Many small and medium-sized businesses (SMBs) in Africa face difficulty obtaining funding from traditional banks. To overcome this obstacle, a group of tech entrepreneurs in Morocco has created an innovative solution.

Talaty, a Moroccan fintech start-up founded in 2022 by Soulaimane Lahrech, Simo Bernoussi, Ilyas Oudghiri, and Zakaria E., is leveraging artificial intelligence (AI) to address the financial challenges faced by small and medium-sized enterprises (SMEs). By analyzing SME data, the company determines creditworthiness even for businesses with limited financial records.

Through advanced AI technologies and behavioral finance analytics, Talaty aims to optimize credit assessments, cutting operational costs and default rates by up to 90%. This innovative approach seeks to improve SMEs' access to financing while equipping financial institutions with effective tools for risk management and operational efficiency.

In December 2024, Talaty secured undisclosed funding to bolster its presence in Morocco and explore expansion into neighboring markets. "Securing financing remains a major obstacle for SMEs, accounting for 40% of bankruptcies caused by payment defaults. Our AI-powered platform simplifies this process, enabling partner institutions to provide effective and rapid financial support," said Soulaimane Lahrech.

Despite their critical role in the African economy, SMEs continue to face significant hurdles in obtaining the funding required for growth. According to Didier Acouetey of AfricSearch, a South African HR consulting firm, as reported by Forbes Afrique, "Africa has over 100 million SMEs needing $350 billion annually for development, yet they secure barely 20% of this amount."

By Adoni Conrad Quenum,

Editing by Feriol Bewa