About Microfinance sector in Southern Africa
The Microfinance sector in Southern Africa comprises 38 companies, including 8 funded companies having collectively raised $37.6M in venture capital money and private equity. Out of these, 4 are Series A+ funded.
Microfinance sector in Southern Africa has seen 1 IPO.
This sector includes microfinance is the provision of access to capital and financial services to low-income households and micro & small enterprises underserved by traditional financial institutions due to lack of collateral, credit information and profitability of serving such a customer group.
Microfinance sector is also known as Micro Credit, Micro-Finance, Micro-lending or Microcredit.
All companies that primarily offer microfinance products including independent NBFIs, subsidiaries of banks, and cooperative societies. All internet-first lenders including marketplaces are also included. Other Financial Institutions that have a different focus compared to NBFI microfinance companies including banks, consumer and SME loan companies, unorganised money lenders, private debt funds, large corporate lenders, asset finance companies etc. are excluded
Top Microfinance Companies in Southern Africa
There are 38 Microfinance startups in Southern Africa which include Letshego, Development Bank of Namibia, Zimnat, Betternow Finance Company, Micro Finance Zambia. Out of these, 8 startups are funded, with 4 having secured Series A+ funding.
Over the past 10 years, an average of 1 new company has been launched annually.
Here is the list of top Microfinance startups in Southern Africa
1. Letshego
Provider of microfinance services. It offers a range of financial products and services, including lending, savings, payments, and insurance services.
Key facts about Letshego
- Founded Year: 1998
- Location: Gaborone (Botswana)
- Stage: Series A
- Investors: Development Partners International, Zephyr Management and 2 Others
- Latest Funding Round: Conventional Debt, Dec 11, 2018, $*****
- Tracxn Score: 50/100 What is this?
- Competitors Rank: 2 of 2 Competitors
Provider of financial solutions and support across various sectors in Namibia. It offers financing for agri-enterprises, climate adaptation, contractors, energy, electricity, land, housing, local authorities, mining, quarrying, manufacturing, transport, logistics, tourism, and hospitality. It provides SME finance, letters of intent, and tender-based finance, along with support for young artisans, entrepreneurs, and professionals. Support includes business rescue programs, mentoring, coaching, and portfolio management. It focuses on corporate social investment and development impact, managing environmental and social risks.
Key facts about Development Bank of Namibia
- Founded Year: 2004
- Location: Windhoek (Namibia)
- Stage: Unfunded
- Tracxn Score: 36/100 What is this?
- Competitors Rank: 1 of 2 Competitors
3. Zimnat
Key facts about Zimnat
- Founded Year: 1946
- Location: Harare (Zimbabwe)
- Stage: Funding Raised
- Investors: Nurture and Masawara
- Tracxn Score: 32/100 What is this?
- Competitors Rank: 1 of 10 Competitors
Key facts about Betternow Finance Company
- Founded Year: 2012
- Location: Lusaka (Zambia)
- Stage: Series A
- Total Funding till date: $1.09K
- Investors: Kukula Capital and Impact Fund Denmark
- Latest Funding Round: Conventional Debt, 2016, $*****
- Tracxn Score: 30/100 What is this?
- Competitors Rank: 1 of 8 Competitors
Key facts about Micro Finance Zambia
- Founded Year: 2018
- Location: Lusaka (Zambia)
- Stage: Unfunded
- Tracxn Score: 29/100 What is this?
- Competitors Rank: 2 of 8 Competitors
Companies founded year-on-year in the Microfinance sector in Southern Africa
3 Microfinance startups in Southern Africa were founded in 2018 - this is the most number of startups founded in any year in the last 10 years.
- Total Number of Companies
Year | No. of companies |
|---|---|
2026 | - |
2025 | - |
2024 | - |
2023 | 1 |
2022 | 1 |
2021 | - |
2020 | 1 |
2019 | 2 |
2018 | 3 |
2017 | 2 |
Stage-wise distribution of Microfinance sector companies in Southern Africa
Out of the total 38 Microfinance companies in Southern Africa, 8 have secured funding. Among them, 4 have reached Series A or higher, and 2 to Series B or beyond.
Founded - 38
Funded - 8
Series A+ - 4
Series B+ - 2
Series C+ - 2
Company Stage | No. of companies |
|---|---|
Founded | 38 |
Funded | 8 |
Series A+ | 4 |
Series B+ | 2 |
Series C+ | 2 |
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Funding Trends in the Microfinance sector in Southern Africa
Recent Funding Rounds in Microfinance in Southern Africa
In the year 2015, till November 2015, Microfinance companies in Southern Africa have raised $2.08M in equity funding across 1 round.
Here are some recent, important funding rounds in Microfinance companies in Southern Africa:
Company | Round Raised | Amount Raised | Funding Date | Investors |
|---|---|---|---|---|
PE | 1232 | Nov 17, 2015 | ||
Series A | 2859 | Dec 17, 2014 | ||
Series A | 3793 | May 2010 |
Top Investors in Microfinance in Southern Africa
FMO is the top investor in Microfinance companies in Southern Africa based on number of companies invested.
Here are some top investors in Microfinance companies in Southern Africa:
Investor | Location | Top Portfolio Companies |
|---|---|---|
The Hague (Netherlands) | ||
London (United Kingdom) | - | |
Amsterdam (Netherlands) | - | |
Cologne (Germany) | - | |
Singapore (Singapore) | - |
IPOs in Microfinance in Southern Africa
In the year 2004, till February 2004, 1 IPO happened in Microfinance sector in Southern Africa.
Here are some recent, important IPOs in Microfinance sector in Southern Africa:
Company | IPO Date | Exchange Symbol |
|---|---|---|
Feb 18, 2004 | Johannesburg Stock Exchange (JSE) |
Top News in Microfinance in Southern Africa
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Platform To Offer Between Ksh 1,000 and Ksh 100,000 In Loans LaunchedSoko Directory•May 04, 2023•Letshego, Creditinfo
