South African startup Tetafi is transforming financial accessibility for the country’s informal businesses by offering a user-friendly financial management platform directly through WhatsApp. Founded by Roman Gula in 2023, Tetafi leverages AI to simplify transaction tracking and connect users with essential financial products, including loans and buy-now-pay-later (BNPL) services, without requiring business formalisation. This innovation is poised to bridge critical gaps in financial inclusion among South Africa’s 3.3 million informal businesses.
Tetafi’s solution addresses a pressing issue: many informal businesses face significant barriers to accessing capital. Statistics show that 15 percent of informal businesses in South Africa are financially excluded, while half report funding as their primary challenge. Tetafi’s conversational interface, delivered via WhatsApp—a platform used by 94 percent of South Africans—offers a familiar and accessible way for these businesses to manage their finances without the need for extensive documentation or formal records.
Gula was inspired to develop Tetafi after witnessing the struggles of informal businesses in Khayelitsha, a township in Cape Town. Reflecting on his experiences, Gula shared, “I worked with a business operating for over five years that still struggled to secure funding due to a lack of financial records. Many informal entrepreneurs are excluded from traditional financial systems simply because they lack formal documentation. We launched Tetafi to bridge that gap in financial accessibility.”
Tetafi’s potential has already been recognised, securing grant funding from the Tony Elumelu Foundation to develop its initial platform. Now onboarding its first users, Tetafi has attracted considerable interest from informal businesses keen on improving financial management and gaining access to new funding avenues. Gula highlights the role of community input, noting, “Interest from local entrepreneurs and organisations supporting township businesses has been invaluable. Their feedback is helping us ensure our platform provides real, lasting value.”
The startup’s focus on the South African market is deliberate, given the high number of informal businesses in need of financial inclusion. By participating in the UCT GSB e-Track programme, Tetafi is also exploring additional funding sources to expand its platform, with long-term goals of scaling across African countries that share similar financial access challenges. “Our priority is to establish a robust presence in South Africa, especially in township communities, before expanding further. There’s significant potential for Tetafi to impact other African markets, and we’re positioning for that eventual growth,” Gula said.
Tetafi’s business model is built on a blend of subscription packages for users and commissions on facilitated financial products. However, the journey to building a trusted brand hasn’t been without its challenges. Gula acknowledges that establishing credibility with both informal businesses and financial partners has required substantial effort. “Many informal business owners are sceptical of new platforms. We’ve had to demonstrate Tetafi’s tangible value. On the partner side, convincing lenders to consider informal businesses as viable clients remains a hurdle, as they’re often seen as high-risk. We’re overcoming these challenges by showcasing our model’s resilience and the potential impact of supporting this sector.”
Tetafi’s work reflects a broader movement to support South Africa’s informal sector, providing tools that empower small business owners to better manage their finances, gain access to funding, and ultimately grow. The startup’s innovative use of WhatsApp underscores a keen understanding of user habits in South Africa, offering a promising approach to reshaping financial inclusion for the country’s informal economy.
