Elite Fintech Solution, a local startup, has found its footing in neighboring African countries after facing regulatory hurdles in its base of operations.
The company founded three years ago by Alazar Solomon is now attempting to transform SME credit facilitation in the Kenyan, Mauritius and Ugandan markets through the combination of AI and data analytics tools.
The startup’s flagship product, E-bidir, a centralized platform that provides automated digital credit, presented a new service outside the regulatory scope of the National Bank of Ethiopia.
“The current directive on credit references does not allow a business like ours to operate,” Alazar said. Shega.
Even though the central bank appreciated their innovative service, it could not give them the final green light. The emerging digital credit scene has no regulations governing the landscape, and current fintech players like Kifiya and even Telebirr must partner with banks to provide this service.
Alazar remembers having almost no intention of creating just another microcredit service and ignoring the central platform that differentiates E-bidir. However, the platform would find suitors elsewhere.
The startup struggled to establish a subsidiary in Mauritius as the Kenyan market showed significant demand for its product offerings. Access to financing remains a challenge for most sub-Saharan SMEs, with only half managing to access some form of credit.
Alazar identifies two major barriers to financial access for SMEs across the continent: the lack of real-time adaptive financing and fragmented software-as-a-service (SaaS) solutions.
It highlights how business and resource planning (ERP), customer relationship management (CRM), human resource management and overall growth fail to align.
“Businesses are forced to juggle multiple platforms that communicate with each other,” notes Alazar.
He hopes E-bidir will have the ability to address the deep systemic issues that contribute to the lack of funding. The founder plans to provide large unsecured loans to SMEs that can help accelerate economic growth.