Financial tech expands access for African informal businesses
Written by Black Hot Fire Network Team on February 3, 2026
Nearly 70% of Africa’s economy operates within the informal sector, with millions of small traders, cross-border merchants, and micro-entrepreneurs primarily using cash for transactions. This reliance on cash creates vulnerabilities including theft, financial loss, and limited access to formal economic systems.
Mukuru, a financial platform, aims to bridge the gap between Africa’s formal and informal financial ecosystems. According to Mukuru Chief Executive Officer Andy Jury, approximately two-thirds to 75% of payments and transactions in Africa currently occur informally.
Reliance on Cash and its Challenges
A significant portion of Africa’s economic activity takes place outside of traditional banking and digital infrastructure. This dependence on cash exposes individuals and businesses to risks such as theft and financial loss, while also hindering their ability to build financial records and access formal economic systems. Many customers accessing Mukuru’s services have never previously used a bank account or digital financial product.
Mukuru’s Approach to Financial Inclusion
Mukuru provides financial access to individuals with mobile phones and identification, enabling them to send, store, spend, and borrow money. As customers increase their transaction activity, they gain digital confidence, and costs decrease due to improved data profiles. This shift unlocks access to additional products like small loans, insurance, and digital wallets. The company emphasizes understanding the realities of informal entrepreneurs and designing products tailored to their needs.
Cross-Border Remittances and Digital Transformation
Historically, cross-border remittances involved unreliable and costly methods, such as transporting money via taxis, which could take weeks and involve multiple fees. Mukuru now facilitates instant cross-border payments through mobile phones, ensuring affordability, security, and traceability.
Impact on Cross-Border Traders
Digital payments are transforming the operations of cross-border entrepreneurs. For example, a Zambian trader purchasing goods in Malawi previously faced lengthy travel and negotiation processes. With digital payments, the trader can now pay instantly, avoid extensive travel, dedicate more time to production or sales, and reduce overall risk and costs.
Expanding Across Africa
Mukuru operates a single technology platform across 13 African markets, creating a consistent cross-border financial ecosystem for customers regardless of their location. The company anticipates that fintech solutions will be transformative for millions of informal workers as digital adoption accelerates across the continent.
