Access to Finance
Cash flow is the top priority for the success of many businesses as it impacts on daily operations, expansion plans and purchasing power.
Yet millions of entrepreneurs in Africa remain underserved by the formal financial sector. This presents opportunity for financial intermediaries to combine significant social impact with commercial sustainability.
At Captiva Africa, we draw on our deep local knowledge in our focus sectors to create new business models and partnerships to expand financial service options for the underserved businesses. One of the pressing needs for businesses in our target sectors is access to funding.
In this regard the Captiva team assesses the requirements for each business, and deter mines the optimal blend of funding required. We then work with financial intermediaries to develop innovative and sustainable financing solutions for both the entrepreneurs as well as the end users in the focus sectors.
We also help clients build financial knowledge and capabilities. This in turn enables the more informal entrepreneurs better manage their businesses in order to be more attractive to prospective funders. In addition this allows the entrepreneurs anticipate and protect their operations from risks, invest in their businesses and make better decisions regarding their funding requirements.
Captiva’s experience in our focus sectors has revealed that one key attribute of the BOP market is informality. Most BOP livelihoods come from self-employment or from work in businesses that are not formally organized entities. Informality is therefore a trap for the assets and a barrier for growth these businesses. In Uganda for example, the dead capital represented by informal capital- land in particular runs into millions of dollars.
Captiva Africa has helped increase the purchasing power of households and entrepreneurs in the BOP segments by assisting them unlock the wealth trapped in the assets of their informal economies. From example, as part of our fundraising efforts for informal businesses in Kampala, we have helped entrepreneurs unlock dead capital by assisting them incorporate their businesses and obtain title deeds for their properties.