EMURGO Africa, the venture arm of Cardano’s official commercial entity, has announced a strategic investment in Fig Finance, a US-incorporated company providing innovative financial solutions across Africa, the EU, and the US. The partnership aims to revolutionize access to capital for underserved small and medium-sized enterprises (SMEs) in Africa while setting a precedent for similar models in other regions.
In many African nations, traditional banking systems face challenges in catering to the needs of creditworthy SMEs. Issues such as limited access to credit data and inadequate infrastructure hinder traditional banks in serving this crucial sector. This collaboration addresses these gaps, presenting a significant opportunity to democratize access to capital for SMEs.
Fig Finance has distinguished itself by demonstrating the ability to disburse loans instantly to hundreds of small businesses daily, with zero defaults. Leveraging the founders’ networks established during their roles as CEOs of emerging market banks and founders/advisors to major tech companies in Africa, Fig has positioned itself as an efficient and transparent access point for real-world decentralized finance (DeFi) lending in Africa and beyond.
Ahmed M. Amer, CEO of EMURGO Africa, emphasized the commitment to driving financial inclusion and empowering African communities on the Cardano blockchain. He stated, “By investing in Fig, we are not only supporting a pioneering fintech company but also contributing to the development of a robust DeFi ecosystem that empowers SMEs and fuels sustainable economic growth across the continent.”
Oscar Price, CEO of Fig Finance, expressed excitement about the partnership, stating, “We are thrilled to join forces with EMURGO Africa and enable capital to flow from DeFi to creditworthy businesses, with full line of sight and real-time reporting that has not previously existed.”
Akinseye Akinola, CFO of Fig Finance, highlighted the global underservice of SMEs by traditional lenders, noting the value Fig’s technology brings to solving this problem. “We’re excited to have built technology that solves this problem and can be deployed by our distribution partners with no coding required,” he added.
The collaboration represents a significant step in fostering a thriving DeFi ecosystem in Africa. EMURGO Africa’s investment in Fig Finance is seen as a testament to its dedication to empowering African entrepreneurs and unlocking new avenues for economic growth on the continent.
EMURGO Africa, as the commercial arm of Cardano in Africa, focuses on accelerating blockchain technology adoption by building partnerships and supporting the development of a vibrant DeFi ecosystem. Fig Finance’s technology, which allows B2B platforms to automate lending programs for small businesses, aligns with this vision, offering a quick, white-labeled, and flexible solution for institutional lenders and leading B2B platforms.
Through strategic partnerships like this, EMURGO Africa aims to pave the way for a more inclusive and prosperous future for Africa by harnessing the transformative potential of blockchain technology and decentralized finance.
Charles Rapulu Udoh is a Lagos-based lawyer, who has several years of experience working in Africa’s burgeoning tech startup industry. He has closed multi-million dollar deals bordering on venture capital, private equity, intellectual property (trademark, patent or design, etc.), mergers and acquisitions, in countries such as in the Delaware, New York, UK, Singapore, British Virgin Islands, South Africa, Nigeria etc. He’s also a corporate governance and cross-border data privacy and tax expert. As an award-winning writer and researcher, he is passionate about telling the African startup story, and is one of the continent’s pioneers in this regard.