What happens when a small business owner in South Africa wants a loan in order to expand their business? Until recently, geographical remoteness and restrictive economical and political conditions meant it was too expensive for local South African banks to lend startups the money they need to grow. But thanks to the emergence of social lending, small business owners can now get access to these vital funds.

Africa Internet Holding (AIH) recently unveiled the launch of social lenders Lendico - a marketplace for peer-to-peer loans - in South Africa. As a digital alternative to banks, investors are able to directly fund loans to private individuals directly, while its innovative "branch-free" model allows both investors and borrowers to benefit from attractive rates.

Following on from its launch in Germany under the leadership of Dr. Clemens Paschke and three others, the social lending initiative has grown across Europe, before finally building a stronghold in one of the African continent's most vibrant economies. And by offering the level of interest rates that traditional banks would no longer consider, Lendico is likely to prove to be an invaluable tool in any South African David's arsenal. We can't wait to see the results.