Kenyan digital lending platform, Pezesha, will improve its credit scoring technology after the sub-board of the Development and Finance Corporation approved a $500,000 technical assistance grant in the second quarter of the 2024 fiscal year.
- The DFC approved a total of 22 projects globally that will receive $697 million, ranging from infrastructure, Agriculture, and enterprise development.
- The technical assistance grant will enable Pezesha to tap into data science and sophisticated machine-learning technologies that will streamline its lending capabilities.
- Pezesha Africa Limited was founded in 2016 to provide short-term and affordable loans to small and medium-sized enterprises.
“As we look ahead to 2024, we aim to impact one million SMEs – a challenging yet achievable goal with our dedicated team, regulatory approvals, strategic partnerships, and the apt investor support,” said Hilda Moraa, founder and CEO of Pezesha during the launch.
Pezesha 2.0 was launched in December last year to capture a larger demographic of micro-enterprises. Using the platform, customers could apply for loans and inventories at a more rapid pace. The credit score algorithm tracks a customer’s credit history, evaluating whether they qualify for additional loans. It also helps customers to utilize the funds responsibly and repay promptly.
Since its establishment, Pezesha has supported more than 50,000 small business owners with instant capital, which they may have never received from banks and other micro-finance institutions.
MSMEs account for 34% of Kenya’s Gross Domestic Product (GDP) and create jobs for 15 million people, according to 2015 and 2016 reports from the Kenya National Bureau of Statistics (KNBS). By providing credit opportunities, Pezesha and other micro-loan apps are promoting financial inclusion and fostering expansion.
Small businesses in the continent are due to receive a boost from the DFC’s quarterly kitty. About $65 million will be loaned to SFC Finance Limited, intensifying credit opportunities for female entrepreneurs in Sub-Saharan Africa. The development body will also allocate $81 million to VACAP Hospitality S.A., enabling the construction of two hotels in Dakar, Senegal – enterprises that would spur job creation and economic growth.
See Also:
