Wajenzi

95% of the world’s businesses are SMEs and They are known to be key drivers of economic development. They generate most of the new jobs and help diversify a country’s economic base. They also promote innovation; help deliver goods and services and can be a powerful force for integrating women and youth into the economy.

Yet despite all these benefits, SMEs remain significantly underserved by financial institutions and their credit gap is estimated at $ 2 trillion.

Remittances or the money migrants send back home, represent one of the largest flows of capital to developing countries. As an example, Africa receives more than $ 40 billion from its migrants in 2018. However, 70% of these remittances are used for consumption.

Migrants have emerged as an important community to assist countries to advance the sustainable development agenda and new forms of migrant investment have the potential to close the SDG financing gap estimated between $2.5 and 3 trillion.

Research has shown that migrants would like to invest in their country of origin. However, there are no financial services targeting them.

 

Solution

Wajenzi is an investment platform where businesses in Africa sell shares in their company to migrants in developed countries. Wajenzi means that anyone no matter where they live can now invest in vetted growth-stage businesses in Africa, by being able to choose companies they feel passionate about and gain part of ownership.

 

Contribution to SDGs

Wajenzi promotes financial inclusion by connecting migrants to investment opportunities in their country of origin. This contributes to SDG 8 (Promote sustained, inclusive and sustainable economic growth) and SDG 17 (Partnership for the Goal). In addition, Wajenzi focuses on promoting women access to finance (SDG 5). Wajenzi focuses on sectors that have an impact on SDGs such as Agriculture (SDG2), health (SDG3), education SDG4) and clean energy (SDG7).

 

Unit: Flex office