Experts look at new funding opportunities for Nigerian SMEs
As oil revenues drop, African governments are looking at ways to develop SMEs.Finance experts gathered on June 2nd at the LEAP Africa’s 11th CEOs Forum in Lagos to find new solutions to improve access to finance for small and medium-sized enterprises (SMEs).
As oil revenues drop, African governments and the private sector are looking at ways to develop SMEs and diversify their economy.
Yewande Sadiku of Stanbic IBTC Bank said many banks are still reluctant to give out loans to SMEs due to many factors such as their inability to provide suitable collateral to obtain loans, the Guardian reports.
Meanwhile, experts highlighted the DFID scheme, which is a grant given by the UK government to developing countries to fund SMEs that focus on solving social development issues including education, and health care.
With over 47 projects in Nigeria, it provides SMEs with a one-off, limited duration grant to absorb the risks and overcoming the challenges in a particular system, country or situation.
In addition, several successful entrepreneurs highlighted personal savings, angel investors and loans or grants from family and friends as viable sources of funding for SMEs.