Talking about digital transformation, the World Bank commented that “Investors are missing out on the huge untapped market of African tech companies, partly because many African entrepreneurs “don’t speak the language required for investment …. It is also because African investors remain risk averse and tend to prefer investing in “something you can touch and see,” such as real estate over technology, which “is still a very new thing for the people who have capital in Africa.”
We do say that the untapped demand isn’t in the digitalisation only but principally in the real economy. We witnessed an ongoing building big infrastructural projects, public and private, which in our view, is just a part of the problem: AFRICA. A CONTINENT OF INVESTMENT OPPORTUNITY: People, Objectives, Strategy and Means.https://www.linkedin.com/pulse/africa-continent-investment-opportunity-people-means-ascanio-graziosi/.
The real question is to realise the Continent’s inclusive growth, which can be achieved having the entrepreneurs and financiers really committed to make it happen both start-up and growth-up activities, which are the backbone of the countries’ economy.
From our PRACTICE’s data it emerged that four out five MFIs ( the usual link in country-side) aren’t sustainable and it will be hard for them to face the market’ challenges, which can be summarised as follows: A – strong demand for technical and financial assistance from entrepreneurs, B – need of fresh resources to complement financial providers’ inadequate capital, C – launch sustainable and affordable Fintech products, D – review the style of management and decision making process of both lenders & entrepreneurs.
Under the above circumstances the use of financial leverage isn’t an easy job because it means to provide entrepreneurs with what they really need and doing it on a sustainable basis at an affordable price. Meantime the borrowers have to present sound projects.
On the other way, embarking on the digitalisation process without solving the above shortages couldn’t be advised. See Applying Financial Inclusion: https://ascaniograziosi.net/2017/08/18/669/
For more active involvement of the Development Actors, click: https://www.morebooks.de/store/gb/book/the-gateway-to-africa-inclusive-growth-jambo-fund/isbn/978-620-2-28375-5
As a matter of fact, there are UNDERSERVED ENTREPRENEURS and UNDERCAPITALISED LENDERS and the question is how to assist them to achieve common objectives and interests, both facing the following three big challenges: UNDERCAPITALISATION, DIGITALISATION and MANAGEMENT.
The job to bring together both actors requires experience and expertise above the ground. Our PRACTICE has accumulated years of daily exposure to evaluate the risk and to find out a welding point to finance valid, viable and sustainable projects via the focal point FACILITY WINDOW: https://ascaniograziosi.net
We will welcome valid and viable Funding Requests “speaking the language required for investment”: WB statement), aiming at expanding business along with real estate investment supported by good market perspectives and a strong business plan. Although we do have direct experience in eighteen African Countries, Initially, we will focus on Morocco, Tunisia, Kenya and Tanzania. Here we invite the Business Community in the related Countries to express their interest contacting ascaniograziosi@gmail.com and receive the Programme on Management and Financial assistance. This is also a great opportunity for both Microfinance/Microcredit/Bankers and Business Associations to join on behalf of their members.
Ascanio Graziosi 