Browsing: MSMEs

Digital SME marketplace  Solv Kenya In SCF Partnership With MSMEs and Standard Chartered bank to provide micro, small, and medium-sized enterprises (MSMEs) with access to supply chain financing at competitive interest rates.

On the e-commerce platform, buyers and sellers will be able to improve the efficiency of their supply chains thanks to the partnership, which will last for three months.

  • Solv Kenya has partnered with Standard Chartered to offer MSMEs affordable supply chain financing
  • The three-month partnership will help buyers and merchants to increase their supply efficiency on the e-commerce site
  • As part of the agreement, over 700 micro, small, and medium-sized enterprises (MSMEs) will have the opportunity to network with representatives from various financial institutions

During the first quarter of the trial period, Solv collaborated with eight multinational manufacturing and trading organisations, over 700 micro, small, and medium-sized enterprises (MSMEs), and three financial partners to co-design an invoice financing …

  • The most significant restriction to SMEs thriving in Africa is access to capital, with a massive gap in funding widening globally between these enterprises and large firms
  • IFC notes that the global gap in funding between SMEs and big companies is around US$5.2 trillion
  • Small and Medium Enterprises represent about 90 per cent of businesses and more than 50 per cent of employment worldwide

Micro, small and medium enterprises (MSMEs) remarkably contribute to the socio-economic infrastructure in both developed and developing countries, especially in the transition from planned to market-oriented economies. The most significant restriction to the thriving of SMEs, in Africa specifically, is the access to capital, with a massive gap in funding widening globally between these enterprises and large firms.

Small and Medium Enterprises are vigorously turning to alternative sources of funding. The world is witnessing an indispensable need for a collaborative effort to help SMEs address the …

  • By sensing mild changes in financial well-being, the EWS gives lenders the opportunity to intervene.
  • The EWS helps lenders improve their lending decisions and risk management.
  • The market monitoring tool can be shared with regulators and digital lenders across Kenya.

4G Capital has partnered with the Consultative Group to Assist the Poor (“CGAP”) on developing a new tool that identifies financial stress and helps protect low-income consumers against over-indebtedness.

The company offers technology-driven financial inclusion for MSMEs across Kenya and Uganda and together with Social Performance Solutions (“SPS”), a consultancy firm supporting social impact organisations, 4G Capital and CGAP co-created a pilot scheme that researched and tested a client financial stress Early Warning System (‘EWS’).

By incorporating financial stress monitoring into risk management processes, EWS enables an early assessment of and response to borrowers experiencing financial stress to help reduce the risk of over-indebtedness.

Read: Zamara introduces Kenya’s first Pension

  • MSMEs account for 90 per cent of businesses and 80 per cent of employment in East Africa.
  • EAC Partner States still have a critical role in enabling MSMEs growth to ensure long term sustainability and recovery.
  • Partner States should encourage research and development as requisites for innovation and growth.

The EAC Secretary General Dr. Peter Mathuki says that Micro, Small and Medium Enterprises (MSMEs) play a crucial role in the economic development of East African countries.

MSMEs account for 90 per cent of businesses and 80 per cent of employment, especially among youth and women.

Speaking during the official opening of the 21st MSMEs Trade Fair at Rock City Grounds, Mwanza, United Republic of Tanzania, Dr. Mathuki reiterated that EAC Partner States still have a critical role in enabling MSMEs growth to ensure long term sustainability and recovery by promoting programmes that prioritise MSMEs to spur demand for quality …

  • Organic Diaries Limited, Tropical Lush Limited, Meditrust Healthcare Services and Organic Fields are some of the winners of the KSh 33 million grant fund
  • The grant funds are being issued under the Accelerate Program which aims to position Kenyan businesses for success while addressing the skills gap in the country 
  • So far, the program has managed to reach over 850 small businesses, providing them with both financial and non-financial support

Kenya’s Stanbic Bank has unveiled the 7 recipients of a new KSh 33 million grant fund.

Through its Accelerate Programme, the bank signed Stanbic Foundation and United States African Development Foundation (USADF) to hand over the funding to the businesses.

The Fund’s recipients, who were selected out of over 500 applicants across the country, include Organic Diaries Limited, Tropical Lush Limited and Meditrust Healthcare Services.

Others are Organic Fields, Tarakwo Diaries Company Limited and Tovuti Group who won KSh 5 …

  • Mastercard Impact Fund has committed a initial philanthropic investment of $25 million 
  • The company said small business owners are currently in need of innovative solutions
  • It builds on Mastercard’s $250 million commitment to support small businesses’ financial security made last year

Mastercard, through the Center for Inclusive Growth, has launched a new program dubbed ‘Strive’, to strengthen the financial resilience of small businesses as well as support their recovery and growth.

In a statement, the company said the initiative, which is global, will help micro and small enterprises transition to using digital platforms and processes.

The technology company said the launch of the initiative comes at a time when there has been a rapid shift towards digital services, which was necessitated by the coronavirus pandemic.

An initial philanthropic investment of $25 million from the Mastercard Impact Fund has been committed to the initiative whose aim is to help more than …

Invest Africa has launched a new programme of support for over 500 African MSMEs.

In a statement, the company, which is a trade and investment platform for African markets, says it will be hosting the Next Generation Africa Forum to connect MSMEs across the Continent.

The forum will take place virtually on 16th September using a digital platform, with practical support from leading banks, VCs, multi-national tech companies and incubators, including Google, KPMG, DHL, Aon and 4G Capital.

“MSMEs form the backbone of Africa’s economies and are the engine of the region’s job creation drive, accounting for 70 percent of employment,” the company said in a statement.

The firm also noted that with a high proportion of informal enterprises, many of Africa’s MSMEs, which already faced significant challenges, have been hit hard by the Covid-19 pandemic.

Addressing the structural difficulties that small businesses in Africa face, will therefore be essential …

The African Union Development Agency NEPAD (AUDA-NEPAD) and the Ecobank Group have partnered in the 100,000 Micro, Small and Medium Enterprises (MSMEs) Initiative.

This initiative is meant to help reposition MSME businesses on the continent, in order to rebuild and recover from the economic shock caused by Covid-19.

AUDA-NEPAD launched the 100,000 MSMEs Programme to accelerate African economic transformation, provide the needed skills, and build resilience against the economic shock triggered by the global pandemic.

Read: Redefining the health system in Africa after the pandemic

The ‘100 000 MSMEs’ initiative seeks to build the capacity of 1,000,000 enterprises in Africa through entrepreneurial and business training to improve access to finance and new markets while establishing networks for support and incubation to bolster their success.

“Across the globe, MSMEs are the biggest and the best engine of innovation, social transformation and economic development and growth. AUDA-NEPAD is deeply convinced that Africa …

Over 200 local businesses in Kenya have applied for Covid-19 relief loans under a programme run by the Kenya Private Sector Alliance (KEPSA) and Mastercard Foundation.

The first set of beneficiaries have received the loans and several more are under review, pending disbursement of funds.

The Mastercard Foundation Covid-19 Recovery and Resilience Programme for micro, small and medium enterprises (MSMEs) aims to benefit 400 MSMEs through the partnership with KEPSA, whose operations have been adversely affected by the Covid-19 pandemic.

Read: Kenya: Women own half the 1.3 million MSMEs

Beneficiaries, who include women- and youth-owned enterprises, receive interest-free loans ranging between Kshs 100,000 (US$ 1000) to Kshs 1.5 million without any collateral, and payable within six months.

The business must be a KEPSA member either directly or through a member association and must have been in existence for at least six months to be considered eligible to apply.

“We are …

Financial inclusion in Africa

Last month, Mastercard announced a partnership with Samsung, Airtel Africa and Asante Financial Services Group to launch a Pay-on-Demand payments platform and drive the digital economy across Africa.

By enabling digital access to everyday products and services for under-served consumers and micro, small and medium enterprises (MSMEs), the continent could experience positive economic growth covering even the poorest which has been elusive for decades.

The International Finance Corporation (IFC) notes that the launch and growth of digital financial services has led to an unprecedented increase in the number of people enjoying access to formal financial services.

Read: Tanzania shines for financial inclusion in Africa

Today, Africa has more digital financial services deployments than any other region in the world, with almost half of the nearly 700 million individual users worldwide.

Mobile money solutions and agent banking remain the most preferred since they now offer affordable, instant, …