Some 200 participants from Africa and Europe, bringing together experts, lawyers, market regulators, bankers, financiers, entrepreneurs, business leaders …. , met on Thursday, November 15 in Dakar, to discuss the practices, issues and challenges of crowdfunding and participatory finance (FP) in Africa.
This forum, organized by the Association Financement Participatif Afrique & Méditerranée (FPAM) together with Jokkolabs, the French Development Agency (AFD) and the International Organization of La Francophonie (OIF), has the main theme: “innovation financial support for development “.
The forum tackled the issues and challenges of crowdfunding in Africa. According to the various stakeholders, these are innovative financing solutions, particularly for SMEs and startups.
During this first day, stakeholders discussed the issues and opportunities of Participatory Finance. Emphasis was placed on the legal regulatory framework (legislation), the alternative to traditional bank financing and its expansion in Africa.
Referring to the crowdfunding legislation in Africa, Thameur Hemdane, founder of Afrikwity & Cofundy and co-chair of the FPAM network, also moderator of the panel, said it is necessary for a good evolution of participatory finance.
For panellists, Africa in the midst of a digital boom will be able to fully enjoy participatory finance in a digital era. According to the statistics, digitization in Africa and the Middle East will bring 400 million people into the financial system by 2025. This will generate $ 758 billion in new deposits and $ 448 billion in new credits. for SMEs and individuals.
This momentum will reduce public spending and tax evasion by $ 20 billion a year.
Returning to Mobile Money, startups and fine tech, Jean louis Traore, president of the firm Urgence Consulting, explained that these innovations will help raise more funds in Africa.
The latest estimates show that the volumes mobilized (grant, loan and investment) in the world could be around $ 1000 billion, about 7.5 times the funds allocated for official development assistance.
Africa, which is in constant search of financing and innovative solutions, will have to seize this new opportunity.