Strength in Numbers and Knowhow

Target Business Consultants PLC, one of the nine BASPs USAID CATALYZE works with in Ethiopia, provides training on financial analysis to senior financial management staff from SMEs in the agriculture, pharmaceutical, and manufacturing sectors. Photo: USAID CATALYZE

TRANSACTION CHALLENGES IN FRONTIER MARKETS

In frontier markets, demand and supply actors face multiple technical and cultural challenges to completing transactions. For instance, on the demand side, CATALYZE found that in Sub-Saharan Africa, SMEs operating in the agricultural, trade, or services sectors are often most familiar and comfortable with debt or grant finance; they tend to look for loans or grants for start-up capital and loans for working capital, capital expenditure, and operating expenditure. A limited number of later-stage and larger SMEs are familiar with and potentially able to attract equity finance, but they are the minority.

USAID CATALYZE works with BASPs to strengthen the competitiveness of women-owned SMEs. Photo: USAID CATALYZE

The role of BASPs in the transaction process

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