The recent investments from Visa and Renew Capital underscore a significant trend within the African fintech ecosystem, where small and medium-sized enterprises (SMEs) are increasingly recognized as vital contributors to economic growth and job creation.

By leveraging artificial intelligence, Sevi is transforming stock financing in Kenya, significantly improving its credit assessment processes.

Moniepoint provides a range of services, including digital payments, access to credit, banking solutions, and management tools, all designed to empower SMEs throughout the continent.

In Africa, SMEs are not only experiencing growth but also driving innovation, which has prompted major financial players like Visa and Renew Capital to support their digital and financial transformation.

A notable example of this support is Sevi, a Kenyan fintech company that recently secured a strategic investment from Renew Capital to enhance financing options for the fast-moving consumer goods (FMCG) sector.

Sevi addresses the critical issue of access to working capital for African SMEs through its innovative 'stock now, pay later' model, allowing retailers to purchase inventory on credit with flexible repayment terms.

In addition to these developments, Visa has announced a significant investment in Moniepoint Inc., a leading Nigerian fintech platform that boasts over 1 billion monthly transactions and a total payment volume exceeding $22 billion.

Visa's investment in Moniepoint aims to bridge the financial inclusion gap across Africa by expanding its services and fostering a more inclusive financial system.

This focus on SMEs is particularly crucial given that approximately 83% of employment in Africa is within the informal sector, highlighting the urgent need for enhanced financial inclusion.