The operating and regulatory environments in many countries in Africa present a number of challenges to small and micro enterprises. From our experience, the informal enterprises do not have access to funding from the financial institutions, cannot participate in the value chain of the larger corporates or even get services from the utilities. Most informal entrepreneurs face barriers to scaling up and joining the formal economy on account of archaic regulatory regime and prohibitive requirements. There are scores of steps, many months of delays, documents, and capital requirements beyond the means of most entrepreneurs in the BOP.
Most informal entrepreneurs face barriers to scaling up and joining the formal economy on account of archaic regulatory regime and prohibitive requirements.
For example it has taken BDAs at Captiva Africa LLC almost a year to assist an entrepreneur obtain a title deed for the family property to enable him mortgage it to fund his sanitation business. This is no wonder as Kenya is ranked 164 out 185 for ease of Registering Property in the latest IFC/World Bank’s Annual Doing Business Index. Kenya and Uganda are ranked 122nd and 121st respectively in the overall rankings- with best ranking in Africa coming in at 39- South Africa.
As part of our systems approach to creating efficient and inclusive markets in our target sectors, Captiva Africa LLC works with government, the private sector and other policy influencers in the focus market system to initiate positive changes in the business environment. This is intended to encourage increased participation of the private sector in the early stage high impact sectors like water, sanitation and clean energy.
Our approach in helping initiate positive changes for a more business-friendly environment starts with gaining an understanding of and mapping the entire market system of the focus sectors. This allows us to identify the structural barriers to private sector activity and target the high impact market influencers in creating a more enabling investment climate for our clients and for the sector generally.