Safaricom, Pezesha launch new loan product for small businesses

STARTUP VENTURE CAPITALJune 18, 2024 at 1:19 AM UTC

TLDR

Safaricom partners with Pezesha to offer new credit product, Mkopo wa Pochi, for small business owners.
Mkopo wa Pochi allows borrowing through M-PESA business accounts, complementing Safaricom's Pochi la Biashara wallet.
Partnership gives Pezesha access to Safaricom's vast customer base of 32.4 million M-PESA users.

Safaricom, Kenya’s largest mobile network, has partnered with digital lender Pezesha to provide credit to small business owners, adding to its existing loan products like M-Shwari and Fuliza.

The new product, Mkopo wa Pochi, will enable small business owners to borrow money directly through their M-Pesa business accounts. It is available through an update to Safaricom’s M-PESA super app rolling out today and will complement Pochi la Biashara, Safaricom’s business wallet for small business owners.

This partnership marks Pezesha’s entry into Kenya’s mobile money market, providing it access to Safaricom’s extensive customer base of over 32.4 million active M-PESA users.

Key Takeaways

Access to capital remains a significant barrier to the growth of many small businesses in Africa—available data shows a $330 billion financing deficit for the small enterprises that make up 90% of businesses on the continent—and it’s a problem several startups and foreign investors are particularly keen to address as it promises attractive returns. Pezesha claims over 20 partner companies have enabled it to extend loans to over 100,000 businesses. The fintech can extend loans of up to $10,000 at single-digit interest rates, and a repayment period of one year.

Safaricom

Pezesha

M-Shwari

Fuliza

M-Pesa

Business Lending

Mkopo wa Pochi

SMEs

Kenya

Fintech

Business Loans

Mobile Money