AI-powered digital lending platform Optasia is preparing to expand into Ethiopia as part of a broader push into two of Africa’s largest underserved credit markets, with Egypt also on its expansion roadmap.
The company, which provides AI-driven microloans, working capital financing, and airtime advances to unbanked consumers and small businesses, says it sees significant opportunities in markets where access to formal credit remains limited.
Optasia facilitated approximately $6 billion in credit across 38 developing markets in 2025, according to Chief Executive Officer Salvador Anglada, who said the company has begun the early stages of entering Ethiopia and Egypt.
Ethiopia represents a particularly attractive market due to its low level of private sector lending. Credit to the private sector accounts for less than 10% of GDP, among the lowest levels globally, reflecting decades of state-led financing that prioritized public infrastructure over private enterprise.
The country has been gradually opening its financial sector following sweeping economic reforms. In 2024, Ethiopia approved legislation allowing foreign banks to enter the market for the first time in five decades, a move aimed at increasing competition, attracting international capital, and improving access to financial services.
Egypt faces a different but related challenge. While private sector credit stands at around 30% of GDP, a large share of bank lending is directed toward government securities and large corporations, leaving many small businesses and consumers underserved.
Optasia’s business model relies on artificial intelligence and mobile data to assess borrowers’ creditworthiness, allowing it to extend loans to customers with little or no formal credit history. The platform also generates insights into financial activity within Africa’s large informal economy, an area often overlooked by traditional financial institutions.
According to the company, its group-wide loan default rate currently stands at 1.2%, equivalent to approximately $60–70 million in loan losses, despite operating across multiple emerging markets. Anglada said he expects the default rate to remain stable as the company expands into larger, densely populated economies.
“Our borrowers maintain these micro-loans almost like a vital utility,” Anglada said. “They know that by repaying on time, they maintain access to liquidity and build a positive credit profile for the future.”
The company argues that its technology-driven lending model enables lower default rates than traditional unsecured lending. By comparison, unsecured lending portfolios at conventional banks in sub-Saharan Africa often record bad debt write-offs ranging between 10% and 15%.
Optasia’s planned entry comes as Ethiopia’s financial services sector undergoes rapid transformation, driven by banking liberalization, digital payments growth, fintech expansion, and regulatory reforms designed to improve financial inclusion and expand access to credit for households and businesses.
Source: Semafor
