Munir Duri, CEO and founder of Kifiya.

Kifiya, an Ethiopian fintech business, is the first company in the East African country to earn a silver award for product innovation at the Global SME Finance Awards, held recently in São Paulo, Brazil.

Kifiya is an AI-powered firm that provides alternative data-driven scoring, embedded finance, and agri-tech solutions.

The fintech stated that the award demonstrates the company's dedication to "building a digitally and financially inclusive future by leveraging AI and cutting-edge technology to bridge the credit and market access gap in Sub-Saharan Africa."

The Global SME Finance Awards 2024, organised by the International Finance Corporation and the SME Finance Forum, recognised institutions that have provided new products and services while also achieving significant outcomes that boost finance and services to SMEs.

Munir Duri, CEO and founder of Kifiya, said: "This also demonstrates Ethiopia's new-found drive for innovation led by the reforms instituted by our Prime Minister, Dr. Abiy Ahmed, which have created an enabling environment and policies that foster and encourage innovation, allowing companies like ours to thrive."

According to the company, in Ethiopia, where 50% of the adult population is unbanked, Kifiya's financial solutions enable thousands of SMEs to have access to much-needed loans and financial services.

Kifiya said its AI-powered alternative credit scoring and rating technology infrastructure addresses the issues of Micro, Small, and Medium Enterprises' (MSMEs) lack of collateral and credit history, allowing them to be credit-scored and access uncollateralised financing for the first time in Ethiopia.

“One of the earliest successes of rolling out this infrastructure was a partnership with the Cooperative Bank of Oromia, which introduced a digital lending product that has enabled close to 300,000 MSMEs to access over $100 million in uncollateralized credit to date,” Kifiya said.

The company said further its "intelligent embedded finance tech infrastructure enables banks to originate, extend, manage, and collect uncollateralised digital credit and provide Sharia-compliant financial products relevant and appropriate to MSMEs in agri-food systems, manufacturing, and service sectors."

It added its platform enables fintechs and enterprises to integrate inventory credit and Buy Now Pay Later financial services, digitise e-commerce trade processes, and provide inventory credit to MSMEs.

In addition, the company also offers an agri-tech platform that digitises smallholder farmers, enabling them to access credit, inputs, markets, and micro-insurance to protect against climate-related risks and improve productivity.

To date, the company said, more than 1.5 million smallholder farmers in Ethiopia have accessed more than $10 million of agricultural inputs.

Duri commented: "Our approach is about more than just technology. We are committed to driving sustainable, inclusive growth by solving systemic challenges that prevent millions of Africans from accessing finance and markets. This award motivates us to continue innovating and expanding our solutions across Africa."