Cape Town – UK-based financial technology company Zvilo Group plans to provide up to R10 billion in working capital to small and medium-sized enterprises (SMEs) in South Africa within three to five years, as it expands its operations across sub-Saharan Africa.
According to MyBroadband, citing Bloomberg, Zvilo has set an initial funding target of R2 billion, equivalent to about US$120 million, and aims to scale this to R10 billion as it seeks to make Africa its largest market by the end of the decade.
The company opened offices in South Africa in July 2026 and has already secured half of its initial R2 billion fundraising target.
“We are now in the business mode of deploying the capital,” Zvilo Africa chief executive Peter Maila told Bloomberg, according to MyBroadband.
Founded in 2018, Zvilo provides trade finance and working capital to businesses. It has disbursed more than US$501 million to approximately 3,900 businesses across 41 countries, including Kosovo, Serbia, North Macedonia and Turkey.
Maila said the company wanted sub-Saharan Africa to account for 60% of its loan book by 2030, with South Africa positioned as a key growth market.
“We want South Africa to be Zvilo’s biggest market by 2030,” he said.
Tackling the SME financing gap
Zvilo plans to target South Africa’s 20 largest listed companies, including mining groups, banks, insurers and supermarket chains, to finance suppliers awaiting payment for goods and services.
The company estimates that these large businesses owe suppliers between R5 billion and R20 billion each, with payments typically due within 30 to 60 days. SMEs account for a portion of these outstanding amounts but often need to borrow at high cost to cover operating expenses while waiting to be paid.
The strategy centres on invoice financing, under which Zvilo advances money against invoices and collects repayment from the large corporate buyer once the invoice is settled. The company charges between 1% and 2% of the invoice value, according to MyBroadband.
The funding initiative comes amid persistent concerns about access to finance and delayed payments for smaller businesses.
In a separate report, Business Day highlighted research by the South African Reserve Bank showing that technology-driven lending models are emerging as alternatives to traditional bank loans.
The Reserve Bank study found that revenue-based financing could improve access to credit and offer more flexible repayments for small businesses. It concluded that fintech innovations could help promote financial inclusion and support entrepreneurial growth.
Meanwhile, a 2026 report published by Bizcommunity, featuring South African lender Bridgement, cited National Treasury data showing that R12.4 billion in government invoices remained unpaid beyond 30 days. The report also highlighted how lengthy payment cycles can leave SMEs struggling to meet their financial obligations.
Zvilo intends to expand into nine African countries as it grows its global lending operations. Its longer-term target is to increase the number of businesses it supports to 15,000 by 2030, from nearly 4,000 currently.
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Compiled by Betha Madhomu
