iAfrica

Be Smart About South Africa

Ghanaian FinTech Startup Tackles the Credit Financing Value Gap

The historical challenge of SME financing in Africa is well-known and documented. Africa supports 400 companies with annual revenues of $1 billion—and they are, on average, both faster growing and more profitable than their global peers, according to McKinsey. Yet, the quantum of working capital deficit for SMEs is an issue of significant concern. In a report released by the global technology investment company Partech, African startups raised $2 billion in VC funding in 2019. When you review the financing details, you will notice a significant disparity that technology entrepreneurs have termed “the missing middle.” According to the reporters, of all 427 startups that raised funding throughout 2019, a mere 6% accounted for 83% of the total investments. Further, over 75% of the deals took place in three markets—Nigeria, Kenya, and South Africa. FXKudi recognizes this deficit as an opportunity to serve the SME market with innovative financial solutions. They realized in their research that the late payment for services and long invoice maturity, translating to significant cash flow deficits for small businesses, hampers short-term agility and long-term growth and investment. Seizing that opportunity, the team has launched a simple, SME-friendly money transfer service that serves as a reliable payment infrastructure, providing SMEs with secure, fast, and convenient payment options. FX Kudi makes it easy for Small and Medium Enterprises to send and receive money from anywhere in the world without hassle. You can easily create an account, connect your wallet or Mobile Money service, and start sending money.

SOURCE: TRUE AFRICA

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