Nuevva is exploring new and innovative project finance routes, from international development subsidies to matching grants and loans for businesses operating in Africa, says Nuevva’s Matthew Bader.
“It’s amazing to see the variety of financing options that exist for Africa”, exclaims Bader. ”There’s an interesting sort of dichotomy, whereby on one hand businesses operating in Africa, especially the smaller ones, complain about a lack of access to financial products and services, and a lack of capital with which to pursue their products. While there is certainly a real problem here, the other side of the coin shows an amazing diversity of financing sources available, and almost every conceivable form of financial support for businesses operating in Africa.”
In recent years, governments in the United States and Britain, alongside banks and multiple public and private investment funds, have proclaimed their interest in Africa, in many cases pledging concessionary terms and even ‘free’ money for projects that can show a lasting benefit for the continent.
“The problem, in Nuevva’s view, is less about the existence of the capital than it is about creating a strategy that will allow your business access to it. Each of these dynamic and innovative funding opportunities has its own rules and structures, and the same business plan may need to be presented in four or five different formats, and from very different perspectives, to get the funders’ interest.” Bader continues “At Nuevva, we see a need to connect with as many specialized opportunities as possible to nurture the expertise that will allow projects we work on unprecedented access to successful funding raises. This is what we see as a major path forward for supporting African business.”