Asante launches lending product linked to Rwanda mass transport system
Amongst the various ecosystems Asante is active in is the Mass Transit ecosystem, where the business has been active in a unique opportunity of financing bus companies. Its partner in this ecosystem is a technology company that has been providing innovative solutions for bus companies in Rwanda and Cameroon since 2015. The partner provides cashless solutions for bus companies to collect revenue, alleviating risks associated with cash payments. Bus transport is the leading means of transport in Rwanda and the business is managed and operated by formalised bus companies that are regulated by the Rwanda Utilities Regulatory Authority.
At the back of the cashless payment system run by its channel partner, Asante is able to determine a bus company’s creditworthiness through its decision processes and allocate credit limits for real-time financing via its proprietary mobile App called PRONTO. As a result, Asante can provide, among other things, working capital financing in real-time, at competitive rates, and with no collateral. This product has been received well in the market, and Asante is looking to explore further opportunities, such as CAPEX financing (bus acquisition). This is particularly relevant given that the transport regulator in Rwanda has put a requirement for bus companies to replace their fleet aged over 20 years and to increase the capacity for Mass Transit in towns.
Through these partnerships and unique adaptations to the needs of growing businesses in Africa, Asante is set to continue accessing the continent’s underserved communities and provide them with inclusive financing that will expand their territories beyond imaginable limits.
Asante Financial Services Group (“Asante”) is an SME Digital Bank that provides a broad range of financial services to growing businesses in Africa. The business commenced operations in 2018 and has a strong presence in Uganda, Kenya, Nigeria, and Rwanda, with over 200,000 MSMEs supported since inception. It plans to expand into more markets on the African continent.
Asante runs an ecosystem-based digital lending operation and works with leading corporates as its channel partners to provide products such as small business working capital finance, mobile money agent float finance, smartphone finance and insurance premium finance to mostly MSMEs. Its partners cut across 8 sectors and include big industry players, namely, Safaricom, Standard Chartered, Dukapay, Jubilee Insurance, Jumia, Sky Garden, Copia, Kenya Airways, Telkom, DPO Group, and KUA Finance.
Sources:
- Asante Financial Services Group:
- SME Finance Forum
- Regulations Governing Transport Services in Rwanda: