From roadside kiosks to retail chain stores and unicorn tech start-ups, Africa is teeming with the spirit of entrepreneurship. Spurred by a young, tech-savvy population and a growing middle class, Africa has become a melting pot for innovation over the last decade, with MSMEs driving significant economic growth and development across the continent. However, despite accounting for over 90% of employment on the continent, African entrepreneurs still face a myriad of problems that inhibit their ability to build lasting businesses. Chief among these problems is a lack of access to adequate financing to grow and scale their businesses.
In developed countries, entrepreneurs who face finance challenges can often easily access credit to support their growth. Across Africa, however, access to credit is often a challenge for entrepreneurs, particularly for those operating in underserved communities. Financial institutions may be wary of lending to small businesses in these areas due to perceived higher…
