Renew Capital has unveiled the Renew Venture Lab: The EmFi Series to reshape access to finance across the continent. This new initiative aims at identifying and supporting Africa’s most promising tech founders building the future of financial services.
The programme is designed to help startups develop or enhance systems that enable businesses to access credit, tackling one of Africa’s most persistent economic bottlenecks.
With small and medium-sized enterprises (SMEs) forming the backbone of the continent’s economy yet largely excluded from formal banking systems, Renew Capital is positioning the initiative as a catalyst to unlock a staggering US$330 billion untapped credit opportunity.
As co-CEO Matthew Davis puts it, “Africa’s most important financial story is not being written by banks… it’s being written by tech founders who know their small business customers better than traditional lenders.”
What is Renew Capital and What Does It Do?
Founded in 2012 by Matt and Laura Davis, Renew Capital operates as a pan-African investment firm that connects global capital to high-growth startups across the continent.
The firm manages investments on behalf of a diverse network that includes high-net-worth individuals (HNIs), foundations, and family offices, all seeking both financial returns and measurable social impact.
Renew Capital focuses on investing in tech-enabled companies, particularly those with the potential to solve systemic challenges in emerging markets. Its philosophy is rooted in a “founder-first” approach, meaning it prioritises the character, vision, and long-term potential of entrepreneurs over purely financial metrics.
This approach has shaped its growing footprint in Africa’s startup ecosystem, where trust in founders often determines the success of early-stage investments.
The launch of its latest fund in 2024 further points to Renew Capital’s long-term commitment to backing transformative ideas that can scale across the continent.
What to Know About Renew Venture Lab: The EmFi Series
The Renew Venture Lab: The EmFi Series is a targeted programme built to support startups working at the intersection of technology and financial inclusion. Specifically, it aims to help founders build or improve systems that allow their customers, particularly small businesses, to access credit.
The programme is grounded in a critical insight, that’s, while millions of African SMEs are excluded from traditional financial systems, they are not inherently high-risk. Instead, the problem lies in how their data is collected, analysed, and utilised.
Many of these businesses already generate valuable data through digital platforms, but that data remains underleveraged by conventional lenders.
Renew Capital believes that tech startups are uniquely positioned to bridge this gap. By embedding financial tools into their platforms, these companies can not only help businesses operate more efficiently but also create a “data footprint” that can be used to assess creditworthiness.
As Matthew Davis explains, “The EmFi Series exists to help those founders build new financial products for their customers, and to back the best of them with real capital.”
This underscores the programme’s dual role as both a capacity-building platform and an investment pipeline.
Africa’s $330 Billion Credit Opportunity
One of the most striking aspects of the initiative is the scale of the opportunity it seeks to unlock. Across Africa, SMEs account for 90 per cent of all private sector businesses, yet the overwhelming majority remain excluded from formal financial services.
In sub-Saharan Africa, fewer than one in five SMEs can access loans from traditional financial institutions.
This exclusion is not due to a lack of viability but rather a lack of accessible and usable data. Traditional banks often rely on rigid credit assessment models that fail to capture the realities of informal and semi-formal businesses.
The result is a massive financing gap, estimated at US$330 billion, that continues to constrain economic growth, job creation, and innovation across the continent. By enabling startups to harness data more effectively, Renew Capital is betting that this gap can be significantly reduced, if not entirely bridged.
How Technology and AI Are Changing Lending in Africa
A central pillar of the EmFi Series is the role of artificial intelligence (AI) in transforming how credit decisions are made. Unlike traditional lenders, tech-driven platforms can analyse a wide range of alternative data sources, including transaction histories, customer interactions, and operational patterns.
This data-driven approach allows for a more nuanced understanding of businesses, enabling lenders to make faster, fairer, and more accurate credit decisions. In essence, AI helps convert everyday business activities into actionable financial insights.
Renew Capital argues that one of the most impactful applications of AI in Africa lies in its ability to determine whether a business is “worthy of a loan” based on real behavioural data rather than outdated financial records.
This shift has the potential to democratise access to credit and empower millions of underserved entrepreneurs.
Step-by-Step Application Process
For founders interested in participating in the Renew Venture Lab: The EmFi Series, the application process is straightforward but time-sensitive. Below is a step-by-step guide:
Prepare Your Startup Profile
Founders should clearly articulate their product, target market, and how their solution leverages data to improve access to credit.
Demonstrate Traction or Potential
While early-stage ideas may be considered, having some level of user engagement, product validation, or data insights will strengthen the application.
Align with the Programme’s Focus
Applicants must show how their startup contributes to building or enhancing financial systems, particularly around credit access for SMEs.
Submit Application Before Deadline
All applications must be completed and submitted before April 30, as late entries may not be considered. Application portal can be accessed here.
Await Selection and Further Engagement
Selected startups will likely undergo further evaluation and may receive support, mentorship, and potential funding from Renew Capital.
Why This Matters for Africa’s Startup Ecosystem
The launch of the EmFi Series reflects a broader shift in Africa’s financial landscape, where technology, not traditional banking, is emerging as the primary driver of innovation.
By focusing on founders who already have deep relationships with their users, Renew Capital is effectively backing a new generation of “embedded finance” solutions.
These solutions integrate financial services directly into non-financial platforms, making it easier for businesses to access credit without navigating complex banking systems. This approach not only improves accessibility but also enhances efficiency and user experience.
Moreover, the initiative reinforces the idea that Africa’s development challenges can be addressed through locally driven innovation, supported by global capital and expertise.
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