $10 trillion cross-border payments market fragmented by high fees and slow settlement times. At the heart of this transformation lies a growing reliance on utility-driven crypto adoption, where stablecoins and blockchain-based solutions are no longer speculative experiments but foundational infrastructure. The partnership between Ezeebit, a South African crypto payments startup, and Raba, a venture capital firm with a focus on fintech, exemplifies this trend. By leveraging stablecoin settlements, instant payment systems, and cross-border interoperability, the duo is not only addressing Africa's payments gap but also redefining what financial inclusion means in the 21st century.

The Ezeebit-Raba Model: Crypto as Practical Infrastructure

Ezeebit's core offering-enabling merchants to accept crypto and stablecoin payments with low fees and instant settlement-has already processed over 30,000 transactions since 2023, accumulating millions in gross merchandise value. This growth is underpinned by Raba's $2.05 million seed investment, which signals institutional confidence in crypto's utility beyond speculative trading. Unlike traditional payment systems plagued by delays and high costs, Ezeebit's stablecoin-driven model offers a hedge against local currency depreciation while reducing transaction fees by up to 60%. For SMEs in Nigeria and Kenya-markets where Ezeebit plans to expand-this translates to tangible benefits: faster access to liquidity, reduced reliance on cash, and the ability to participate in global supply chains without intermediaries.

The partnership's success is further amplified by Africa's broader digital payments boom. In 2024 alone, the continent's 36 instant payment systems processed 64 billion transactions worth nearly $2 trillion, with Nigeria's NIBSS Instant Payment System (NIP) leading the charge by processing 11 billion transactions. Ezeebit's integration into these systems positions it to capitalize on a market where 35% of SME payments are still conducted in cash, a gap that digital infrastructure can rapidly close.

Regulatory Tailwinds and Cross-Border Synergies

Africa's regulatory environment, once a barrier to innovation, is now a catalyst. The Pan-African Payment and Settlement System (PAPSS), which enables instant cross-border transactions, is projected to save over $5 billion annually in transaction costs. Ezeebit and Raba's focus on stablecoin settlements aligns perfectly with PAPSS's goals, reducing dependency on the U.S. dollar and fostering regional economic integration. For instance, Nigeria's NIP has already demonstrated the potential of real-time systems, saving SMEs an estimated $296 million in 2021 alone.

Regulatory clarity is also improving. In 2025, stablecoins accounted for 30% of Africa's on-chain crypto transaction volumes, a figure expected to rise as more countries adopt frameworks that balance innovation with consumer protection. Ezeebit's emphasis on compliance-such as multi-currency support and ZAR settlement-ensures it remains adaptable to evolving regulations, a critical factor for attracting global investors.

The Bigger Picture: Financial Inclusion and Economic Resilience

The impact of Ezeebit and Raba's work extends beyond transaction volumes. By enabling SMEs to access digital payment tools, they are directly contributing to a 0.70% increase in financial inclusion for every 1% rise in fintech adoption. This is particularly transformative for women, youth, and rural communities, who often lack access to traditional banking. For example, mobile money platforms like M-Pesa have already facilitated $900 billion in transactions by 2023, proving that digital infrastructure can democratize financial access.

Moreover, the partnership's focus on SMEs-responsible for 90% of businesses and 50% of GDP in Africa-positions it to address the continent's $331 billion financing gap. By embedding crypto into working capital management, Ezeebit helps SMEs hedge against currency volatility and streamline operations, creating a flywheel effect where financial stability fuels further growth.

Challenges and the Path Forward

Despite these strides, challenges remain. Infrastructure fragmentation and cybersecurity risks continue to hinder adoption, particularly in rural areas. However, the East African Community's pilot project linking Rwanda and Tanzania-aimed at reducing cross-border transaction costs-demonstrates the potential for regional collaboration to overcome these hurdles. For Ezeebit and Raba, the key will be to scale their solutions while maintaining a customer-centric approach, ensuring that digital tools align with the practical needs of SMEs rather than imposing complex, one-size-fits-all solutions.

Investment Thesis: A High-Growth, Sustainable Play

The Ezeebit-Raba partnership is not just a fintech story-it's a macroeconomic play on Africa's digital transformation. With African fintechs growing at three times the rate of traditional institutions and representing less than 1% of financial services revenues today, the upside is vast. Ezeebit's scalable model, combined with Raba's strategic investments, positions them to capture a significant share of a market projected to grow eightfold, reaching $30 billion in fintech revenues by 2025.

For investors, the appeal lies in the convergence of utility-driven crypto adoption, regulatory tailwinds, and Africa's urgent need for financial infrastructure. Ezeebit's focus on SMEs-both as users and beneficiaries of its platform-creates a durable moat, while Raba's institutional backing ensures access to capital and global networks. As the continent's first mature instant payment systems emerge and cross-border interoperability improves, the partnership is well-positioned to become a cornerstone of Africa's digital economy.