Market Players tackle funding challenges of SMEs
MDespite the daunting challenges, we remained steadfast in pursuit of our goals. However, the economic impact of COVID- 19 did not leave us unscathed.”
arket Players Board Chairperson, Gitau Mburu said they aim to mitigate the funding gap affecting Small Market Enterprises ( SMEs) across Africa.
He explained that in Africa, SMEs account for an estimated 80 percent of employment and their growth is not just business development but a mission of economic enfranchisement. Mburu said they have witnessed the struggle firsthand with the entrepreneurial spirit, but the barriers have been very high. “Accessibility to essential business resources is a constant hurdle. Only a fraction of SMEs have the means to secure a bank loan or line of credit, and the cost of capital is often prohibitive with interest rates soaring to levels that stifle ambition and innovation.”
The Market Players Report for 2023 highlights that youth unemployment remains a challenge that echoes across the African continent. “A challenge marked not only by the widespread unemployment in informal sectors but also failures to harness the full potential of our young workforce across the continent.” Market Players’ primary objective is to foster a thriving entrepreneurial culture among young people and women in the African Continental Free Trade Area ( AfCFTA). Mburu stated that in 2023, they successfully launched six impactful and inclusive initiatives as part of our commitment to empowering African youth and women entrepreneurs. He said through their concerted efforts they aim to mitigate the funding gap, affecting 51 percent of SMEs.
“Our resolve is to see these enterprises thrive, not merely survive. We envisage a future where our young entrepreneurs are not deterred by the lack of working capital but are propelled by access to resources and business development support services that fuel their growth.”
Through appointment of Pan- African board, Market Players have been able to expand its reach and work with entrepreneurship ecosystems in nine African countries, including Botswana, Ghana, Kenya, Liberia, Malawi, Nigeria, South Africa, Tanzania, and Zambia.
Mburu also stated that they have embraced the philosophy of blended finance, recognizing that the strategic use of such funds can mobilize private capital flows to emerging and frontier markets. “This approach has not just been a choice but a necessity to make entrepreneurship in Africa a viable path for our youth.”
In her remarks, Market Players Founder and Executive Director, Katlego Mokgethi said they want to improve the competitiveness of youth and women- owned startups and SMEs in Africa. “Despite the daunting challenges, we remained steadfast in pursuit of our goals. However, the economic impact of COVID- 19 did not leave us unscathed.” From July 2020 to December 2022, the organization implemented 10 entrepreneurship development initiatives in Botswana and South Africa, with a budget of just under $ 2,800. Mokgethi said the Market Players vision requires a collaborative effort from state governments, development agencies, academia, and the private sector. “As we continue our journey in 2024, we hope to see more entrepreneurship ecosystem players embrace our vision to harness Africa’s demographic dividend through entrepreneurship.”