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10 Southern African start-ups triumph in fintech challenge
Ten cutting-edge Southern African start-ups have been awarded for their inventive solutions aimed at bridging the financial accessibility gap for underserved communities. The awards were given as part of the Fintech Challenge, a key initiative under the Southern Africa Innovation Bridge Portal supported by the World Bank, designed to crowd-source innovative ways to harness fintech for the benefit of underserved communities.
“After an intense eight-week investment readiness program, which included masterclasses and mentoring, the region’s most innovative fintech companies have showcased solutions to boost financial access for underprivileged communities,” said Marie Francoise Marie-Nellie, World Bank country director for Botswana, Eswatini, Lesotho, Namibia, and South Africa. “Of the 15 participating start-ups, 10 were awarded funding. These businesses are investment-ready and are eager to connect with potential investors.”
The ten Southern African start-ups each received $5 000 (nearly R100 000) at a recent award event, designed to prepare them for investor interactions.
The Fintech Challenge’s primary goal is to provide underserved entrepreneurs with increased access to markets, business networks, and investment opportunities. The initiative is hoped to increase the start-ups’ chances of securing successful capital fundraising.
The Innovation Bridge Portal Entrepreneur Community, an initiative of the department of science and innovation and Council for Scientific and Industrial Research (CSIR), in partnership with the department of small business development, aims to establish a digital platform fostering innovation, collaboration, co-creation, knowledge sharing, and matchmaking amongst ecosystem actors across the five countries.
Speaking at the award event, Awelani Ruhalani, deputy chair of the Intergovernmental Fintech Working Group (IFWG), shared, “To date, over 170 fintechs have received regulatory guidance from the IFWG. There has been such high interest in the sandbox process that we have transitioned from testing specific cohorts to a rolling approach, meaning applications for the sandbox are always open.”
The Switzerland’s State Secretariat for Economic Affairs funded the Fintech Challenge. Marino Cuenat, Deputy Head of Mission for the Embassy of Switzerland, said, “South Africa’s financial services sector is well-regarded, and we are thrilled to be actively promoting fintech in partnership with the World Bank. There are many untapped opportunities to be explored.”
The following start-ups were among the award recipients:
- abela (South Africa): A mobile payments company building an ecosystem to enable people to digitally send, receive, use, and save money, thus creating access to the most basic of financial services.
- Bento Technologies (South Africa): An affordable and holistic employee benefits platform that puts power in the hands of employees, allowing them to choose, manage, and own their benefits.
- Fintr (South Africa): A gamified platform allowing teenagers to learn about finances in a safe environment and be rewarded for their decisions.
- Moya Money (South Africa): A platform designed to simplify financial operations for businesses working with African freelancers.
- Sum1 Investments (South Africa): A short-term investment stokvel allowing low-middle-income consumers to invest in community assets to achieve above-market returns.
- Thumeza (South Africa): Provides access to credit for small-scale transporters active in the supply chain sector using smart contracts.
- Chaperone (Lesotho): Works with corporations to digitise their ecosystems, providing access to financial services for SMEs.
- FundRoof (Namibia): Connects homebuyers, lenders, and developers in one integrated housing platform.
- Ipachi Capital (Botswana): An AI-powered app that generates real-time financial reports for small businesses.
- Prime Capital (Lesotho): A microfinance institution providing access to capital for SMEs in Lesotho.
This initiative marks a significant milestone for the region, as it aims to foster entrepreneurship, innovation, and financial inclusion.
