In much of Africa, access to credit remains a privilege rather than a right, leaving millions of small businesses and individuals financially stranded. Traditional banks often demand extensive documentation, shutting out those who need financial support the most.
eShandi Technologies, a rapidly growing fintech firm that is leveraging AI and data analytics to break down barriers and bring financial services to the underserved.
We interviewed Chilufya Mutale-Mwila, founder of eShandi, to learn about the company and how they’re driving financial inclusion.
Tech Labari: Can you give an overview of eShandi Technologies and its mission in Africa?
Chilufya Mutale-Mwila: The motivation behind founding eShandi stemmed from a recognition that Zambia’s unbanked population often struggle to access credit and financial services. We realized that many SMEs and individuals have limited access to traditional financial institutions, stifling their growth potential and financial security.
To solve this, we wanted to build a platform that provided not just loans but also a pathway to financial empowerment and self-reliance. eShandi was therefore launched with a mission to democratize financial access, providing digital lending and flexible financial solutions that cater to the needs of everyday Zambians and SMEs.
While we founded eShandi with the aim of providing our clients with reliable access to credit, we quickly found that they needed more than just credit to achieve their financial goals.
They required a broader suite of services that could support various aspects of their financial lives. For this reason, we have since evolved into a wider-ranging fintech firm that has also now expanded into South Africa, Zimbabwe, and Kenya as part of our mission to empower underserved communities across Africa.
Tech Labari: What specific financial inclusion challenges is eShandi aiming to address?
Chilufya Mutale-Mwila: Traditional financial institutions have often failed to serve groups such as women, SMEs, and rural communities in Africa. This is because such groups, while fundamentally reliable and financially savvy, have traditionally lacked the formal documentation which banks require.
eShandi’s technology helps overcome these challenges, bringing more groups into the financial system and empowering them with the tools, capital, and financial knowledge they need to thrive.
TL: How does eShandi use AI to enhance financial inclusion on the continent?
Chilufya Mutale-Mwila: eShandi deploys AI in an innovative and powerful way. While many underserved groups do not have the formal documentation that banks require for traditional KYC processes, we can use AI to analyse large swathes of data about our clients’ financial situation and thereby build an extremely accurate profile of their financial lives, which we can then use to analyze risk effectively.
This allows us to bring millions more underserved groups into the financial system without taking on too much risk.
eShandi, through our cutting-edge technology, is able to reach communities that have been left behind by traditional financial institutions.
TL: What role does data play in improving financial inclusion, and how does eShandi ensure ethical AI use in this space?
Chilufya Mutale-Mwila: As mentioned, data analytics and AI systems are a crucial tool for enhancing financial inclusion. However, data must be used responsibly and ethically.
We work hard to ensure that we are meeting the stringent regulatory requirements that exist in the markets we operate in, as well as international best practice.
Prioritizing partnerships with local institutions and technology providers also helps to strengthen our presence in these markets and ensure that we are well attuned to our clients’ wishes.
“eShandi has adapted by investing in mobile-first solutions to reach areas with limited banking facilities, ensuring compliance with local regulations, and providing financial literacy programs to empower our users”
TL: How have eShandi’s innovations directly impacted the financial well-being of individuals and small businesses in Africa?
Chilufya Mutale-Mwila: eShandi has significantly improved financial inclusion across our operating regions, particularly benefiting women entrepreneurs and small businesses. For example, in Zambia, we worked with a group of women who operate local food businesses.
Thanks to eShandi providing access to quick, cheap, and reliable loans, they were able to purchase inventory, expand their stalls, and even employ more people. This was a very satisfying experience as it demonstrated the practical difference we can make to people’s lives and the prosperity of local communities in Africa, many of which have been left behind by traditional financial institutions.
In total, we have provided over $10 million in funding to SMEs, many of whom were founded and run by women and youth.
TL: How do digital financial solutions contribute to broader improvements in standards of living across different African regions?
Chilufya Mutale-Mwila: Digital financial solutions are crucial to unlocking higher growth in Africa and driving up standards of living. It is only by bringing more underserved groups into the formal financial system that we can help them unlock the capital they need to achieve financial independence or grow their businesses further.
eShandi, through our cutting-edge technology, is able to reach communities that have been left behind by traditional financial institutions. Looking ahead, we aim to increase our outreach to SMEs, underserved communities, and women entrepreneurs, furthering economic empowerment across Africa.
We hope to foster a more inclusive financial landscape that supports sustainable growth and economic resilience for all, and thereby play a role in unleashing a new generation of strong and sustainable economic growth in Africa.
TL: What are some of the biggest barriers to AI-driven financial inclusion in Africa?
Chilufya Mutale-Mwila: The Sub-Saharan African market presents unique challenges, including varying regulatory landscapes, limited digital infrastructure, and the need to boost financial literacy.
eShandi has adapted by investing in mobile-first solutions to reach areas with limited banking facilities, ensuring compliance with local regulations, and providing financial literacy programs to empower our users.
These strategies have been vital to overcoming the obstacles posed by this challenging but fast-growing market and achieving the rapid growth we have experienced since our launch.
TL: What are your thoughts on the future of AI and fintech in Africa over the next five to ten years?
Chilufya Mutale-Mwila: The fintech landscape in Africa is incredibly promising. Africa is expected to become the world’s fastest-growing market for fintech revenue, with the Boston Consulting Group predicting it will reach $65 billion by 2030, growing at an annual rate of 32%.
This growth trajectory is both exciting and motivating for eShandi as we continue our mission to empower communities across Africa. We are keen to expand into additional markets as opportunities arise.
This presents enormous opportunities for eShandi. Our long-term vision is to become a pan-African challenger bank that disrupts the status quo and empowers millions of underserved individuals and companies across the continent.
