DFC Approves $500,000 Technical Assistance Grant to Pezesha for Credit Scoring

A well-known Kenyan digital lending platform dubbed Pezesha that caters to small and medium-sized businesses aims to improve its credit scoring with the help of a $500,000 technical assistance grant issued by the Development and Finance Corporation. The grant, which Pezesha is expected to approve during the second quarter of the fiscal year 2024, is a significant turning point that would allow the lending platform to increase its lending with data science and the use of cutting-edge machine learning.

Quick Summary:

  • Pezesha has received a $500,000 grant from the DFC to improve its credit scoring technology.
  • This funding will help them use data science and advanced machine learning techniques to make their lending processes more efficient.
  • Pezeshas goal is to assist one million SMEs by 2024 through partnerships, regulatory approvals and investor backing. 

Pezesha Africa Limited was founded in 2016 and has been leading the way, in offering convenient and budget loans to medium enterprises (SMEs) in Kenya. With the support of the DFCs aid grant Pezesha plans to improve its lending procedures by utilizing technologies to fine tune its credit assessment methods. This endeavor is in line, with the platforms objective of supporting a million SMEs by 2024.

Technological Advancements:

  • The integration of data science and machine-learning technologies will enable Pezesha to assess creditworthiness more accurately and efficiently.
  • Pezesha 2.0, launched in December last year, signifies a significant upgrade aimed at catering to a broader spectrum of micro-enterprises while ensuring faster loan processing and responsible fund utilization.

Economic Impact:

  • SMEs play a pivotal role in Kenya’s economy, contributing 34% to the GDP and creating employment opportunities for millions of people.
  • By providing instant capital to SMEs, Pezesha contributes to financial inclusion and economic empowerment, addressing the funding gap often faced by small businesses.

DFC’s Global Initiatives:

  • The DFC’s approval of 22 projects globally, totaling $697 million, underscores its commitment to supporting initiatives across diverse sectors, including infrastructure, agriculture, and enterprise development.
  • The allocation of funds to SFC Finance Limited and VACAP Hospitality S.A. reflects the DFC’s focus on empowering female entrepreneurs in Sub-Saharan Africa and fostering economic growth through infrastructure development.

Potential Impact:

The injection of capital, from the DFC into Pezeshas efforts to improve credit scoring has the potential to boost growth and make an impact on Kenyas medium sized enterprises sector. With the use of cutting edge technologies and valuable partnerships Pezesha is well positioned to contribute to promoting access generating employment opportunities and fostering economic wellbeing, in the area.

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