Overview
Baobab Group provides financial services to half a million small businesses in seven countries on the African continent, broadening access to finance among those underserved by traditional banks. The platform focuses on microfinance and business lending rather than traditional payment processing.
Target Users:
- Small and medium enterprises (SMEs) in Africa
- Financially underserved entrepreneurs
- Micro-businesses seeking working capital
- Users across 16 Nigerian states and other African regions
Primary Purpose: Baobab Group’s mission is to drive financial inclusion by providing accessible loans and financial services to African entrepreneurs who lack access to traditional banking.
Key Features
Micro-loans:
Loans up to €10,000 with repayment schedules under 12 months
SME Loans
Larger loans up to €300,000 with terms up to 60 months
Mobile Money Integration
Transfer funds to and from Baobab accounts via mobile app
TAKA Loan Repayment
24/7 loan repayment feature through the mobile app
Current Accounts
Business banking services for SMEs
Multi-country Operations
Services across 7 African countries
Pros & Cons
Advantages
- Serves underbanked African markets
- Quick loan approval process
- Multiple loan options available
- Mobile money integration
- 24/7 digital services
Limitations
- Limited to African markets only
- App functionality issues reported by users
- High interest rates compared to traditional banks
- Limited payment processing features
- Account creation difficulties
Security Features
Regulatory Compliance: Licensed financial services provider in operating countries
KYC Procedures: Know Your Customer verification for loan applications
Mobile Security: App-based authentication and secure login protocols
Data Protection: Standard encryption for financial transactions
Pricing & Fees
| Service | Fee | Details |
|---|---|---|
| Micro-loans (up to €10,000) | 2.5% - 8% monthly | Short-term business loans, up to 12 months |
| SME Loans (up to €300,000) | 1.5% - 6% monthly | Longer-term financing, up to 60 months |
| Current Account Maintenance | Varies by country | Standard business banking fees apply |
| Mobile Money Transfers | 1% - 3% per transaction | Funds transfer via mobile app |
| Loan Processing Fee | 1% - 2% of loan amount | One-time fee at loan origination |
Getting Started
Detailed Ratings
Final Verdict
Baobab Group serves a crucial role in African financial inclusion, particularly for underserved entrepreneurs. While the platform excels in loan accessibility and multi-country coverage, technical issues with the mobile app and high interest rates present challenges for users.