In a country where millions remain excluded from traditional banking services, micro-lending is emerging as a powerful tool for financial inclusion. At a recent the 2nd Annual Africa Financial Inclusion Summit & Expo 2025  Held in Johannesburg, South Africa  recently Included key voices from the micro-finance sector highlighted the critical role of responsible micro-lending in empowering underserved communities and driving economic growth.

Brett Caminsky, Director at Atlas Finance, emphasized the company’s commitment to providing fast and efficient loans to South Africans, particularly those in low to medium-income brackets.

“Our competitive advantage lies in the convenience we bring to communities,” said Caminsky. “With over 280 branches nationwide and more than 30 years of experience, we ensure that financial support is accessible, timely, and aligned with our customers’ needs.”

Atlas Finance’s customer-centric approach includes rapid loan disbursement, flexible repayment terms, and a strong focus on financial education. This model not only bridges the financial gap but also promotes responsible borrowing and long-term financial stability.

Leonie van Pletzen, CEO of MicroFinance South Africa (MFSA), addressed the complex issue of informal lending, commonly referred to as “Mashonisa or loan sharks”. While acknowledging the risks, van Pletzen advocated for a more inclusive approach.

“We must recognize that informal lenders are serving parts of the country where no banks or registered microlenders operate—especially in remote areas,” she talked about  Rather than exclude them, we should work with them to bring them into the regulatory fold. This will help protect consumers and extend financial services to all corners of South Africa.

Van Pletzen stressed the importance of collaboration between regulators, such as the National Credit Regulator (NCR), and industry bodies like MFSA to ensure ethical lending practices and consumer protection.

Microlending is not just about access to credit—it’s about empowerment. Financial education is a cornerstone of sustainable inclusion, helping consumers make informed decisions about budgeting, saving, and debt management.

Technology also plays a pivotal role. Digital platforms streamline loan applications and use data analytics to assess creditworthiness beyond traditional metrics, making financial services more inclusive and efficient.

When executed responsibly, micro-lending can be a transformative force in South Africa’s economic landscape. By fostering trust, promoting transparency, and prioritizing consumer education, registered micro-lenders are equipping underserved communities with the tools to achieve financial stability and long-term empowerment.