Zambian startup eShandi, a pan-African challenger bank, is leveraging AI-driven creditscoring and digital financial services to provide instant, collateral-free loans, seamless payments, and banking solutions, empowering underbanked SMEs and individuals across Africa.
Founded in 2019 as PremierCredit, and initially as a microfinance institution, eShandi has built a platform that leverages new technologies such as AI to assess the creditworthiness of unbanked individuals, who tend to have little of the formal documentation that traditional banks require.
It now offers a range of digital lending and flexible financial solutions that cater to the needs of everyday Africans and SMEs, while offering a clear pathway to financial empowerment and self-reliance.
“We realised that many SMEs and individuals, particularly women, had limited access to capital from traditional financial institutions, stifling their growth potential and financial security,” eShandi co-founder Chilufya Mutale-Mwila, who formed the business alongside partner Eugene Mwila, told Disrupt Africa.
“eShandi initially started as a microfinance institution specialising in using technology to provide unbanked groups with access to financial services, such as affordable loans. Since then, we have grown into a wider-ranging fintech company that offers a broad range of services aimed at boosting financial inclusion and self-reliance for underbanked groups.
The company has also expanded into three new markets – Zimbabwe, Kenya, and South Africa – as part of its ultimate vision of becoming a pan-African challenger bank disrupting the status quo across the continent.
“Bank account ownership in Africa has been rising in recent years, however there are still hundreds of millions of individuals and SMEs across the continent which struggle to access basic financial services. Indeed, over 350 million adults in Africa continue to live in cash alone, without the security of a bank account or other formal financial services,” Mutale-Mwila said.
“Many traditional banks simply do not have either the willingness or the infrastructure required to provide financial services in rural or underserved areas. This is a problem that particularly impacts women in Africa – the gender gap when it comes to bank account ownership in Sub-Saharan Africa is twice the developing economy average at 12 per cent. There is therefore a large gap in the market for eShandi to step in and provide financial services where existing institutions cannot.”
eShandi’s competitive edge lies in its use of cutting-edge technology, particularly artificial intelligence.
“Our AI-driven platform enables us to assess credit applications and disburse loans with unmatched speed and accuracy, eliminating the need for traditional paperwork and checks,” said Mutale-Mwila.
“Beyond technology, we’re committed to financial literacy. We embed financial education within our platform, ensuring that customers fully understand their options and can make informed financial decisions. This focus on financial empowerment sets us apart from other fintech companies, as we don’t just provide services—we provide the tools for long-term financial success.”
eShandi has so far served over one million individuals and SMEs.
“Our revenue has grown from US$91,000 in 2020 to US$12 million in 2023, which reflects our robust growth,” Mutale-Mwila said.
The startup has also secured a total of US$12 million in funding from major international investors including Enygma Ventures, INOKS Capital and Mastercard, as well as through crowdfunding platforms.
“These investors are instrumental in driving our growth and helping us achieve our pan-African expansion,” said Mutale-Mwila.
“We aim to expand into further African markets in due course. Our mission since the start has been to empower communities with access to the formal financial services they need to grow and achieve their financial goals, and that mission is not limited to Zambia.”
eShandi has several revenue streams, given it offers a range of financial services to underserved individuals and SMEs across Africa.
“For example, we offer tailored and affordable loan products such as SME loans, group loans, and logbook loans aimed at promoting financial inclusion for marginalised communities for which we receive revenue by way of interest and fees,” Mutale-Mwila said. “We have also partnered with local agents in our existing markets to extend banking services to underserved areas, facilitating cash deposits, withdrawals, and other transactions, contributing to our revenue growth through transaction fees.”
