NAIROBI, Kenya August 24 — Digital SME marketplace Solv Kenya has signed a pact with Standard Chartered bank to enable MSMEs to access supply chain financing at an affordable rate.
The partnership which will last for three months will allow buyers and sellers to improve their supply efficiency on the e-commerce platform.
During the first quarter trial period, Solv co-designed an invoice financing program in partnership with eight multinational manufacturing and trading companies, three financial partners and over 700 MSMEs. The partners include EABL, BAT, Nestle among others.
As part of the deal, the over 700 MSMEs are set to enjoy exposure to different financial institutions which will not only strengthen their relationships but also give them access to financing at affordable rates.
MSMEs will also profit from the partnership by leveraging their relationships with suppliers, who will expose its pool of MSMEs to Solv Kenya’s network of financial institutions and give them access to financing at favorable rates.
Speaking on the partnership, Solv Kenya Chief Executive Officer (CEO) Sheila Kimani Omukoba said the pact will expedite growth for businesses in the country more so during this digital era.
“We are proud to revolutionize, simplify and accelerate growth for micro, small and medium businesses in Kenya using technology and data,” she said.
In addition to addressing the different challenges the MSMEs face, the program will also enjoy accessing competitive pricing from different options, getting additional customers from manufacturers and traders as well as new markets for financial institutions.
The program which was first launched in India, a country that enjoys an inclusive trade ecosystem for its 63 million MSMEs was developed by SC Ventures and the Fintech Investments unit.
The service has now been made available to MSMEs in Kenya this year, who account for 80 per cent of all businesses in the country, approximately 15 million jobs and 30 per cent of Kenya’s Gross Domestic Product (GDP).
