Receivables Finance: Innovative approaches to unlocking Access to Finance for African SMEs

Restricted access to finance for SMEs remains a roadblock to growth for economies worldwide. Africa remains no different, as SMEs typically provide 50% or more of the workforce in most countries, yet the SME “funding gap” perpetually totals in the billions of dollars. SMEs are continually frustrated by raising capital from traditional funding channels such as banks, who still typically require traditional (and expensive) information sources such as audited financial statements that few SMEs have a consistent need for or collateral security that few SMEs have access to. The current pandemic-induced economic crisis is accentuating this situation, with SME demand […]

South Africa is poised to ease lockdown restrictions

South Africa is poised to enter a phase of normality under “advanced” level 3 of the national lockdown as announced by the President of South Africa, Cyril Ramaphosa on the 17th of June 2020. South Africa entered level 3 on June 1, 2020. The “advanced” level 3 is a further relaxation of the lockdown. Most businesses will be returning to normal trading at this level. Following consultative discussions with scientists and industry leaders, the country is easing restrictions on certain business industries. Restrictions will be eased in South Africa for the following activities: Restaurants for ‘sit-down’ meals Personal care services, including […]

Verdant Capital supports key Inclusive Finance sector initiative on debt refinancing coordination

Verdant Capital has signed the Memorandum of Understanding (MOU) on “Coordinating among MIVs in response to COVID-19”. Verdant Capital has long collaborated with other market participants on such initiatives and recognizes the constructive outcomes for the viability inclusive financial institution (IFIs) that can result from coordination and transparency at this critical juncture for the sector. Specific measures among lender groups to ease the burden on such institutions – such as consolidated reporting and liquidity forecasting templates and coordinated reconsideration of financial covenant thresholds and repayment schedules – can immediately alleviate liquidity pressures that provide these institutions with the ability to replicate […]

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Receivables Finance: Innovative approaches to unlocking Access to Finance for African SMEs

Restricted access to finance for SMEs remains a roadblock to growth for economies worldwide. Economies across the African continent remain no different: in South Africa, where SMEs are estimated to employ between 30 and 50% of the workforce and contribute 20% of GDP[1], the estimated credit gap for SMEs in SA between $6 and $23 billion;[2] in Kenya, recent estimates put the MSME Finance gap as a percentage of GDP at 31%, totalling nearly $20 billion.[3] Similar estimates put SMEs providing 80% of the country’s employment and contributing 20% of GDP;[4] and  in Côte d’Ivoire, 2016 government reports indicated that […]


SPECIAL REPORT: One Size Does Not Fit All – Restructuring for Uncertain Times, from Verdant Capital

This sponsored content was written by Edmund Higenbottam and Patrick Ball, who serve, respectively, as the Managing Director and a Director of Verdant Capital. Verdant Capital is a leading specialist financial advisory firm that operates across Africa. A combination of factors is challenging the economic sustainability of financial institutions and other businesses large and small across Africa. Globally, the COVID-19 crisis and associated lockdowns have had the effect of “calling the end of a long bull market” that has run since the credit crisis of 2008. In most African markets, however, the bull market had already ended some years before […]