The Rise of Alternative Lending and Crowdfunding Platforms in Africa

Access to financial resources is getting much easier.

In recent years, alternative lending and crowdfunding services have grown in popularity throughout Africa. These platforms open up new avenues for people and small enterprises to obtain financing that was previously unavailable through traditional banking methods.

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More Africans are obtaining access to the financial resources they need to establish and grow businesses, invest in their communities, and improve their lives, thanks to the rise of alternative financing and crowdfunding.

The following are some of the major causes driving the growth of alternative lending and crowdfunding platforms in Africa:

Traditional Banking Is Limited
Traditional financial services are inaccessible to many Africans. Only 43% of African adults have a bank account, according to the World Bank. This is due to a number of issues, including a lack of infrastructure, hefty costs, and stringent lending criteria. As a result, alternative lending and crowdfunding platforms have evolved as a source of capital for people and small businesses.