Access to financial support is critical for traders in Africa to grow their businesses and contribute to the continent’s economic development. However, many African traders face significant challenges in securing funding due to factors such as lack of collateral, poor credit history, and limited access to financial services.
To address this challenge, the United Nations Capital Development Fund (UNCDF) has launched a new initiative called “2 Million Power,” which aims to provide financial support to two million traders in Africa over the next five years.
The initiative will focus on providing small loans, typically ranging from $50 to $5,000, to traders in African countries. This funding will enable traders to invest in their businesses, purchase inventory, and expand their operations. In addition, the initiative will also provide training and support to help traders develop their business skills and knowledge.
One of the key features of the 2 Million Power initiative is its use of digital technology to deliver financial services to traders. Many traders in Africa lack access to traditional financial services, such as banks and credit unions, which can make it challenging to secure funding. The 2 Million Power initiative will leverage mobile and digital technologies to deliver financial services to traders in remote and underserved areas.
In addition, the initiative will also work with local financial institutions to help them better serve the needs of traders. By partnering with banks and microfinance institutions, the initiative aims to increase the availability of financial services to traders, making it easier for them to access funding when they need it.
The 2 Million Power initiative has already begun operations in several African countries, including Burkina Faso, Côte d’Ivoire, Ghana, Senegal, and Uganda. The initiative has already provided loans to several thousand traders, with plans to expand to other countries in the coming years.
The initiative has the potential to make a significant impact on the lives of traders in Africa. By providing access to financial support and training, the initiative can help traders to grow their businesses and improve their livelihoods. This, in turn, can contribute to the economic development of their communities and the continent as a whole.