In response to the growing challenges African startups face in accessing reliable banking services for their US holding companies, Zephyr Africa has launched a dedicated treasury management service.
Zephyr Management, L.P. (“Zephyr”) is a leading asset and wealth manager, having invested over $1.2 bn across emerging markets since their founding in 1994 and built a track record in the private equity, wealth management, and corporate treasury spaces in North America, Africa, and Asia. Zephyr has invested in Africa for over 30 years and is now bringing that experience to Sub-Saharan Africa from their office in Nairobi.
This initiative comes as U.S.-based fintech, Mercury, recently announced it was closing all accounts for businesses operating in 13 African countries, highlighting the increasing difficulty African businesses face when attempting to secure banking and treasury solutions with global financial institutions.
Addressing a Critical Gap
African startups often encounter hurdles in managing their cash reserves securely while seeking opportunities to earn competitive yields.
Zephyr’s treasury solution addresses this need. With over 30 years of experience in asset management and a longstanding commitment to the markets in which they operate, Zephyr’s goal is to offer a stable and yield-focused portfolio that includes U.S. Treasury securities and AAA-rated corporate fixed-income investments. The service intends to provide flexible liquidity, seamless integration with existing financial systems, and full transparency through real-time account access.
Custom Solutions for African Businesses
Zephyr’s approach is designed to be client-centric, emphasizing personalized treasury solutions that align with the strategic needs of startups. Companies can open accounts in their name, which is designed to ensure compliance and peace of mind, while gaining from Zephyr’s experience in investment management and start-up finances. The service targets competitive yields, higher than some typical money market funds, allowing startups to extend their financial runway without compromising on security.
“We understand the unique challenges of venture businesses in Africa,” said Lorcan O Cathain, Managing Director of Zephyr Africa. “Our goal is to ensure that African startups have access to attractive treasury management services, enabling them to focus on scaling their operations while we strive to safeguard and grow their reserves.”
Supporting the Ecosystem
Zephyr’s move is timely and aligns with broader efforts to build a robust financial ecosystem for African startups. The Nairobi office complements Zephyr’s New York headquarters and ready to navigate the complexities of operating across multiple jurisdictions while maintaining strong relationships with African entrepreneurs. The firm’s commitment to the region, combined with its focus on stable value and yield, indicates a significant step forward in supporting the continent’s burgeoning innovation ecosystem.
To learn more or make an inquiry please visit our website at https://zmlp.com/investment-advisory/ or contact Lorcan O Cathain at loc@zmlp.com.
Zephyr acknowledges this endorsement was provided by TechCabal. The entity and its affiliates are not current clients of Zephyr and compensation was provided for this endorsement. There are no conflicts of interest.
