What it takes to trust an SME before the bank does – Mopeli Lerotholi, CEO and Founder, Oricred

Sub-Saharan Africa's small and medium-sized enterprises (SMEs) face a paradox that has long frustrated both local entrepreneurs and international investors: access to capital remains the primary constraint on business growth, despite the continent's businesses demonstrating strong revenue potential and contract-winning capability. The disconnect between bankability and creditworthiness has created what industry analysts estimate as a $50 billion annual financing shortfall across the region. Traditional banking institutions, bound by rigid collateral requirements and risk-averse lending policies, systematically reject viable businesses that lack formal credit histories, substantial fixed assets, or established banking relationships. This conservative approach, while prudent from an individual bank's perspective, represents a systemic market failure with significant economic consequences. Consider the structural challenge: a Limpopo-based contractor secures a multi-million rand infrastructure contract—a validation of market demand and business acumen. Yet the contractor cannot execute the work without working capital for materials, labor, and equipment. Banks demand collateral the contractor doesn't possess. Equipment financing requires existing banking relationships. Supplier credit remains inaccessible without established track records. The result: a profitable contract remains unfulfilled, economic activity stalls, and potential employment never materializes. This scenario repeats thousands of times monthly across South Africa, Kenya, Nigeria, and other major African economies. The market