What is the name of your organization?
Fanaka Technologies Limited
What is the name of your solution?
Fanaka Learn, Borrow, Insure
Provide a one-line summary or tagline for your solution.
Providing financially excluded MSMEs, especially women-led and youth-led ones, with climate-smart financial literacy, flexible credit and insurance.
In what city, town, or region is your solution team headquartered?
Lusaka, Zambia
In what country is your solution team headquartered?
Zambia
What type of organization is your solution team?
For-profit, including B-Corp or similar models
Film your elevator pitch.
What specific problem are you solving?
In Lusaka, Micro and Small Enterprises (MSMEs) encounter significant barriers to accessing formal financial services, severely limiting their potential for growth and sustainability. Despite being Zambia's economic hub, Lusaka's MSMEs experience substantial financial exclusion: approximately 60% lack access to formal credit (FinScope, 2021), and fewer than 5% are covered by insurance, leaving them vulnerable to business disruptions from theft, fire, or medical emergencies (FSD Zambia, 2022). The financial literacy rate in Lusaka is around 30%, marginally above the national average, but still insufficient for effective financial management and informed decision-making (S&P Global FinLit Survey, 2015).
Women-led businesses in Lusaka, constituting nearly 45% of MSMEs, face even greater hurdles, accessing only about 17% of available credit despite their growing contribution to the local economy (IFC, 2018). Traditional lending institutions often impose stringent collateral requirements and high interest rates, compelling approximately 80% of Lusaka’s MSMEs to rely on informal financing channels (FinScope, 2021).
Globally, 1.4 billion people remain unbanked, and 2 billion work in informal economies. In Zambia, MSMEs account for 88% of employment (ILO, 2019). Lusaka's MSMEs represent approximately 70% of local employment opportunities (ILO, 2019).
What is your solution?
Fanaka provides financial literacy training, accessible credit and micro-insurance to MSMEs in Zambia via a tech-enabled platform that combines mobile money systems, alternative data and a field-agent float framework. We onboard customers via field agents and assess their eligibility for loans using KYC, cash flow data and repayment behavior. We deduct insurance premiums when making disbursements via mobile money providers. Customers select repayment plans based on business cash flows and receive automated reminders. Since inception 2 years ago, bootstrapping, we have served 1,600 MSMEs, disbursed 3,030 loans worth $201,700, and achieved a 91.2% repayment rate.
Demonstration videos;
Demonstration Video - Data Collection and Loan Management System
1. https://www.loom.com/share/b531f253b203482a9d3b11fccdec27e1?sid=bc35c772-efde-4ae6-be04-1c188ab6f702
USSD and Mobile App Demonstration - Fanaka USSD and Mobile App Demonstration
1. https://drive.google.com/file/d/1UHBPdnPZd_mKVhUQSy1xRpAlTMFC38zM/view?usp=drive_link
2. https://drive.google.com/file/d/1UXFlOQl0Vl71dC35aeeGi38RBM2pKXWC/view?usp=drive_link
Who does your solution serve, and in what ways will the solution impact their lives?
Fanaka’s inclusive design has yielded 86% and 45% of Fanaka clients being women-led and youth-led MSMEs respectively. Women entrepreneurs, in particular, encounter greater challenges accessing credit and managing financial risks. Fanaka directly impacts their lives by equipping MSMEs with skills to manage finances effectively, using alternative data to assess creditworthiness and offering affordable insurance products that protect against risks like theft, fire and health emergencies.
