back Back

4 FinTechs helping SMEs bridge the financial gap in Africa

By Gloria Methri

April 13, 2023

  • Africa
  • Branch
  • Credit Offerings
Share

FinTechs in Africa, SMEs in Africa, Credit Offering, Lending, SME Financing, Nigeria, SME LendingSmall and Medium-sized Enterprises or SMEs play a vital role in the economic growth and development of Africa. According to McKinsey, SMEs make up about 98.5% of all businesses in South Africa. 

However, many of these businesses face numerous challenges, including limited access to financing. Fortunately, FinTech companies are stepping up to provide solutions that help SMEs thrive in the continent, marred by the COVID-19 pandemic.

Here are four FinTech companies helping to bridge the financing gap that hindered the growth of SMEs in Africa.

Kenyan FinTech Zanifu provides short-term stock financing of up to $2,000 to MSMEs in Kenya. To date, it has extended 85,000 working capital loans worth over $13 million to 7,000 businesses in Kenya. Moreover, Zanifu has created platforms for manufacturers, distributors, and retailers that ensure seamless ordering, payment, tracking and fulfillment.

Wasoko, formerly Sokowatch, provides a mobile-based platform for SMEs to order and receive supplies, as well as access credit facilities. Thousands of retailers across Kenya, Tanzania, and Rwanda use Wasoko’s mobile ordering and delivery service to receive goods quickly and affordably while also accessing growth financing for the first time.

Nigerian FinTech Lidya provides a flexible credit infrastructure so lenders can acquire customersoriginate loans, and collect repayments with confidence. The company is said to have digitized and analyzed over $50 billion worth of credit application data from one lakh customers, issued 32,500 loans, and powered close to $150 million in loan disbursements.

This Kenyan-based mobile lending platform provides loans to SMEs without collateral, enabling them to access funds to grow their businesses. Branch has raised more than $667 million from investors such as NEA, Founders Fund, and Playground Ventures and is headquartered in Palo Alto, CA, and with offices around the globe.

ALSO READ: Global Lending Vendors & Landscape Report Q1 2023

Previous Article

April 13, 2023

Capital Bank goes live with Finastra to scale up corporate banking

Read More
Next Article

April 13, 2023

Malaysian FinTech Soft Space raises $31.5m in Series B1 funding

Read More








IBSi Daily News Analysis

Web3, Indian market

April 16, 2024

Africa

Explosive growth in Web3: UAE and MENA region poised to lead crypto, DeFi, and Metaverse revolution

Read More

IBSi FinTech Journal

  • Most trusted FinTech journal since 1991
  • Digital monthly issue
  • 60+ pages of research, analysis, interviews, opinions, and rankings
  • Global coverage
Subscribe Now

Other Related News

April 16, 2024

FinbotsAI set to boost credit risk management for Myanmar’s KBZ Bank

Read More

April 16, 2024

India’s Veefin expands Supply Chain Finance & Digital Lending in Africa with Computech Limited

Read More

April 16, 2024

Liberis and Shop Circle partner to launch e-commerce SME funding

Read More

Related Reports

Sales League Table Report 2023
Know More
Global Digital Banking Vendor & Landscape Report Q1 2024
Global Digital Banking Vendor & Landscape Report Q1 2024
Know More
Wealth Management & Private Banking Systems Report Q1 2024
Wealth Management & Private Banking Systems Report Q1 2024
Know More
IBSi Spectrum Report: Supply Chain Finance Platforms Q4 2023
Know More
Treasury & Capital Markets Systems Report Q4 2023
Know More

IBSi Sales League Table

The industry acknowledged barometer of global banking technology vendor performance!
Get your copy now!
close-link
Get your copy now! IBSi Sales League Table 2023