How debt will drive the future of African startups
- Obsolete regulations and strict banking rules hinder Francophone African startups from obtaining funding.
- A fintech passport agreement between Ghana and Rwanda could facilitate cross-border growth.
- African startups raised over $2 billion annually since 2021, with venture funding growing by over 1000% from 2015 to 2021.
The reliance on equity financing among startups in Francophone Africa is unsustainable in the long run. There is a pressing need for innovative debt financing solutions that can provide the necessary capital for growth while preserving ownership. Stakeholders, including banks and investors, must collaborate to create a more conducive environment for startups to thrive.
