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