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Building the Funding Continuum: A Case for Supporting MSMEs in Fragile Contexts
- Fragile contexts in sub-Saharan Africa present various challenges including political and economic instability, poverty, inequality, and lack of access to basic services.
- MSMEs in fragile contexts face difficulties such as limited funding opportunities, weak infrastructure, and uncertain operating environments.
- Catalytic funding has emerged as a vital tool for supporting MSMEs in fragile contexts by providing seed capital, grants, and risk-tolerant loans.
- Technical assistance complements financial support by offering guidance, mentorship, and capacity-building initiatives to MSMEs.
- Investment facilitation plays a crucial role in linking MSMEs with investors and financial institutions to access growth capital for scaling operations.
- Sustaining a funding continuum through a holistic approach is essential for the long-term success of MSMEs in fragile contexts.
- Supporting the funding continuum is not only economically crucial but also a moral obligation to unlock the potential of MSMEs and drive economic growth.
- By providing the necessary support across different stages of MSME growth, development finance institutions can contribute to a resilient and prosperous future in sub-Saharan Africa.
- The article emphasizes the importance of building a sustainable funding continuum to address the complexities faced by MSMEs in fragile contexts.
- Duncan Lumwamu, the author of the article, is a Senior Advisory Specialist at The AECF.
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