M-KOPA Extends ZAR 370 Million in Credit to South African Consumers

Kenyan asset financing company M-KOPA has extended more than ZAR 370 million (US$22.5 million) in credit to low-income consumers in South Africa since launching its services in 2023. The firm’s latest impact report highlights how flexible device financing is helping bridge the digital divide in a country where millions remain offline due to cost barriers.

According to the 2025 report, nearly half of M-KOPA’s 105,000 South African customers are women, who make up 49% of its user base. Among female customers, 36% are using a smartphone for the first time, compared with 24% of male users. The findings are based on a survey of 452 customers and sales agents conducted by Caribou.

The report reveals that 64% of users rely on their devices to generate income. About 35% reported increased earnings since acquiring their smartphones, while 39% said they could invest more in their children’s education. Overall, 84% of customers reported an improved quality of life, and 66% said they were better able to meet household financial goals.

In South Africa, where mobile phone ownership stands at 74% among adults—below the global average of 86%—cost remains the primary barrier for the remaining population. The Global Findex 2025 Digital Connectivity Tracker shows that 77% of those without a phone cite affordability as the main obstacle.

M-KOPA’s South Africa general manager, Cameron Perumal, said the company’s model offers “fair and flexible financing” to “everyday earners,” enabling them to unlock income, stability, and opportunity in a country facing high unemployment.

The company’s economic footprint extends beyond consumer credit. In 2024, M-KOPA contributed ZAR 24 million (US$1.45 million) in taxes and ZAR 155.5 million (US$9.46 million) in local procurement, while employing 155 people, 55% of them women.

Founded in 2010, M-KOPA has now served more than 7 million customers across Africa and extended over $2.5 billion in credit across Kenya, Uganda, Ghana, and South Africa. In Nigeria alone, the company has disbursed ₦231 billion (US$170.34 million).

Looking ahead, M-KOPA plans to expand nationwide in South Africa and introduce refurbished smartphones in 2026, aiming to make digital access even more affordable for low-income consumers still priced out of the digital economy.

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