FINTECH FOR THE MICRO ENTERPRISE
Accelerating Economic Development
The Empire Partner Foundation Tech Hub has partnered with Siyafunda CTC and PayPoint Technologies to create the FinTech 4 Micro-Enterprise initiative. The initiative will provide industry-leading financial technology to female entrepreneurs in rural communities across South Africa.
Our mission for this initiative is aligned with our Foundation’s goal of #BuildingAfricaThroughTech. We want to accelerate the development of financial infrastructure in rural communities while unlocking opportunities for businesses to grow, entrepreneurs to thrive and for communities to be uplifted through technology. By providing Financial technology to these women, we will enable greater economic participation as well as financial inclusivity.
According to a 2018 report by the International Finance Corporation, there were 2,070,164 informal micro-enterprises and 816,726 formally registered Micro-Enterprises in South Africa. In total, 62% of micro, small and medium enterprises are owned by men, with the remaining 38% owned by women. The SME sector is most critical as an employer. While it only pays about 6% of corporate taxes and accounts for 20% of GDP, small and medium enterprises employ about 47% of South Africa’s workforce.
These statistics emphasise the importance of the Micro-Enterprise sector in South Africa. The Empire Partner Foundation believes that this sector is the key in increasing employment in South Africa which is absolutely necessary in a post-COVID19 context where millions of people have been left unemployed. Creating employment will lead to more development and economic stimulation.