Elite Fintech Solution, a local startup, has found a home in neighboring African countries after facing regulatory roadblocks in its base of operations.
The three-year-old firm, founded by Alazar Solomon, is now bidding to transform SME credit facilitation in Kenyan, Mauritian, and Ugandan markets through the combination of AI tools and data analytics.
The startup’s flagship product, E-bidir, a centralized platform that provides automated digital credit, presented a novel service outside the regulatory scope of the National Bank of Ethiopia.
“The current credit reference directive does not allow for a company like ours to operate,” Alazar told Shega.
While the central bank appreciated their innovative service, it could not give them the final green light. The emerging digital credit scene does not have a regulation governing the landscape, and current fintech players like Kifiya and even the likes of telebirr have to partner with banks to provide the service.
Alazar recalls having almost no intention of creating just another micro-lending service and ignoring the central platform that makes E-bidir different. Nonetheless, the platform would find suitors elsewhere.
The startup had an easy time establishing a subsidiary in Mauritius while the Kenyan market exhibited significant demand for its product offerings. Access to finance remains a challenge for most Sub-Saharan SMEs, with just half managing to access some form of credit.
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