Accessing loans for small businesses in Africa is an uphill task and in Zambia, only 8.8% of micro SMEs have access to a loan or line of credit due to high collateral requirements and an often non-existent credit history.
Small businesses in Africa’s mammoth informal economy are subject to endemic financial exclusion, largely due to being a predominantly cash economy with close to little financial records kept by the retailers. This has traditionally made it difficult for the credit-worthiness of these businesses to to be fairly calculated but technology is gradually helping to solve this huge problem.
It’s the final month of Q2 and the African tech ecosystem keeps buzzing with innovators making the kind of change we want to see. This month we are taking you on another journey across the African tech ecosystem to discuss the most talked about stories from May, featuring companies such as Chipper Cash, MTN, M-Pesa and even the South African government. Here’s the roundup.