Mastercard Foundation and Kifiya Fintech Celebrate 100+ AI and Data Science Graduates from SAFEE Program

Recently, more than 100 AI engineers and data scientists completed their training through the SAFEE program—a collaboration between Kifiya Financial Technology and the Mastercard Foundation. Their graduation will significantly aid Ethiopia’s shift towards unsecured digital loans, data-oriented banking practices, and broader access to finance.

In 2024, the SAFEE initiative was introduced as an expansion effort aimed at assisting micro, small, and medium-sized businesses in obtaining digital financial services. This program seeks to release funds from banking institutions, develop innovative financing solutions and offerings, and transform the financial industry so that more MSMEs can secure non-collateralized loans and credits.

Built upon the achievements of Michu, a credit-score driven digital loan service aimed at micro, small, and medium-sized businesses, SAFEE was further validated through an extensive trial conducted by the Cooperative Bank of Oromia, Kifiya, along with support from the Mastercard Foundation. This initiative facilitated over 148,000 MSMEs in obtaining collateral-free operational loans within just 14 months.

SAFEE has established collaborations with six banks: Amhara, Bunna, Cooperative Bank of Oromia, Enat, Wegagen, and Zemzem (still active currently). These entities have provided more than 8.2 billion birr in unsecured loans to 263,312 female MSME owners. So far, all the platforms, which include the Michu large-scale pilot, have cumulatively issued over 22 billion birr in unsecured loans to 600,000 MSMEs throughout every region of Ethiopia.

"Improving access to financing involves more than just providing capital—it necessitates a supportive environment with the appropriate individuals, technologies, and collaborations. The SAFEE initiative aims to equip Ethiopia’s financial institutions with the necessary skills to expand their offering of unsecured loans and serve the many entrepreneurs and small-scale farmers who currently lack access to traditional banking systems," stated Mefthe Tadesse, Country Director for Ethiopia at the Mastercard Foundation.

Obtaining financing poses a significant obstacle for Ethiopia’s 20 million micro, small, and medium-sized enterprises (MSMEs) as well as its small-scale farmers. Fewer than three-tenths of these MSMEs manage to secure formal loans. Most banking entities depend on collateral-backed lending, which effectively excludes numerous business owners and marginalized groups from participating in economic growth.

Similar to Michu, the SAFEE program is facilitating systemic alterations in Ethiopia’s financial industry via three key transformations:

• Shifting from loaning based on collateral to providing loans without requiring collateral by utilizing AI-powered credit scoring models to evaluate risk and broaden lending parameters.
• Transitioning focus from a small number of large borrowers to widespread lending for numerous Micro, Small, and Medium Enterprises (MSMEs), allowing banks and financial technology companies to efficiently extend loans to thousands of MSMEs via data-driven lending models.
• Building the financial sector's capacity by ensuring Ethiopia's banks, fintechs, and financial institutions have the right AI and data science talent.

As Ethiopia progresses towards a more data-centric financial framework, young engineers skilled in data science, artificial intelligence, and machine learning are essential for its advancement. Graduates of today will drive the transformation within the financial industry. Training offered by 10 Academy—a not-for-profit, community-based effort known for developing scalable, economically viable, and pragmatic educational programs—has equipped participants with practical skills in areas such as machine learning, predictive analytics, and financial modeling.

"Lending seemed incredibly risky at first. However, when the bank reached out to me, I detailed every aspect of the procedure—the repayment conditions and how utilizing the loan would help expand my enterprise. That provided me with the confidence needed to submit an application. The significance of this loan transcends mere funds; it’s about empowerment. My hope is for other women to witness these possibilities and trust in their own capabilities," stated Misrak Abebaw, a participant in the young women's program.

A unique chance for banks, fintech companies, and recruitment firms

Banks are speeding up their initiatives in digital lending and financial inclusion by shifting focus from collateral-dependent loans for larger borrowers to unsecured loans aimed at MSMEs and small-scale farmers. As a result, the need for skilled professionals in AI and data science within this field is expected to increase further. Graduates from classes three and four along with the 74 alumni from earlier batches are stepping into these roles to bridge the current gaps.

“AI and data science are not just visions of the future anymore; they have become crucial instruments for expanding financial accessibility,” stated Munir Duri, CEO of Kifiya. “With SAFEE, our aim is to ensure that AI expertise is developed and deployed precisely where it’s required—within Ethiopia’s banking systems, enabling them to foster scalable, data-backed initiatives that create economic prospects for entrepreneurs and marginalized groups. Our efforts extend well past mere training to backing the transformation occurring within the financial industry.”

During the event, alongside the graduation ceremony, a recruiter roundtable took place, fostering dialogue among banking executives, fintech innovators, and government officials regarding AI talents, recruitment criteria, and the evolution of digital finance within Ethiopia. Furthermore, a Career Fair was organized where AI professionals and recruiters connected live, focusing particularly on aligning new graduates with roles that leverage their expertise in areas such as machine learning, fraud prevention, and credit risk assessment.

About the Mastercard Foundation

The Mastercard Foundation stands as a registered Canadian charitable institution and ranks among the most substantial global foundations. This entity collaborates closely with forward-thinking groups aiming to enhance education and foster financial inclusivity, thereby helping young individuals across Africa and indigenous youths within Canada secure meaningful employment opportunities. Initiated in 2006 following the transition of Mastercard into a publicly traded firm, this foundation operates independently from the corporation itself, maintaining headquarters in cities such as Toronto, Kigali, Accra, Nairobi, Kampala, Lagos, Dakar, and Addis Ababa. The direction and management of the Foundation’s strategies, activities, and programs are guided solely by its board members and executive team. To learn more about the Mastercard Foundation, you can explore their website for further details. http://www.mastercardfdn.org/

About Kifiya Financial Technology

Kifiya stands as an innovative AI-driven ecosystem tech firm committed to promoting financial and digital inclusivity throughout Africa. With expertise in areas like intelligent decision-making, financial services, digital farming, and smart transportation solutions, the company addresses key obstacles impeding progress for marginalized groups. Over ten years, Kifiya has demonstrated remarkable flexibility and creativity navigating this complex landscape, transforming itself from a budding start-up into a trailblazer in digital advancement. Its steadfastness empowers continuous development and adaptation to meet shifting community demands. To learn more about Kifiya, you can explore their website. https://kifiya.com

Kifiya Financial Technology Name: Henan Solomon

Phone:+251911296921

Email: hsolomon @kifiya.org

Mastercard Foundation Name: Simret Yasabu

Email: syasabu@mastercardfdn.org

Provided by Syndigate Media Inc. ( Syndigate.info ).