Renew Capital has selected 15 companies from over 500 applicants across 48 African countries.
These companies will advance through its inaugural Renew Venture Lab: EmFi Series, focusing on embedded finance. This selection points to a significant shift across Africa, where promising embedded finance opportunities are emerging from tech companies serving small and medium-sized enterprises (SMEs), rather than traditional fintechs.
African SMEs are crucial for job creation, yet they face an estimated GHS 4.2 billion annual credit gap (USD 330 billion). Africa is rapidly becoming a global hub for technology innovation and already boasts the world’s largest mobile money market. The increased smartphone adoption, projected to rise from 54% in 2024 to 81% by 2030 in sub-Saharan Africa, along with falling data costs, creates new avenues. These trends allow for embedding financial products directly into mobile applications, reaching private sectors with limited access to capital and fostering growth.
Matthew Davis, Co-CEO of Renew Capital, articulated the firm's strategic focus. He stated, “The next generation of Africa's small business banks won't be banks. They'll be startups that already understand how SMEs operate, have their data and have earned their trust.” Davis added that the 15 selected companies are building from this advantage, which is why Renew Capital is paying close attention to their development.
This initiative could unlock significant economic growth and job creation across the continent. Decision-makers and investors will watch closely to see how these tech-enabled companies disrupt traditional financial services. The success of these embedded finance models could inspire further investment and innovation in Africa's burgeoning digital economy. The program also suggests a new blueprint for addressing financial inclusion challenges for SMEs.
All 500+ initial applicants participated in exclusive expert sessions. These sessions featured founders from fast-growing African companies and advice from leading embedded finance and Web3 firms. From this group, 47 companies competed in a pitch competition. Each received a startup package valued at over GHS 3.1 million (USD 250,000).
The final 15 companies represent diverse African nations. These include Ethiopia, Ghana, Kenya, Morocco, Nigeria, Senegal, South Africa, Togo, Uganda, and Zambia. This broad representation highlights the widespread potential for embedded finance solutions across the continent. The program aims to support solutions that use customer data to underwrite financial products. This will help reach millions of SMEs currently unserved by traditional banks.