Zimbabwean fintech company SoshoPay is introducing an innovative approach that links energy access with small and medium-sized enterprise (SME) financing, helping banks extend credit to underserved businesses. By combining digital payment systems with energy usage data, the company is enabling financial institutions to better assess risk and support SMEs that traditionally struggle to access loans.
SMEs are the backbone of Zimbabwe’s economy, contributing significantly to employment and local production. However, many of these businesses face persistent challenges when seeking financing from banks. Limited credit histories, lack of collateral, and inconsistent financial records often make it difficult for lenders to evaluate their creditworthiness.
SoshoPay addresses this gap by leveraging energy access as an alternative indicator of business activity and stability. Many SMEs rely on electricity for production, retail operations, and service delivery. By tracking energy usage patterns through digital payment systems, SoshoPay provides banks with real-time insights into business performance and cash flow behavior.
This data-driven approach allows lenders to make more informed credit decisions. Instead of relying solely on traditional financial statements, banks can assess how consistently a business operates based on its energy consumption patterns. This helps reduce lending risk and increases confidence in extending credit to previously underserved entrepreneurs.
The model also promotes financial inclusion by opening up access to working capital for small businesses that would otherwise remain outside the formal banking system. With improved access to finance, SMEs can invest in expansion, hire more employees, and improve productivity, contributing to broader economic growth.
In addition, the integration of energy access into financial services supports Zimbabwe’s push toward digital transformation and economic modernization. It demonstrates how fintech innovation can address structural challenges in developing economies by creating new forms of credit scoring and risk assessment.
SoshoPay’s approach highlights the growing convergence of energy, technology, and finance. By turning everyday utility usage into valuable financial data, the company is helping reshape how banks evaluate SMEs and extend credit.
As more financial institutions adopt alternative data models, solutions like SoshoPay could play a key role in unlocking SME financing across Africa, driving entrepreneurship and strengthening economic resilience.
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