Somaliland Startup Brings Digital Bookkeeping Platform to Ethiopia

Hafide, a digital bookkeeping platform based in Somaliland, has expanded to Ethiopia. By launching in Ethiopia, the company aims to streamline financial management and empower SMEs with tools to drive economic growth, tapping into a market where traditional bookkeeping remains prevalent. Currently free to use, the platform’s founders plan to implement a subscription-based model after establishing a significant user base.

Founded in June 2023 by three friends, Sulekha Yusuf (CEO), Jimale Abdi (CTO), and Muhiyadin Ismail (CFO), Hafide is designed to facilitate the digitization of business processes across Africa, enabling users to manage their finances digitally and transition away from traditional pen-and-paper accounting methods.

“Businesses can use the platform to record their transactions, including income, expenses, and debts,” says Jimale Abdi, cofounder and CTO of the platform.

The journey of Hafide began with two friends’ mutual interest. Jimale and Muhiyadin first met at Abaarso Tech University in 2016. After graduating in 2019, their shared curiosity for technology led them to co-found Tiriig Technology, a software development company. That entrepreneurial spirit grew even more elastic when they later met Sulekha during a vacation in Hargeisa. “Our paths crossed with Ayan while she was on vacation in Hargeisa, and together we launched Silicon Nomads, an initiative designed to help youth enter the tech industry,” Jimale told Shega.

In 2022, following the Waheen Market fire in Hargeisa, which destroyed countless small businesses, resulting in $2 billion in damages, the trio decided to co-found Hafide.  “Many entrepreneurs lost not only their livelihoods but also their financial records, as they relied heavily on traditional pen-and-paper bookkeeping methods,” says the co-founder.

"Hafide," meaning "Safeguard," in their native language captures the platform's core purpose, according to Jimale, which is to protect business data from unforeseen disasters.  “Waheen’s harrowing tragedy inspired us to create a digital solution that allows businesses to safeguard their financial information and thrive in an increasingly digital world,” he stressed.

The development of Hafide took around eight months, with initial funding sourced from the founders themselves. Currently, the platform boasts over 2,400 users and is accessible in four languages: English, Amharic, Somali, and Swahili.

The mobile app is specifically designed to simplify financial management for small businesses, allowing users to digitally record credits and debits for accurate financial tracking. With just a few clicks, they can generate detailed reports on cash flow, showcasing income and expenses daily or monthly. The platform also provides support resources and customer service to assist users with any query or issues they may encounter.

By replacing outdated bookkeeping methods with modern technology, Hafide aims to become a leading bookkeeping solution for SMEs across Africa.

This digital bookkeeping company is also one of the 42 FinTech startups selected and currently participating in the UNDP Timbuktoo Fintech Accelerator Program, a pan-African initiative launched by the United Nations Development Programme (UNDP).

After intensive training, including a week-long bootcamp in Lagos, Nigeria, and a month-long virtual program, Hafide is gearing up for the final pitch next week. A successful pitch could secure $25,000 in equity-free funding, and perhaps the team will have a chance to finally pin down the biggest challenge in their startup journey, fundraising.