Africa has experienced robust macroeconomic growth over the last five years and was the second fastest growing region in 2019 with a GDP of $2.6T, a 3.7% increase on 2018. Nigeria – Nomad’s initial beach head – makes up $0.5T, 50% of which comes from Micro, Small and Medium Enterprises (MSMEs).
These 40M+ MSMEs in Nigeria face a number of challenges in starting and growing their businesses, the biggest being access to funding. Furthermore, insufficient cashflows, staying on top of their tax obligations and accounts reporting also make running a business difficult in Africa’s most populous nation. Finally, businesses require other support beyond just finance-related items, and it is this catalogue of challenges that Nomad is seeking to address.
Nomad is partnering with Standard Bank to launch a new digital banking proposition across its Nigerian clients. Nomad is using a combination of data science and advanced analytics to build credit worthiness for businesses who would not otherwise be eligible for cash advances, thus increasing their probability of credit access and subsequently, improving their business outcomes.
The company plans integrations to a suite of services from accounting software and pension providers to payment solutions and insurance – a super app of sorts – to become the one-stop shop for birthing, running and scaling a business. This will be further augmented by more fundamental financial products such as inventory management and invoice factoring, to improve cash management for African MSMEs