Let's crunch some numbers and shine a spotlight on the issue that Ubuso Capital is tackling head-on in East Africa. Here's a roundup of stats and data that give you a bird's eye view of the problem:
-
Limited Access to Finance
-
Credit Gap
-
Informal Financing
-
Entrepreneurial Potential
-
Economic Impact
-
Startup Challenges
-
Gender Disparities
-
Impact on Sustainable Development
Limited Access to Finance
It’s tough for businesses to secure funding when more than 66% of Sub-Saharan Africa’s population lacks access to formal financial services, per the World Bank.
Credit Gap
A staggering credit gap of $331 billion for micro, small, and medium-sized enterprises (MSMEs) in Africa, as estimated by the African Development Bank, underlines the massive unmet financial needs.
Informal Financing
Informal financing sources, such as loans from family and friends, are often the only option for up to 80% of businesses in Sub-Saharan Africa, according to the International Finance Corporation (IFC).
Entrepreneurial Potential
Africa boasts an impressive 22% of the working-age population engaged in early-stage entrepreneurial activities, as reported by the Global Entrepreneurship Monitor (GEM).
Economic Impact
Improving access to finance for MSMEs could contribute significantly to job creation, poverty reduction, and economic development in the region, per the African Development Bank.
Startup Challenges
Early-stage funding is a significant obstacle for African startups, as highlighted by a study from the World Economic Forum.
Gender Disparities
Women entrepreneurs in Africa face additional challenges in accessing formal financing compared to their male counterparts, as reported by the African Development Bank.
Impact on Sustainable Development
Access to finance plays a crucial role in achieving the United Nations Sustainable Development Goals (SDGs) in Africa, including poverty reduction, economic growth, and clean energy.