UK fintech Zvilo enters South Africa with a R2bn starting target for SME funding

what happened

Reuters reports that UK trade finance provider Zvilo has started operations in South Africa. The firm's first goal is R2bn of working capital for smaller businesses, with lending expected to climb to R10bn within three to five years. According to the company, the initial target lines up with large buyers whose shares trade on the Johannesburg Stock Exchange (JSE).

Zvilo says it wants to narrow South Africa's SME funding shortfall, estimated at about R350bn, by working through local supply chains. The lending will be paired with a technology platform. Founder and group CEO Admir Imami said limited access to money continues to hold back small business growth.

Peter Maila will lead the African business as CEO. He previously was co-chief investment officer at the Dutch development bank FMO. Palesa Mabasa and Shiko Mbambu will run the South African unit as managing partners.

why it matters

For markets this is a niche story with little effect on prices. It shows how international fintech firms are entering emerging markets through supply chains, where access to working capital remains a bottleneck.

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