Despite Africa’s booming startup ecosystem, which boasts a value of $6.6 billion, the continent’s SMEs still find it challenging to secure equity funding . In addition to this, rising geopolitical tensions, global economic volatility and record inflation highs have created a more competitive fundraising environment, with investors becoming more risk-averse. It is clear that SMEs have a significant role to play in helping to realise Africa’s economic potential. But, in order to turn this potential into reality, there needs to be a shift away from traditional equity funding towards a more debt-focused approach. Debt is how the world creates wealth and at moderate levels it can improve welfare and enhance growth. As such, debt financing offers SMEs the ability to receive funding without having to dilute equity. Do you think that debt financing should be a priority in Africa ?

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