Exclusive Interview with Tamu Dutuma,
Head of Strategy & Transformation,
Absa Regional Operations (ARO) – Technology
SMEs drive nearly half of sub-Saharan Africa’s GDP. From your vantage point, what’s the biggest untapped opportunity in unlocking SME growth on the continent?
One of the biggest untapped opportunities for SME growth in Africa lies in helping small businesses connect to regional and global value chains. Right now, many SMEs operate only within their local communities, missing out on the broader market potential. But with initiatives like the African Continental Free Trade Area (AfCFTA), Africa’s markets are becoming more integrated, making cross-border trade more accessible than ever.
To unlock this opportunity, we need to make it easier for SMEs to trade across borders by simplifying payments, streamlining logistics, whilst making working capital solutions and funding available and reducing compliance barriers. When small businesses can move goods and services more easily between countries, they can scale faster, reach new customers, and become competitive players across the continent and beyond.
How do you see technology changing the role SMEs play in Africa’s economic transformation?
Technology is a powerful equaliser for SMEs in Africa. In the past, small businesses struggled to compete with large corporations due to a lack of financial access, limited reach, resources, and operational capacity. Today, digital tools are helping level the playing field. Mobile payments, for example, now allow micro-enterprises to trade across borders – a challenge not so long ago. SMEs can reach and transact with their customers much more easily and accept payments seamlessly without needing to invest in infrastructure. Mobile merchant acquiring and payment acceptance applications are giving SMEs access to tools that were once only available to big companies. Data analytics also help small retailers better understand their customers and make smarter decisions.
What’s truly transformative is how technology increases visibility. Many SMEs operate informally and remain invisible to banks, investors, and global buyers. With digital platforms, these businesses can formalise, build a digital footprint, and access new opportunities – from financing to international markets. This shift means SMEs are no longer just supporting the economy, they are actively shaping Africa’s digital and economic future.
Beyond access to capital, what systemic or structural challenges hold back African entrepreneurs and what kinds of interventions really move the needle?
Beyond access to capital, African entrepreneurs face several structural challenges that can limit their growth. Many lack strong networks – whether with investors, corporates, or peers. Others struggle to find technical support to improve their products or mentorship to help them navigate the journey of scaling their businesses. Even promising ideas often stall at the proof-of-concept stage because the right guidance or supportive ecosystem isn’t in place.
This is where interventions like the MEST Africa Challenge 2025 really move the needle. They go beyond funding by creating an environment where startups can access mentorship, networks, and market exposure. These are the ingredients that help young businesses grow sustainably, whether within their country or across markets.
What lessons has Absa learned from working with SMEs and startups that other corporates should pay attention to?
One of our biggest lessons is that innovation must be anchored in core business strategy, not treated as a side project. When Absa first launched dedicated innovation hubs, we saw that while they encouraged exploration, their impact was limited without full business buy-in. Startups thrive when their solutions are embedded in real business challenges, not isolated in the “innovation theatre.”
Business buy-in and prioritisation are critical. For partnerships to succeed, operating units, those accountable for delivery and P&L, need to be involved from the start. Without this, even strong ideas stall at pilot stage due to lack of integration and clear paths to scale.
Strategic focus also matters. Chasing broad, trendy themes creates noise but slows execution. Real traction comes when corporates and startups co-create well-defined opportunity areas that align with real customer needs and revenue goals.
The biggest lesson is that partnership, not patronage, unlocks value. Startups do not want to be “supported” in a paternalistic sense; they want to co-create. They thrive when corporates treat them as equal partners, open distribution networks and infrastructure, share insights and provide platforms for scale.
How does the MEST Africa Challenge go beyond being a pitch competition to act as a real catalyst for digital transformation and ecosystem building?
Pitch competitions can sometimes be transactional – one winner, one cheque and a spotlight moment. The MEST Africa Challenge 2025 is designed to be much more. It connects startups and FinTechs with mentors, investors, and corporates across markets, creating relationships that last beyond the pitch.
Startups gain regional visibility and practical support to scale beyond their home countries. By focusing on real business challenges and providing access to networks and market opportunities, the Challenge helps turn promising ideas into sustainable ventures. Its ecosystem approach ensures that innovation is nurtured, not just showcased.
Why is it important for corporates like Absa to engage at the early-stage startup level, rather than only with more established businesses?
Small and medium enterprises (SMEs) are the backbone of Africa’s economy. Research shows they account for c.95% of all registered businesses and contribute around 50% of sub-Saharan Africa’s GDP. Yet, many SMEs struggle to survive beyond the early stages due to lack of access to the right resources, mentorship, and networks needed to scale.
Engaging with startups and early-stage SMEs ensures that these critical players are supported while they are growing, helping them overcome early challenges and increasing their chances of long-term success. By providing guidance, partnerships, and access to markets early on, corporates like Absa not only help SMEs thrive but also strengthen the broader economy. Supporting SMEs at the start is an investment in the continent’s economic resilience and future growth.
Which innovation trends (Insurtech, payments, Agri-Tech, cross-border trade) do you think will most reshape African markets in the next five years?
Payments and cross-border trade will be among the most transformative trends for African markets. Digital payment solutions like MobiTap, an Absa product, which has been launched in several of our African markets, are already a game-changer for SMEs, enabling them to receive payments quickly and easily using a mobile phone. This not only simplifies transactions but also brings previously unbanked businesses into the formal financial system, supporting financial inclusion.
Solving the challenges of cross-border payments is equally critical. SMEs often face high costs, slow transfers, and regulatory hurdles when trading across borders. Innovations that make these transactions seamless and affordable unlock access to larger markets, stimulate trade, and allow African businesses to compete regionally. Over the next five years, the combination of mobile payments, digital wallets like MobiTap, and efficient cross-border solutions will reshape how African businesses operate, expand, and drive economic growth.
Can you share examples of how startups are addressing real customer pain points in ways that larger institutions may struggle to?
Fintechs are driving some of the most innovative solutions in Africa, tackling pressing customer challenges such as financial inclusion, digital literacy, and employment creation. According to McKinsey, fintech revenues could reach up to USD 47 billion by 2028, reflecting not only market growth but also increased collaboration between disruptors and banks. By leveraging their nimbleness and each other’s strengths, they deliver more streamlined services, expand offerings, and improve value propositions for both existing customers and underserved communities.
At Absa, we have actively collaborated with fintechs to unlock new opportunities and expand access. One example is our partnership with Timiza, Absa’s mobile banking platform in Kenya, which allows users, including individuals and small businesses, to access instant loans, save, pay bills, buy airtime, and transfer money directly from their mobile phones. Timiza has been instrumental in expanding financial inclusion and helping SMEs manage cash flow and grow their businesses.
These types of collaborations show how startups and agile digital platforms can address customer pain points that larger institutions may struggle with alone.
What does effective ecosystem collaboration between banks, startups, and accelerators look like in practice?
Effective collaboration happens when everyone plays to their strengths. Banks provide capital, trust, and regulatory know-how; startups bring innovation, speed, and close customer understanding; and accelerators offer mentorship, structure, and talent. In practice, this means banks open APIs and strategically provision balance sheet to partner with startups, accelerators select and support promising entrepreneurs, and startups co-create solutions with corporates.
Looking ahead, what role do you see Absa playing in shaping Africa’s digital economy over the next decade?
Our goal is to be a digitally powered business, transforming our technology with our customers at the centre, to empower Africa’s future. It’s about making payments easier, driving financial inclusion, and delivering seamless digital experiences. Through the MEST Africa Challenge 2025, we aim to…
