Moni, a digital platform that leverages social trust and group responsibility to deliver financial services in Africa, has launched a new range of business loans that enables market traders, spare part dealers, textile traders and other small business owners in Africa to take advantage of the power of their communities to access the working capital they need to run and scale their businesses.
, a digital platform that leverages social trust and group responsibility to deliver financial services in Africa, has launched a new range of business loans that enables market traders, spare part dealers, textile traders and other small business owners in Africa to take advantage of the power of their communities to access the working capital they need to run and scale their businesses.
Across Africa and other emerging markets, community groups and associations play an important role in providing various essential services and protecting the interests of the collective. They also facilitate accountability and self-governance that enables communities to function as effectively as possible.
According to the African Development Bank , SMEs account for more than 90 percent of businesses and almost 80 percent of employment in Africa. However, insufficient data and ineffective credit decisioning by traditional financial institutions have led to a $421 billion credit gap, with business owners unable to access the working capital they need to scale.
Moni has built a risk engine that combines financial data and business performance with social intelligence to enable more effective credit decisioning for African SMEs. Starting with Nigeria, small business owners with a good social reputation simply need to join a lending cluster with an invite from an existing Moni user and once eligibility has been confirmed, they can access financing in 5 minutes or less.
The Y Combinator-backed startup launched the pilot of its community-powered loans in August 2021 with 3,000 mobile money agents . In 2022 alone, Moni disbursed more than $22 million in loans to more than 11,000 SMEs, with a 99 percent repayment rate. The company is now building on the success of its community-powered model to deliver game changing financial services to a wider range of African SMEs who have previously been underserved by the traditional financial system.
Nigeria Latest News, Nigeria Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
'How private sector can grow women-owned SMEs'Private organisations have been urged to support growth of small and medium enterprises (SMEs) by connecting women-owned businesses with local and international institutions.Besides, they are advised to support small business owners by providing loans or grants for female entrepreneurs to enable them to provide job opportunities and boost their contributions to the economy.
Read more »
US’ $100m aid for five countries in West AfricaWith the US Vice President Kamala Harris’ visit to three countries; Ghana, Tanzania and Zambia in Africa and carrying an aid package worth of $100m for five West African countries; Benin, Ghana, Guinea, Côte d’Ivoire and Togo, it appears that America is joining the neo-colonial scramble for the African continent (Source: “U. S.’ $100m for 5 W/Africa nations,” The Nation, March 28, 2023.).
Read more »
Firm decries Africa’s poor blockchain adoptionAn indigenous technology firm, UNICCON Group, has decried the poor inclusion and adoption of blockchain technology in Africa.
Read more »
Nigeria to host Intra-Africa trade fairNigeria has been selected to host the fourth edition of the Intra-Africa Trade Fair in 2025, The PUNCH reports.
Read more »
Prof Adegbulugbe Named African Peace Man Of The YearA UK-based magazine, African Peace Magazine has named Professor (Pastor) Anthony Adegbulugbe as the African Peace Man of the Year.
Read more »
BREAKING: South Africa's Khosi wins Big Brother TitansSince the show began, Khosi has proven to be an outstanding housemate, with her endless drama and entertainment.
Read more »