Kifiya Recognized for AI Solutions Boosting Africa’s SMEs

Kifiya, an Ethiopian company specializing in AI-driven, alternative data scoring and AgTech solutions, has secured Silver Award for Product Innovation of the Year at the Global SME Finance Awards 2024.

The awards ceremony took place on September 17, 2024, during the Global SME Finance Forum in São Paulo, Brazil, where Kifiya distinguished itself as the first Ethiopian enterprise to receive this honor.

Organized by the International Finance Corporation (IFC) and the SME Finance Forum, the Global SME Finance Awards recognize institutions that excel in delivering innovative financial products and services to small and medium-sized enterprises (SMEs).

The recognition emphasizes Kifiya’s mission to promote a digitally inclusive future by leveraging cutting-edge technology to enhance credit access and market opportunities across Sub-Saharan Africa.

“Receiving this award highlights our unwavering commitment to empowering African micro, small, and medium-sized enterprises (MSMEs), smallholder farmers (SHFs), and low-to-middle-income individuals through our data-driven solutions,” said Munir Duri, CEO and founder of Kifiya.

He credits the Ethiopian government’s progressive reforms under Prime Minister Dr. Abiy Ahmed for fostering an environment conducive to innovation and growth.

Africa’s SME sector, which accounts for approximately 90% of all businesses and provides 60% of total employment, plays a crucial role in the continent’s economic landscape.

Despite this, many SMEs struggle with limited access to finance, a challenge Kifiya seeks to address using their digital platforms that improve market access and cater to the financial needs of these businesses.

In Ethiopia, where nearly half of the adult population remains unbanked, Kifiya’s financial solutions are paving the way for thousands of SMEs to gain access to essential credit and financial services.

The company’s initiatives have not only enhanced financial inclusion but have also contributed significantly to the economic development and stability of local businesses.

Kifiya’s AI-powered credit scoring and rating infrastructure mitigate difficulties faced by MSMEs due to a lack of collateral and credit history, allowing these enterprises to access uncollateralized credit for the first time in Ethiopia.

A notable success of this technology was Kifiya’s partnership with the Cooperative Bank of Oromia, which developed a digital lending product enabling nearly 300,000 MSMEs to secure over $100 million in unsecured credit.

Kifiya’s embedded finance technology supports banks in providing uncollateralized digital credit and Sharia-compliant financial products tailored for MSMEs in various sectors, including agri-food systems, manufacturing, and services.

The platform also facilitates product offerings such as inventory credit and buy now, pay later (BNPL) services, while helping digitize eCommerce processes.

In the agricultural sector, Kifiya’s AgTech platform empowers smallholder farmers by granting access to credit, essential agricultural inputs, markets, and microinsurance to mitigate climate-related risks.

As a result, over 1.5 million smallholder farmers in Ethiopia have benefited from more than $10 million in agricultural inputs.

Kifiya’s innovative approach integrates extensive AI capabilities with market system strategies to tackle persistent development challenges.

“Our goal transcends mere technological advancement,” Duri emphasized.

“We strive for sustainable, inclusive growth by addressing systemic barriers that prevent millions of Africans from attaining financial access and market opportunities. This recognition inspires us to amplify our innovation efforts and expand our solutions across the continent.”

The International Monetary Fund (IMF) forecasts an average GDP growth of 4.0% for Sub-Saharan Africa by 2025. With the continent’s population projected to reach 1.9 billion by 2050, Kifiya is poised to play a vital role in this economic transformation through its technology-driven solutions.

With a steadfast commitment to bridging the $400 billion credit gap impacting 44 million MSMEs and smallholder farmers, Kifiya is set to propel economic growth and financial inclusion throughout Sub-Saharan Africa.