Africa’s financial technology industry is undergoing a significant transformation as fintech companies increasingly shift their attention from traditional consumer lending to providing much-needed financing for Micro, Small and Medium Enterprises (MSMEs), a move expected to accelerate business growth, create jobs and stimulate economic development across the continent.
For years, access to affordable financing has remained one of the biggest obstacles preventing millions of small businesses from expanding their operations. Despite accounting for the overwhelming majority of businesses and serving as major employers across African economies, MSMEs have continued to struggle to obtain loans from conventional financial institutions due to stringent lending requirements, collateral limitations and high borrowing costs.
The persistent financing gap has prompted governments, development finance institutions and private sector stakeholders to intensify efforts aimed at improving access to productive credit for small businesses. Increasingly, attention is turning to fintech firms, whose technology-driven lending models are proving capable of reaching businesses that have traditionally been excluded from formal banking services.
DDM News gathered that digital financial service providers are now expanding beyond short-term consumer loans to introduce specialised merchant lending products designed to provide working capital and growth financing for small businesses. The shift represents a major evolution in Africa’s fintech ecosystem, where innovation is increasingly being directed toward supporting productive economic activities rather than solely meeting immediate consumer credit needs.
Providing fresh evidence of this growing trend, global artificial intelligence fintech company Optasia has unveiled its first merchant lending proposition as part of a broader expansion strategy targeting emerging markets. The initiative marks a strategic milestone for the company as it broadens its product offerings while positioning itself to address one of Africa’s most pressing economic challenges—limited access to finance for small businesses.
The announcement was contained in the company’s interim trading update covering the six months ended June 30, 2026, where Optasia disclosed that it had successfully launched its first merchant lending solution. According to the company, the new financing platform will gradually be rolled out across its existing operational footprint while complementing its continued expansion into new African markets, including Gabon and South Sudan.
The launch comes at a time when development finance institutions continue to stress that inadequate access to finance remains one of the greatest barriers to the growth and sustainability of MSMEs across the continent.
In Nigeria, the Development Bank of Nigeria (DBN) has consistently identified affordable and sustainable financing as one of the most significant challenges confronting small businesses. The institution has repeatedly maintained that expanding access to business credit is essential for stimulating entrepreneurship, increasing employment opportunities, strengthening enterprise development and promoting inclusive economic growth.
Similarly, the International Finance Corporation (IFC) has estimated that Africa’s MSMEs face a financing gap amounting to hundreds of billions of dollars, highlighting the enormous unmet demand for business loans across the continent. The financing deficit has continued to constrain expansion plans, reduce productivity and limit the contribution of small businesses to national economic growth despite their strategic importance.
Industry experts believe merchant lending is rapidly emerging as one of the fastest-growing segments within Africa’s fintech industry because of its ability to leverage technology to overcome many of the limitations associated with traditional lending.
Unlike conventional financial institutions that often require extensive collateral and lengthy documentation before approving loans, merchant lending platforms utilise digital payment records, transaction histories, artificial intelligence and sophisticated data analytics to evaluate the financial health of businesses. This technology-driven approach enables lenders to make faster and more accurate credit decisions while extending financing to businesses that may have previously been considered ineligible by traditional banks.
Analysts note that this innovation is particularly important for small retailers, merchants and informal businesses whose consistent transaction records often provide a more accurate reflection of their repayment capacity than conventional collateral requirements.
The growing adoption of merchant lending also aligns with broader policy initiatives aimed at directing more digital financial services toward productive sectors of African economies. Policymakers increasingly recognise that expanding access to business financing has a multiplier effect by supporting entrepreneurship, encouraging local manufacturing, boosting commerce and creating sustainable employment opportunities.
Optasia’s latest expansion into merchant lending coincides with another period of impressive financial performance, highlighting the resilience of its diversified business model despite operational challenges experienced in one of its largest markets.
The company reported that its Mobile Financial Services (MFS) business now contributes approximately 72 per cent of total group revenue, reflecting continued growth across several international markets. Strong performances in Ghana, Pakistan, Indonesia and Congo-Brazzaville helped offset the temporary disruption experienced in Nigeria following the suspension of Airtime Credit Services (ACS) earlier this year.
According to the company’s Board, the strong financial performance demonstrates the resilience of Optasia’s technology platform and validates the strength of its diversified operating model across multiple jurisdictions.
Based on its preliminary management accounts for the six months ended June 30, 2026, Optasia expects revenue growth of between 50 and 60 per cent compared with the corresponding period in 2025. The company also projected adjusted EBITDA growth of between 40 and 50 per cent, alongside normalised net income growth ranging from 30 to 40 per cent during the same period.
Encouraged by the strong first-half performance, the company reaffirmed its full-year guidance, maintaining expectations for revenue growth and adjusted EBITDA expansion of more than 30 per cent before the end of 2026.
Although the temporary suspension of Airtime Credit Services in Nigeria affected operations earlier in the year, Optasia confirmed that the service resumed after being restored in June. Nevertheless, the company adopted a cautious outlook regarding the pace of recovery in the Nigerian market.
Management stated that it now expects full-year normalised net income growth of between 25 and 35 per cent, reflecting prudent assumptions regarding the gradual recovery of transaction volumes following the resumption of operations.
DDM News reports that Optasia’s expansion into merchant lending reflects a much broader evolution taking place across Africa’s fintech ecosystem. Increasingly, technology companies are repositioning themselves as enablers of business productivity by deploying artificial intelligence, machine learning and advanced data analytics to provide working capital financing to merchants and small enterprises.
Financial analysts believe this model not only helps close Africa’s longstanding MSME financing gap but also strengthens financial inclusion by extending credit opportunities to underserved entrepreneurs who have historically remained outside the formal banking system.
For investors, the company’s latest trading update also reinforces the importance of geographic and product diversification in building resilient fintech businesses. By expanding across multiple international markets while introducing new financial products such as merchant lending, Optasia has demonstrated its ability to withstand temporary disruptions in individual markets without significantly affecting its overall growth trajectory.
As Africa’s digital finance industry continues to mature, merchant lending is increasingly being viewed as one of the sector’s most promising growth frontiers. With governments encouraging greater financial inclusion, development institutions advocating increased business financing and fintech firms leveraging artificial intelligence to transform credit assessment, industry observers believe technology-driven lenders will play an increasingly central role in supporting enterprise development, closing the MSME financing gap and driving sustainable economic growth across emerging African markets in the years ahead.
