There is an increase in the number of African tech companies who are expanding into Europe and the U.K. As a result, there is an increase in the amount of funding being given to them. However, access to finance remains a key constraint for many small businesses in this region. Therefore, as well as investing in new technologies and applications, many are also seeking out the services of existing financing providers.
Access to finance remains a growth constraint for small businesses
The financial industry has long recognized that access to finance remains a growth constraint for small businesses. The paper aims to examine the various factors that influence access to finance and their impact on competitive growth in Lesotho.
Access to finance is a major challenge for small and medium sized enterprises (SMEs) in most developing economies. Although lending to SMEs has increased, a lack of financing remains a persistent challenge. This article discusses recent developments in the small business finance sector and provides a review of the relevant literature.
Fintech Farm raises $7.4 million in seed funding
Fintech Farm, a UK-based fintech startup, has announced the closing of its $7.4 million seed funding round, reports TechCrunch. The company plans to use the money to launch new banks in eight emerging countries over the next two years.
Fintech Farm’s business model is to launch its app through partnerships with local traditional banks. It will then use credit cards to provide loans to customers. In each country, Fintech Farm will operate under a different name.
The company’s main product is a card that can be used as both a debit card and a credit card. Fintech Farm also offers a savings account and deposit options.
54gene layoffs 95 employees
54gene is one of the hottest biotech startups in Africa. The company was founded by Dr. Abasi Ene-Obong, a former cardiologist. It focuses on the African genomics research market. Since its launch, the company has secured over $45 million from several investors. This has helped fund its massive biobank with over 300,000 samples.
One of the biggest challenges faced by startup companies today is keeping afloat in a bear market. While the recession may have hit some hard, it has not sunk the startup industry. Companies are forced to slash costs in order to remain afloat. In fact, 54gene is among the latest African startups to have to reshape its workforce in the face of economic uncertainty.
Moove provides vehicle financing to drivers of ride-hailing platforms
Moove is a vehicle financing startup which targets drivers on ride-hailing platforms. It offers a new model of car leasing, which allows drivers to buy a car without having to pay any upfront costs. The company also offers vehicle insurance and regular maintenance. This type of vehicle financing has been made possible thanks to Moove’s alternative credit scoring system. Using this technology, borrowers can repay their loans using a percentage of their earnings.
As part of its global expansion, Moove recently launched operations in India. In the coming years, the fintech company aims to expand its services to seven more emerging markets.
Pylon is an infrastructure management platform
A startup out of Egypt, Pylon has launched a new smart metering solution. It provides an end to end software platform for enabling the deployment of smart grid technology. They do this by leveraging their technology and a set of enterprise design partners. Their software also helps to automate billing processes for utilities. The result is a more streamlined process that saves money and improves the environment.
Having worked in the metering business for many years, founder and CEO Ahmed Ashour knew a thing or two about what makes a meter. He decided to create a solution that would not only help to improve the water supply and efficiency of his company, but also reduce its carbon footprint.
Fintech Farm rebrands to Fin
The oh so oh so fintech company that is has rebranded its aforementioned nameplate. Now, the company has been around for more than a decade, but the rebrand has engendered newfound vigor. Notably, the company’s head of marketing has been dubbed the c-in-c-om (short for C-in-C-om), and there’s a lot of buzz amongst the ranks. It’s a good thing for the aforementioned hares, er, hounds, or hounds, that the company is open for business. So if you’re looking for a sexy tech shopper to hang with, you’ll have the company to thank for the experience.
Africa’s tech companies are expanding into Europe and the U.K.
Africa’s tech startup ecosystem is growing rapidly. However, there are a number of challenges. These challenges restrict the continent’s ability to scale and to access new markets. To overcome these challenges, governments need to put in place transformative measures.
First, African countries need to develop their own digital economic policies. Such policies can improve the business environment, reduce startup costs, and open up new markets. Similarly, governments can engage in mechanisms to promote collaboration. They can also democratise access to core information.
Finally
Second, government support is crucial for the development of a vibrant tech ecosystem. This includes fostering interaction among ecosystem actors. It is critical to bridge knowledge gaps and to reduce information asymmetries.
