Hervest: Empowering African Women Through Fintech

Addressing the Gender Finance Gap in Africa: The HerVest Story

Solape Akinpelu, drawing from her extensive experience in marketing within the financial services sector, identified a significant issue: a strikingly low rate of financial service adoption among women throughout Nigeria and the broader African continent.

Akinpelu observed firsthand the financial challenges faced by women in her community. Many lacked the knowledge to make informed financial decisions, and were unaware of opportunities to improve their economic standing.

Focus on Rural Women and Agricultural Workers

The disparity was found to be particularly pronounced among women residing in rural areas, specifically those engaged in agricultural work.

In August 2020, Akinpelu, alongside Yomi Ogunleye, established HerVest, a Lagos, Nigeria-based fintech startup. The company is dedicated to serving underserved women across Africa, adopting a gender-focused approach.

Bridging the $42 Billion Gender Finance Gap

HerVest’s primary objective is to close the $42 billion gap in financial access for women, both in urban centers and remote regions, with a specific emphasis on those involved in agriculture.

The startup delivers access to essential financial tools, including savings accounts, fund transfers, impact investing opportunities, and valuable financial insights, specifically tailored for women who have historically been excluded. It also provides blended finance solutions to smallholder female farmers in underserved African communities.

Essentially, HerVest facilitates investment in female farmers, enabling investors to realize a return while simultaneously empowering farmers with financial literacy, education, and previously unavailable opportunities.

A Commitment to Financial Inclusion

“Our goal is to tackle the gender inequality in Africa by extending access to savings, investment, and credit to women, irrespective of their background or location,” Akinpelu stated.

Currently, HerVest’s platform supports over 4,000 women, just over a year after its inception.

Funding and Future Expansion

Earlier this year, the company secured $100,000 in funding through a friends and family round. These funds will be allocated to expanding the team, enhancing the digital infrastructure, and intensifying marketing initiatives.

HerVest operates primarily as a distributed company, maintaining a flexible work structure.

Prior to founding HerVest, Akinpelu served as the head of marketing for Mersitem, a capital market conglomerate, and held various marketing positions within other financial institutions.

These experiences underscored the critical need for increased financial access for women. Akinpelu believes the COVID-19 pandemic and subsequent economic downturn have further highlighted the vulnerability of women with limited financial resources.

“This situation reinforces the importance of financial inclusion as a means for women to recover from the crisis and build long-term financial resilience,” she explained to TechCrunch.

Pan-African Vision

While initially focused on Nigeria, home to over 57 million working women, HerVest intends to extend its platform to other West and East African countries in 2022.

“The issue we are addressing is a pan-African gender finance gap, not solely a Nigerian one,” Akinpelu clarified.

HerVest utilizes referrals, partnerships with cooperatives, and social media to promote its services. The company offers a live app for both iOS and Android, and has recently launched a desktop application.

Empowering Female Farmers Through Cooperative Investment

According to the company’s website, cooperative members can achieve annualized returns of up to 25% while simultaneously bolstering the financial capabilities of female farmers through access to capital, training, and market opportunities.

This model involves women with disposable income pooling their funds as impact investments, providing credit to smallholder female farmers through a cooperative structure.

“Furthermore, women are also able to establish automated savings plans for their personal goals. We envision ourselves as an ‘inclusive neobank for women,’” Akinpelu shared with TechCrunch. “To ensure accountability and transparency, our funds are held in trust by FBNQuest Trustees Limited.”

By investing in these women, HerVest aims to foster growth in areas such as specific crop cultivation, grain banking, livestock management, and the delivery of digitized extension services to female small-scale farmers in rural communities.