Mastercard, in conjunction with Johannesburg-based fintech firm SAVA, has unveiled a strategic partnership aimed at bolstering small, medium, and micro enterprises (SMMEs) by providing advanced payments technology and infrastructure. This collaboration is set to empower small businesses in South Africa, Nigeria, Kenya, and Egypt through a digital platform driven by SAVA’s Payment Transaction System (PTS). The platform features digital bank accounts and tools for accounting integration, designed to streamline company expense management.
SMEs, the backbone of Africa’s economy, account for 60% of employment and up to half of the Gross Domestic Product (GDP) in certain countries. However, they often grapple with the limitations of a predominantly cash-based economy and a substantial financing gap estimated at $330 billion by the World Bank. This partnership underscores Mastercard’s commitment to financial inclusion, aiming to integrate 50 million SMMEs into the digital economy by 2025.
SAVA’s technology focuses on simplifying financial operations for SMMEs, aiding in their growth and scalability. Under this partnership, SAVA will offer both virtual and physical cards, featuring pre-configurable budgets manageable through its app. This integration with business accounting systems will enable efficient spend management on employee cards and facilitate time and cost savings through automated financial reconciliations.
Dimitrios Dosis, President of Mastercard EEMEA, expressed that this initiative leverages the synergy of partnerships and innovative technology to foster a sustainable future and bolster economic growth through small business empowerment. The deployment of effective technology is crucial for enhancing financial inclusion in Africa, ensuring that SMMEs benefit fully from the digital economy.
Kola Olajide, CEO of SAVA, highlighted the partnership’s role in validating their commitment to crafting innovative, market-specific solutions. He emphasized the potential of their unique financial management platform to provide SMMEs with enhanced operational control. Olajide acknowledged the support from key partners like Access Bank in South Africa, Microsoft, and the South African Reserve Bank (SARB), as well as investors like Breega, Quona Capital, and CRE Ventures for facilitating SAVA’s market entry and growth.
SAVA also addresses the challenges of expense management and filing for SMMEs by offering a centralised dashboard for controlling spending, reducing the reliance on cash transactions. Its comprehensive suite of financial services enables efficient management of business expenditures across various platforms.
Through this collaborative effort, Mastercard is at the forefront of fostering digital transformation, ensuring that its partners can effectively manage their digital interactions and consumer experiences, thereby contributing significantly to financial inclusion and value creation in the digital landscape.
