Why Do Early-Stage African Startups Still Face Major Funding Gaps?

Why Do Early-Stage African Startups Still Face Major Funding Gaps?

Even fintech, which receives a large part of African VC funding, still faces a funding gap compared to its non-African peers. Financial inclusion is not lacking just for individuals in Africa; it is also lacking for businesses. Africa is a unique investment environment , and addressing the startup funding gap in Africa will take creative solutions. It may also require investors to rethink how they approach investments. Investors must make greater efforts to understand Africa's intricacies rather than imposing Western business models that simply do not apply. The importance of fintech in Africa Financial inclusion is a substantial issue in Africa. Currently, a majority of the African population is unbanked and lacks access to other standard financial services such as credit and insurance. Fintech offers viable solutions for improving financial inclusion in Africa. Poverty and lack of financial inclusion exist in a vicious self-reinforcing circle that is difficult to break. While fintech alone cannot solve the poverty dilemma, it can effectively lower many structural barriers to financial inclusion. By doing so, fintech can help break the poverty-inclusion cycle. Among the traditional barriers to financial inclusion in Africa are: Fintech organisations are also helping African citizens protect their money against risks