Summary
Micro, small, and medium enterprises (MSMEs) are the backbone of African economies; yet, historically, they have struggled to obtain the necessary finance because of the lack of collateral, financial records, and business plans.
Recent advances in technology and data analytics are shifting the paradigm. The adoption of digital channels, enhanced data analytics, innovative business models, and partnerships with fintech is making it increasingly viable for banks, microfinance institutions, and insurance companies to lend to MSMEs. For financial services providers that get this right, the rewards are promising.
This handbook provides a starting point for those that seek to develop advanced MSME lending strategies in today’s evolving digital MSME ecosystem.
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