Lupiya’s innovations in connecting Zambia to the world of online banking

The Digital Moonshot started in Zambia in 2022. We wanted to show how to maximize the results of our projects by focusing our efforts into a unified mission across the International Trade Centre (ITC).

Fintech company Lupiya shows how effective our integrated approach to digital can be. It’s raised millions of dollars in venture capital, helping its app transform banking in Zambia. The company now provides financial services to 65% of the adult population, with a focus on bringing women into the system.

‘Lupiya’s success in Zambia shows what we want to achieve with the Digital Moonshot in countries around the world,’ says Martin Labbé, ITC Tech Sector Development Coordinator.

‘When we work together across our policy, training and digital teams, small businesses can compete among the best companies globally.’ adds James Howe, Head of Digital Markets and Connectivity

Lupiya operates as a neobank, entirely online, without the traditional presence of physical branches. Their mission is to make online banking quick and user-friendly for small businesses and individuals alike.

‘Lupiya is a neobank that’s providing online loans, payments and investments, access to finance for individuals and SMEs looking to employe more individuals,’ said CEO and co-founder Evelyn Kaingu.

They have grown quickly, as the first company in Zambia to provide a completely online loan application process. This allows for small businesses to connect to prospective clients, engage in online international trade, and create new jobs.

‘As Africa rapidly digitizes, we’re seeing wider adoption of ecommerce. There’s more demand for online payment options,’ says CTO and co-founder of Lupiya, Muchu Kaingu. He’s also Evelyn’s husband. ‘We have learned that our customers require holistic banking services, providing low barrier to entry investment opportunities, and allowing customers to easily transact using online channels.’

They also offer management training and financial support to small-scale, female-run businesses, allowing women without financial support the opportunity to progress economically.

Financial services that reach 65% of Zambians

‘Lupiya is the first online lending marketplace that provides financial services to 65% of the adult population in Zambia with a special focus on women. Lupiya leverages technology to provide a low-cost branchless service to this demographic,’ said Evelyn Kaingu. ‘By employing alternative data in advanced machine learning models, Lupiya is able to provide credit to a large market segment that was ignored by traditional financial institutions.’

The catalyst for achieving change was Lupiya’s partnership with ITC’s FastTrackTech Africa project, which started in 2020. That turned into a chance to pitch their business to international investors at the Web Summit in Lisbon in November 2022.  FastTrackTech Africa is powered by ITC’s Digital Moonshot, which calls upon policymakers to empower small businesses like Lupiya in Zambia to participate in digital trade.

The Digital Moonshot initiative emphasizes affordable networks and digital literacy skills. The goal is to make online trade accessible to those in developing countries. Mentorship is an important component, providing expert guidance so that companies can make the most of the programme’s opportunities.

Through digital connectivity, Lupiya was able to raise $8.25 million in funds in addition to their initial $1 million startup fund, making headway in online trade accessibility for developing countries; ‘We would have not been here if the UN and ICT had not supported us’, says Evelyn Kaingu.

Video

28 June 2024

ITC’s Digital Moonshot initiative in Zambia aims to empower small businesses by enabling them to participate in digital trade. As part of this initiative, ITC aims to reach 20,000 small businesses by 2025, integrating expertise in policy, institutions, trade facilitation, and business intelligence.

As project partners, Lupiya (MSME), BongoHive (BSO), and the Ministry of Commerce, Trade, and Industry (Policy), share firsthand accounts of the project’s transformative journey, which has been supported by ITC’s W1 funders and USAID.