According to Communications Authority CEO Ezra Chiloba, startups in the East African nation of Kenya have the potential to hasten the country's digital transformation by up to 70%.
The CEO noted that significant obstacles including finance and regulatory restrictions cause the majority of them to close their doors in less than a year. “Close to 80 percent of startups often die within the first year of operation, while only three to five percent make it beyond the one-year period of survival,” Chiloba stated.
He went on to say that the remaining 15% are in the uncertain group, with very slim possibilities of survival. To address this, Chiloba suggested that entrepreneurs in the nation, particularly fintech, collaborate with investors from all industries.
"Leveraging partnerships means the firms will be able to enhance financial control and drive operational efficiency by providing valuable insights and other strategic support functions, enabling them to focus on core activities and achieve their strategic goals," Chiloba explained.
Nasim Devji, Group CEO and Managing Director of DTB offered similar advice, stating that partnerships are critical in speeding the development of new FinTech products and services.
"For instance, serving as the link between banking and technology, collaborations give customers access to personalised, secure, and user-friendly financial solutions, and position the parties at the forefront of the industry,” Devji said.
The two talked yesterday in Nairobi at the market entry announcement of Boya, a Kenyan fintech that created a virtual expenditure card to assist firms in interacting effortlessly and at lower prices.
The application also aims to assist businesses in managing both domestic and foreign payments and costs using a single virtual card solution with no fees.
Boya's CEO, Alphas Sinja, stated that the achievement coincided with cooperation with Diamond Trust Bank and the digital payment network Visa. DTB's cards have been integrated as a service offering into Boya's platform.
Customers of Boya will be able to use virtual corporate cards enabled by the Visa card program as a result of the integration.