Exciting times for Pezesha as once again they achieve another notable win this year as one of the initial three Fintech companies to receive approval to participate in the CMA Regulatory Sandbox. Pezesha has been approved to extend their Digital Financial Marketplace by providing a digital crowdfunding Exchange platform, through which small businesses can apply online for funding provided by investors through loan notes . The CMA approval restricts the testing period to 12 months.
“The Regulatory Sandbox allows live testing of innovations under a less onerous regulatory regime and is expected to attract fintech companies and existing capital markets licensees to test the application of technology to financial services. The admission of the three firms is an important milestone noting that the Authority had set itself a target to admit five firms to the Regulatory Sandbox by 2023”, said Mr. Muthaura, CEO of CMA Kenya.
Upon exit from the Sandbox, Pezesha could be granted a license or approval to operate in Kenya subject to compliance with existing legal and regulatory requirements.
“We are excited about this CMA approval, as it brings endless possibilities as well as cements trust and credibility in our business by shortening our time to market and allowing us to achieve our mission of financial inclusion at a larger scale, while addressing any legal and regulatory requirements. More so, opening up the market for retail lenders, DFIs, angels and impact investors to provide working capital to quality and creditworthy small businesses, as their growth and opportunities are continuously choked due to the lack of affordable and accessible long term financing”, adds Hilda Moraa the CEO of Pezesha.
Pezesha is also a member of the African CrowdFunding Association ACFA, the regulatory framework for securities-based crowdfunding. Funded by DfID, this framework serves to fill the gap in crowdfunding regulations in African countries. Having a common regulatory framework would improve/increase business collaborations between African nations that take up the ACfA framework, which in the long run would position Africa as a global player and leader in the Fintech and crowdfunding space and Pezesha is leading the pack in this endeavour.
“Our vision as Pezesha is to evolve to a digital Exchange financial platform of choice and equality that brings financial inclusion to the underserved MSMEs who are the anchors of youth employment and economic development in Africa”, adds Hilda.