10 Digital Startups Helping African Entrepreneurs Get Micro Loans

Written by Peter Pedroncelli
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The need for micro loans across industries in Africa is served by innovative digital startups that are assisting African entrepreneurs with their capital requirements.

From business loans that rely on an innovative credit scoring algorithm to another startup that offer micro loans based on a person’s social media reputation, these startups are coming up with interesting new ways to provide loans to entrepreneurs in Africa.

These startups are coming up with interesting new ways to provide loans to entrepreneurs in Africa. One startup provides small business loans based on an innovative credit scoring algorithm, while another offers micro loans based on a person’s social media reputation.

One of the companies in this list recently received a $20 million investment injection, demonstrating the value of this industry and the potential that it has in the continent.

Here are 10 digital startups that are helping African entrepreneurs to get micro loans.


Lidya is a Nigerian fintech platform that offers small business loans through their platform which relies on an innovative credit scoring algorithms. Since its launch, Lidya says that it has provided over 1,500 loans to businesses in retail, farming, tech, hospitality, and logistics industries. The company recently raised $6.9 million in Series A funding that will be used for expansion, according to Ventureburn.


Pezesha is a Kenyan peer-to-peer micro-lending marketplace that provides low-income borrowers in Africa with a way to be part of the formal financial system. The platform uses credit and data analytics to connect lenders with high-quality underserved low-income borrowers.


Ugandan fintech startup Numida was declared winner of the Kampala leg of the Seedstars World competition in 2017. The startup has seen excellent monthly growth since March last year, and has disbursed hundreds of small business loans to clients, boasting a 99 percent repayment rate, according to DisruptAfrica.

Social Lender

Nigerian startup Social Lender is the leading credit lending solution based on social reputation on mobile, online, and social media platforms. Basically, your social media is used to determine whether you qualify for a micro loan, enabling people to access money through their online profile and history.

Patasente Inc

Ugandan startup Patasente Inc provides purchase order financing for small and medium enterprises in the country, satisfying a need within the business community in Uganda which could enable further growth for the businesses that benefit.

Thanks to fintech startups micro loans are now far more accessible to African entrepreneurs. Photo by CreditRepairExpert
Thanks to fintech startups, micro loans are now far more accessible to African entrepreneurs. Photo by CreditRepairExpert


Branch is an online micro-lending startup in Kenya, which received investment of $20 million in March this year. Trinity Ventures led the equity portion of the funding round, with participation from International Finance Corporation, Andreessen Horowitz and CreditEase Fintech Investment Fund, according to TechCrunch.

Klientele Ltd

Klientele is a Kenyan startup that provides micro loans for businesses or individuals via mobile. The fintech firm aims to deliver a mobile lending process that is easy, safe and quick for their users, so that entrepreneurs can easily get a small loan when they need to.


Azima is an app-base micro-lending platform that makes small loans available to users within Kenya. The startup provides a convenient way for people to apply for and receive short-term loans, before repaying the instalments via mobile money channels.


Ovamba is an U.S.-based funding and logistics services provider for small and medium enterprises in Africa and the Middle East. The company offers small loans for businesses and entrepreneurs, and has been especially prolific in Cameroon, which is where the company set up its first operations in the continent. The firm won the Best Fintech In Africa prize in the Lending And Finance category at the 2017 African Fintech Awards, according to CFO.


A startup with roots in both Kenya and Ghana, Tulaa is a mobile-based marketplace that supports and assists smallholder farmers in Africa through access to affordable finance, quality agricultural inputs, and markets. Allowing farmers access to loans gives them better opportunities to succeed.