Nigerian firm launches $200M SME fund
The fund seeks to close a credit access gap that constrains the growth potential of a vital pillar of African commerce.
Nigerian investment firm Cascador and lender Sterling Bank have teamed up to launch a $200 million fund aimed at providing small and medium enterprises (SMEs) with much-needed access to credit. The initiative seeks to address a significant credit access gap that limits the growth potential of SMEs, which are a critical component of African commerce.
SMEs account for over half of the GDP in most African countries and employ the majority of the population, yet a financing gap of $331 billion hinders their ability to invest in production and stimulate growth revenue. A recent study by Cascador revealed that only 22% of businesses in sub-Saharan Africa hold a bank loan or line of credit, compared to the global average of 36%.
To tackle this issue, Cascador's new partnership with Sterling Bank will provide loans of up to $1 million per business, enabling enterprises to secure larger and longer-term capital.
Written by urgent.news from Semafor's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
