Next Wave: Can African banks pick up the startup funding baton?
- Sun King closed a $156 million securitization led mainly through commercial banks to finance solar products in Kenya.
- Stanbic Bank plans to raise $100 million through a Catalytic Fund to finance startups and SMEs across East Africa.
- Equity Group is shifting focus from government securities to customer lending, projecting a 10% rise in lending by year-end.
The increasing involvement of local banks in Africa's startup ecosystem is a promising development that could lead to a more sustainable and resilient innovation economy. However, it is crucial for banks to adapt their risk models and financing structures to meet the unique needs of startups, ensuring that they can provide the necessary support without compromising their financial stability.
