Africa embracing alternative finance

This is one of a growing number of options becoming available to African entrepreneurs.

The Emerging World

A majority of businesses in Sub-Sahara Africa are small and medium-sized enterprises, also known as SME’s, and represent 90% of all businesses and produce 80% of all jobs throughout the continent.  Most of these enterprises lack access to finance stunting growth and business development.  The International Finance Corporation, IFC, estimates that up to 84% of SME’s in Africa struggle to get adequate financing from formal investment channels such as banks and other financial institutions, resulting in a credit financing gap of $140-170 billion annually. This has created a market need for alternative sources of financing.  Alternative financing platforms have stepped up to meet this need using crowdfunding and peer-to-peer (P2P) lending.

Piattaforme-di-crowdfunding-in-Africa

Let me first start out by explaining exactly what crowdfunding is. Crowdfunding raises capital for a project or a venture by collecting small amounts of money from a large group of people.  There are different types of crowdfunding opportunities. …

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One thought on “Africa embracing alternative finance

  1. […] Investors such as Abraaj, Capri Africa, and Sarona Asset Management were represented. In addition, several important players in the African financial ecosystem were in attendance. These include PWC’s Mauritius office, IGD Leaders and PAN Diaspora Capital Management. […]

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