eMaisha Pay

A whopping 80% of Africans are dependent on agriculture, which generates about 30% of the continent's GDP. More than 80% of farmers who work in agriculture are smallholders. This significant smallholder sector, however, depends on a sector of micro and small agribusinesses, to operate effectively and to expand. These link smallholder farmers with larger markets that buy their produce and supply farmers with inputs like pesticides, seeds, fertilizers, etc. as well as the equipment they need to meet market demand. The development of inclusive and sustainable food systems depends on these small and micro-scale agricultural enterprises. These businesses are in charge of selling inputs, collecting and distributing crops, processing food, and selling food products in stores. They act as the backbone of the sector and are essential to every link in the value chain. The small-scale farming sector in Africa cannot thrive without micro and small agribusinesses. However, these micro and small agribusinesses do not have access to tailored financial services they need to carry out their functions, capitalize on their own investments, and promote economic growth. Most of them are not catered for by either commercial banks or microfinance institutions.  

Complex onboarding processes that are mainly manual, stringent collateral requirements, and reliance on cash-based transactions that do not leave a financial history, are some of the challenges these agribusinesses face in accessing financial services from traditional financial institutions. Financial institutions also face high customer acquisition and due diligence, insufficient data availability to make accurate credit assessments, and high costs of products distribution. Therefore, these institutions are not providing the financial products that micro and small agribusinesses need, with requirements that they can meet, and conditions that are acceptable. This results in a significant financing gap, with an estimated 83% of agribusiness MSMEs financing needs go unmet in sub- Saharan Africa, an equivalent of $81 billion annually, according to Dalberg and KfW, 2018.  

This financing gap is already having a cascading effect on the entire agriculture value chain, including the smallholder farmers who depend on these businesses for inputs, markets, and produce distribution. The lack of access to affordable finance is hindering the growth and expansion of these businesses, leading to decreased productivity, limited access to markets, and reduced income for both the businesses and the smallholder farmers they serve. This is having a detrimental effect on the entire agriculture value chain, from the primary producers to the end consumers.  

The extraordinary growth in smartphone ownership, internet penetration, and 3G connectivity has created a digital infrastructure across Africa, that is making it possible for us to digitize different types of savings, payments and credit products and offer them to micro and small agribusinesses in a faster, more convenient, and cheaper way than traditional financial institutions.  

Through our simple mobile application, and prepaid card, we are making it significantly quicker, easier and cheaper for micro and small agribusinesses to save, transact, and access capital. Leveraging the transactions history, alternative data, advanced psychometric analytics and machine learning algorithms, we credit score micro and small agribusinesses, empowering them with access to convenient, flexible and affordable non-collateral capital to grow their businesses, and build resilience.  

Using cutting edge technologies like Natural Language Processing, Optical Character Recognition, and Artificial Intelligence, we automate the customer onboarding process, enabling agribusinesses to create business profiles, and upload business documents remotely, with instant approval, for a completely touchless experience.  

Our prepaid card solution enables micro and small agribusinesses to transact and access their funds seamlessly from thousands of ATMs and merchants. It also facilitates cashless transactions and digital payments, leaving a transaction data trail that is leveraged to access non-collateral capital.  

We also offer business capacity support, including access to training and advisory services, to enhance the resilience of agribusiness MSMEs in the face of climate change and other market shocks. Our platform provides a one-stop-shop for financial services, saving agribusinesses the time and resources they would have otherwise spent moving from one financial institution to another. Our platform addresses geographic access barriers of traditional financial products, increasing the potential reach to millions of unserved customers. Our solution offers a convenient, affordable, and secure alternative to the traditional banking sector for micro and small agribusinesses, ultimately driving sustainable economic growth in Africa.

Our target market are micro and small Agribusinesses, that include agro-input retailers, commercial farmers, food processors, food distributors, food retailers, grocery stores, restaurants, and agriculture service providers, with monthly revenue between $500 - $5,000, employing maximum 10 people, and annual financing needs of average $10,000. They transact mainly in cash, and save mainly with Savings and Credit Corporative Societies (SACCOs). 71% are micro enterprises, and 18% are small enterprises. These face difficulties accessing financing from traditional financial institutions due to a lack of collateral or formal credit history. This limits their ability to expand their businesses and create employment opportunities in their communities.  

eMaisha Pay's solution is intended to impact these micro and small agribusinesses by providing them with a more accessible and affordable way to save, transact, and access non-collateral capital. By leveraging technology and alternative credit scoring methods, eMaisha Pay enables these businesses to access the financial services they need to grow their businesses, improve their financial management practices, and build resilience against external shocks. This, in turn, can help them create more jobs and contribute to the overall economic development of Uganda.

Our team at eMaisha Pay is well-positioned to deliver our solution because we have a deep understanding of the agribusiness sector and the digital economy in Uganda and Sub-Saharan Africa. As co-founders of Kampala Grilled Rabbit and Cabral Tech, we have experience working with millions of smallholder farmers and agribusinesses, as well as developing and implementing digital solutions for these communities.

Our team lead, Sserubiri Joseph Uhuru, has run agribusinesses before, and co-founded Cabral Tech, a technology startup that deployed innovative solutions for smallholder farmers and agribusinesses, improving market linkages, and has experienced firsthand the challenges they face in accessing financial services. This has inspired our team to develop a solution that is tailored to the needs of micro and small agribusinesses.

We have engaged extensively with micro and small agribusinesses through surveys and focus groups to understand their needs and challenges. We are working closely with agribusiness associations and cooperatives to ensure that our solution is tailored to the specific needs of these communities.

Our solution is guided by the communities' input, ideas, and agendas through our user-centered design approach. We have incorporated feedback from our target communities into the development of our solution and continue to engage with them throughout the implementation process to ensure that our solution is meeting their needs.

Our strategic investor and partner, is the largest distributor of agrochemicals and agriculture inputs in Uganda, with presence in five African markets, with over 50 years of experience serving millions of smallholder farmers, and small agribusinesses. Leveraging on their experience, strategic guidance, and rich data, we have tailored our solution to the unique financial and business needs of micro and small agribusinesses.

We have onboarded 1,945 agribusinesses, serving a diverse group of entrepreneurs, including 45.7% female entrepreneurs. We have been able to retain 84.4% of our customers, and the customer acquisition cost is $1.1. However, we plan to scale up our operations by leveraging partnerships with large distributors and agribusiness associations and cooperatives to onboard an additional 10,000 agribusinesses within the next 6 months, with the goal of achieving a customer retention rate of 90%.

We are applying to Solve to access mentorship, a network of experienced entrepreneurs, and potential partners and investors who share our vision of financial inclusion and sustainable development of Africa, to accelerate our growth and scale. As a fintech focused on improving financial inclusion for micro and small agribusinesses in Africa, we recognize the importance of support from like-minded organizations to achieve our mission. Our solution aligns well with Solve's mission of solving world challenges through innovative solutions.

As a young fintech startup, we face a number of challenges that we hope Solve can help us overcome. Financially, we require additional funding to expand and scale our impact. Technically, we are continuously working to improve our platform to better serve the needs of our users and to stay ahead of the rapidly evolving fintech landscape. Legally, we face regulatory hurdles that vary from country to country as we seek to scale our services beyond Uganda. Culturally, we are working to overcome the challenge of low financial literacy among our target users and to build trust in digital financial services. Finally, we face market barriers in terms of competition from traditional financial institutions and other fintech startups. We believe that Solve's mentorship, network of experienced entrepreneurs, and potential partners and investors can help us overcome these barriers and accelerate our growth and impact. By working with Solve, we hope to gain access to expert guidance on financial, technical, legal, and cultural issues, as well as new markets and potential partners who share our vision. Ultimately, we hope to empower millions of micro and small agribusinesses in Africa to access affordable and flexible financial services, and to achieve their full potential.

Our solution leverages cutting-edge technology to provide fast, flexible and affordable financial services to micro and small agribusinesses.  Our platform uses Natural Language Processing, Optical Character Recognition and Artificial Intelligence to verify ID documents, business documents, and validate business information, automating customer onboarding and approval offering a completely touchless and paperless experience. With our secure and easy-to-use platform for savings and digital payments, we empower our customers to access financial services that were previously out of reach.

We leverage transactions history, alternative data, advanced psychometric analytics and machine learning algorithms to credit score micro and small agribusinesses, empowering them with access to flexible non-collateral capital to grow their businesses. Our prepaid card is a unique offering that enables agribusinesses to transact and access their funds globally, providing the flexibility they need to grow. Our credit underwriting capability, powered by pre-defined Machine Learning algorithms, optimizes the entire loan approval process and reduces disbursement time.

In addition, our platform addresses geographic access barriers of traditional financial products, increasing the potential reach to millions of unserved customers. Our platform is built using low code development tools that allow us to quickly iterate and adapt to changing customer needs.

We have developed a highly scalable and modular architecture, which enables us to customize our platform to meet the specific needs of each market. This approach allows us to easily replicate and adapt our solution to new markets, while still maintaining high standards of quality and reliability of our platform.

By leveraging technology to automate and streamline the onboarding and approval process, we can provide financial services that are faster, more affordable, and more accessible than traditional banking services. This will not only benefit the millions of small agribusinesses that are currently underserved, but will also create new market opportunities for financial institutions that are looking to tap into this rapidly growing sector. In addition, our credit underwriting capabilities, powered by machine learning algorithms, allow us to provide flexible non-collateral capital to micro and small agribusinesses. This enables these businesses to access the capital they need to grow and expand, which in turn can help to drive economic growth and create jobs in rural areas.

Our prepaid card also provides a unique offering that enables agribusinesses to transact and access their funds globally, providing the flexibility they need to grow. This has the potential to open up new opportunities for trade and commerce, and facilitating cross-border transactions that were previously out of reach for many small agribusinesses.

eMaisha Pay's innovative approach to financial inclusion has the potential to create a more inclusive and sustainable economy, where even the smallest agribusinesses have access to the financial services they need to thrive. This has the potential to catalyze broader positive impacts from others in this space, as more organizations recognize the importance of financial inclusion as a key driver of economic growth and development.

Our impact goals for the next year are;

1. To onboard 30,000 micro and small agribusinesses onto our platform, with a particular focus on female entrepreneurs,
2. Achieve a customer retention rate of 90%, and customer satisfaction score of 95%.
3. To process over 500,000 transactions through the prepaid card, and process loans worth $2.5 million for these agribusinesses.
4. To deepen our partnerships with large distributors and agribusiness associations to reach more agribusinesses in underserved regions.
5. To launch bill payments for agribusinesses

Our impact goals for the next five years are;

1. To onboard one million micro and small agribusinesses onto our platform.
2. To process over 10 million transactions, process loans worth over $3 billion and offer savings services to these agribusinesses.
3. To scale to 5 African countries, and have achieved a customer retention rate of over 95%.
4. To launch B2P payments, enabling agribusinesses pay smallholder farmers for produce supplies

To achieve these impact goals, we plan to leverage our partnerships with large distributors, agribusiness associations and cooperatives to access a larger network of agribusinesses. We will continue to use innovative technologies to offer affordable and flexible financial services to micro and small agribusinesses, and we will refine our machine learning models to improve credit scoring and loan approvals. We will also continue to collaborate with our customers to better understand their needs and tailor our solutions to meet their evolving needs.

We are measuring our progress toward our impact goals using a combination of qualitative and quantitative indicators. Some of the key indicators we are using include:

1. Number of agribusinesses onboarded: This indicator measures the reach of our solution in terms of the number of agribusinesses that have signed up and started using the platform. By tracking the growth of this number over time, we can assess the success of our marketing and outreach efforts, and our ability to attract and retain customers.

2. Customer retention rate: This indicator measures the loyalty of our customers over time. A high customer retention rate would indicate that customers are satisfied with our platform and are finding it useful in managing their financial needs. This would also suggest that we are delivering on our promise of affordable and flexible financial services for micro and small agribusinesses.

3. Transaction volume: This indicator measures the level of activity on our platform in terms of the number and value of transactions processed. By tracking this over time, we can assess the growth of our customer base, as well as the adoption and usage of the platform by existing customers.

4. Loan disbursement and repayment rate: These indicators measure the success of eMaisha Pay in providing access to flexible non-collateral capital to agribusinesses, and the ability of these businesses to repay their loans. By monitoring the loan disbursement and repayment rates, we can assess the demand for credit services among our customers, and our ability to manage credit risk.

5. Percentage of female agribusiness owners onboarded: This indicator measures the inclusivity of our solution in terms of gender balance. By tracking the percentage of female agribusiness owners onboarded, we can assess our success in reaching out to and serving a historically underserved group in the agriculture sector.

These indicators provide us with a comprehensive picture of our progress towards our impact goals of championing the financial inclusion of micro and small agribusinesses. By tracking and analyzing these indicators, we can identify areas of success and areas for improvement, and adjust our strategies accordingly to achieve greater impact.

By empowering micro and small agribusinesses with access to flexible, convenient and affordable finance, they are better able to grow their businesses and increase their productivity. This increased productivity, in turn, positively impacts the livelihoods of the millions of smallholder farmers that they support by providing them with a more reliable market for their products, and enabling them to access high-quality inputs such as improved seeds, fertilizers, and other agrochemicals.

As the agribusinesses continue to grow, they are able to create more jobs, generate more income, and contribute to the overall growth of the rural economy. This increased economic activity can help to reduce poverty, increase access to education and healthcare, and improve overall quality of life for smallholder farmers and their families.

Furthermore, by improving access to affordable and nutritious food, the solution can contribute to achieving sustainable and inclusive food systems and food security. The ability of micro and small agribusinesses to access finance and grow their businesses also enables them to adopt more sustainable and climate-resilient practices, thereby contributing to more sustainable agricultural practices and mitigating the effects of climate change.

Therefore, by empowering micro and small agribusinesses with access to finance, our solution aims to positively impact the livelihoods of thousands of smallholder farmers, drive the growth of the rural economy, and ensure sustainable and inclusive food systems and food security

We support our theory of change with evidence from research, surveys, and evaluations that show the positive impact of financial inclusion on economic development and poverty reduction. Our ongoing monitoring and evaluation activities, which track key performance indicators such as customer retention rate, customer satisfaction score, loan disbursement, and transaction volume, will enable us to continuously refine our approach and demonstrate the impact of our solution.

Our platform leverages multiple cutting-edge technologies to deliver fast, affordable and flexible financial services to micro and small agribusinesses in Africa.

Natural Language Processing (NLP) and Optical Character Recognition (OCR) technologies enable us to automate the customer onboarding and approval processes by extracting and validating data from ID and business documents, creating a seamless, and paperless customer onboarding experience for our customers.

We use Artificial Intelligence (AI) to analyze and interpret the data we collect from our customers' transactions and other sources, which helps us to understand their financial behavior and creditworthiness. Our machine learning algorithms leverage data from various sources to create credit scores, enabling us to provide non-collateral capital to agribusinesses that were previously deemed too risky by traditional financial institutions.

Our platform uses blockchain technology to facilitate secure and transparent transactions between our customers and partners, increasing trust and reducing the risk of fraud.

We offer a simple mobile app that enables our customers to easily access their accounts, make transactions, and view their transaction history in real-time. Our platform's user interface is designed to be simple and easy-to-use, making it accessible to customers with varying levels of digital literacy. We use low-code development tools to create and customize our platform to meet the specific needs of our customers and partners, enabling us to quickly iterate and adapt our solution to changing market needs.

At eMaisha Pay, we believe that diversity, equity, and inclusivity are crucial to our mission of promoting financial inclusion and sustainable development in Africa. We recognize that our team, customers, and stakeholders come from diverse backgrounds, and we are committed to creating an environment that is welcoming, respectful, and supportive of all.

To achieve this goal, we have taken several steps to promote diversity, equity, and inclusivity in our work. First, we have a diverse leadership team that includes individuals from different ethnic and socio-economic backgrounds, as well as gender diversity. We believe that this diversity at the top levels of our company helps us to better understand the needs and perspectives of our customers and stakeholders.

Second, we have set goals for increasing diversity and inclusivity within our team. We aim to recruit and retain talent from diverse backgrounds and to create a workplace culture that is inclusive and respectful of all individuals. We also strive to create opportunities for professional development and advancement for all members of our team.

Finally, we are committed to incorporating a diversity, equity, and inclusivity lens into our product development and operations. We aim to ensure that our financial products and services are accessible and equitable for all, regardless of their background or identity. We also aim to partner with organizations that share our commitment to diversity, equity, and inclusivity.

We believe that promoting diversity, equity, and inclusivity is not only the right thing to do, but also essential to achieving our mission of promoting financial inclusion of micro and small agribusinesses across Africa

Our social business model reflects our commitment to creating sustainable social impact and financial sustainability through innovative technology, strategic partnerships, and customer-centric services.
 

We provide value to our customers, micro and small agribusinesses, by offering them affordable and flexible financial services that were previously out of reach. Our services include a digital platform for savings and digital payments, credit scoring and loan approvals using machine learning algorithms, and a prepaid card for digital transactions. By providing these services, we enable our customers to grow their businesses, create jobs, increase productivity, and ultimately alleviate poverty.

To achieve financial sustainability, we operate on a transaction-based revenue model, where we earn a fee on each transaction made through the platform, when using the mobile app and the prepaid card. We also generate revenue through service fees charged on credit suppliers, and card issuance fees. Our cost structure is optimized through the use of innovative technologies, such as low code development tools, natural language processing, and machine learning algorithms, which allow us to operate with lean operations. Our customer acquisition cost is low at $1.1, allowing us to scale at low marketing and sales budget.

We leverage strategic partnerships with large distributors, agribusiness associations, and cooperatives to reach more agribusinesses in underserved regions. Our distribution channels include digital channels such as our mobile app, website, and social media as well as physical channels such as field agents, and channel partners like distributors and associations.

Our key resources include our technology infrastructure, partnerships, and team of experienced professionals with expertise in financial services, agribusiness, and technology. We invest in building strong relationships with our customers through ongoing engagement and support to ensure their long-term success.

We have developed a transaction-based revenue model. This means that we earn a fee on each transaction made through the eMaisha Pay platform, whether it is through the mobile app or prepaid card. We also generate revenue through service fees charged on credit suppliers and card issuance fees.

In addition to our revenue model, we plan to raise investment from investors who share our vision of financial inclusion and sustainable development of Africa. This will help us to scale our solution across Africa, reach more micro and small agribusinesses, and create more value for our customers, partners, and investors.

Our long-term goal is to achieve financial sustainability through a combination of these revenue streams, ensuring that our impact on the lives of micro and small agribusinesses and smallholder farmers remains sustainable over the long-term.

In the past 14 months, we have onboarded 1,945 agribusinesses onto our platform and generated $79,166 in revenue through our transaction-based revenue model. In addition, we raised $230,000 in equity investment from investors who share our vision of financial inclusion, which is enabling us scale our solution across Uganda.

Looking ahead, we have ambitious goals for the next 12 months. We project to onboard 20,000 agribusinesses onto our platform and generate revenue of $270,000. We will also continue to explore additional revenue streams and optimize our cost structure through the use of innovative technologies, which allow us to operate with lean operations.

Our plan for financial sustainability is designed to create value for our customers, partners, and investors by providing affordable and flexible financial services to micro and small agribusinesses, driving the growth of the rural economy, and ensuring sustainable and inclusive food systems and food security.