About Us:
AfriCred Microfinance is an innovative fintech focused on advancing financial inclusion and economic empowerment across Africa, with a specialization in providing financing to MSMEs, particularly in import/export trade finance and general trade through asset-based finance. By simplifying credit access for underserved populations, AfriCred offers both financial assistance and essential business management training, fostering economic and social progress across diverse communities.
Leveraging blockchain technology, AfriCred facilitates seamless fund transfers between unbanked individuals and financial institutions. This holistic approach strengthens the informal sector and supports small business owners, enhancing local economies and promoting regional stability.
Overview
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Business Name: AfriCred Microfinance
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Current AUM: $1,262,689
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$ Volume of Transactions Completed Last 12 months: $1,091,183
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Location and Team Size:
Location - Africa: Mali and Ivory Coast and ecowas countries
Team Size – 10 -
Years in Operation: 2 Years
Key Professional Partners
TokenMinds:
- Overview: TokenMinds is a pioneering entity in the digital asset realm, emphasizing blockchain technology applications.
- Focus: Their expertise encompasses crypto asset management, blockchain consulting, and development of innovative financial blockchain tools.
- Contribution: TokenMinds’ insights and technological prowess are instrumental in shaping AfriCred’s blockchain and digital finance strategies.
7 Bits Technologies
- Overview: A premier web and mobile development company founded in 2011. Their mission is to bridge the gap between technology and business growth.
- Focus: Technological partner - smart contracts, cross border platform.
- Contribution: As a strategic collaborator and technology partner to AfriCred, Seven Bits Technologies plays a pivotal role in shaping AfriCred’s blockchain and digital finance strategies. Their innovative solutions, agile approach, and deep expertise contribute significantly to the project’s success.
Cryptexus:
- Overview: Cryptexus, a Crypto and Blockchain Consulting Agency, empowers crypto startups and businesses by providing essential services across the entire spectrum of their journey.
- Focus: Investor relations, tokenomics, investment materials, strategy.
- Contribution: Cryptexus provides insights and guidance. They help shape the project’s direction by offering valuable perspectives on blockchain and digital finance strategies.
Bitlocus:
- Overview: Bitlocus offers a wide range of ready-made tools to bootstrap FinTech / Crypto projects.
- Focus: Crypto-as-a-service, NFT development, advisory services.
- Contribution: Bitlocus provides practical support and guidance. Their team offers strategic advice on token liquidity, potential listings, and establishing partnerships, enhancing project progression.
Business: Describe your business and go to market strategy.
What makes your approach unique within your industry?
- Holistic Financial Empowerment : Offers both accessible loans and business management training to MSMEs, especially targeting women, youth, and farmers.
- Blockchain Integration : Leverages blockchain to improve fund transfers, simplify transactions for unbanked individuals and fostering financial inclusion.
- Real-World Assets (RWA) : Utilizes assets like gold to create financial products that bridge traditional banking and new financial innovations.
- Focus on the Informal Sector : Provides specialized support for informal businesses (crafts, agriculture, markets) essential to Africa’s economy.
- Innovative Financial Tools : Develops tailored financial instruments like NFTs and Informal Finance Tokens (IFT) to cater to unique regional needs.
Why are you a good partner for Centrifuge?
- Aligned Mission : Both AfriCred and Centrifuge prioritize expanding access to capital for underserved markets and communities.
- DeFi Synergy : Centrifuge’s decentralized finance expertise complements AfriCred’s blockchain-backed financial solutions, enabling diversified funding avenues.
- Regional Presence : AfriCred’s established operations in ECOWAS countries provide a strong market base for Centrifuge’s services.
- RWA Focus : AfriCred’s RWA-backed products align well with Centrifuge’s model, fostering asset-backed financing options that can drive economic growth across Africa.
- Enhanced Financial Inclusion : Together, the partnership can increase support for MSMEs, promote sustainable job creation, and advance economic stability in Africa.
How do you differentiate yourself from competitors?
- Blockchain Integration : AfriCred is one of the few companies in this space using blockchain technology. This allows for secure, efficient transactions, particularly beneficial for the unbanked population, and sets it apart from traditional financing models used by most competitors.
- Comprehensive Service Offering : Unlike many competitors that focus solely on issuing loans, AfriCred offers a broader suite of services, including payments and micro-insurance on loans. This integrated approach supports MSMEs more holistically, covering various financial needs.
- Focus on ECOWAS Region : While many competitors serve single or multiple African countries, AfriCred focuses specifically on Mali, Ivory Coast, and other ECOWAS countries, allowing it to tailor its services to regional economic conditions and needs.
- Capital Structure : Currently bootstrapped, AfriCred is also actively raising capital, which provides flexibility and control in refining its growth strategies to better meet the needs of underserved African markets.
- Micro-Insurance on Loans : AfriCred is among the few offering micro-insurance on loans, providing added security for MSMEs and differentiating itself as a provider of risk management solutions, unlike many competitors who lack this feature.
- Real-World Assets (RWA) and Financial Innovation : AfriCred stands out with its use of real-world assets, like gold, to create innovative financial products, offering a unique value proposition in financial inclusion and wealth creation in Africa.
How is your entity financed today, what are the current sources of capital:
- AfriCred is currently bootstrapped, relying on personal investment and reinvested profits as the primary sources of capital.
What is your entity’s revenue/fee model:
- Loan Interest : Revenue from competitive interest rates on loans provided to MSMEs.
- NFT Transaction Fees : Fees from NFT sales and transfers, offering clients innovative financing options.
- Service Fees : Charges for additional services like business management training and micro-insurance.
- IFT Token Fees : Small transaction fees from trades using AfriCred’s IFT token within the ecosystem.
- Cross-Border Fees : Revenue from facilitating international payments for MSMEs, supporting their global reach.
DeFi
Outline why DeFi is important to your business strategy & Articulate why Centrifuge’s community and protocol is a fit for financing.
- Access to Capital: DeFi platforms widen the pool of investors, enabling Africred to secure funding beyond traditional banking systems.
- Lower Costs: Reduced intermediaries in DeFi lead to lower transaction fees, allowing more funds to be directed toward operations.
- Community Engagement: DeFi fosters strong community involvement, enhancing customer engagement and loyalty.
Structure: Terms
- Pool Size: $ 1 Million
- Average Ticket Size: $1,150 (Average Loan size)
- Expected Default Rate: 1%
- Expected borrowing rate on senior tranche (on-chain): 13.75%
- Expected lending rate to end borrower (off-chain): 19%
Website: https://africa-africred.com/
Email: credit@africa-africred.com