Category: Blog
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African Finance vs Western Finance: Why Africa Must Reclaim Its Own Model
For centuries, African economies functioned without modern banks, interest rates, or rigid collateral systems. Trade routes linked West Africa to North Africa and the Middle East. The trans-Saharan trade thrived on trust, reputation, and shared risk. In East Africa, Indian Ocean trade connected African merchants to Arabia and Asia through partnership-based commerce. Capital moved through…
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Africa Has the Capital. The System Is the Problem
Across the continent, domestic institutional capital held by pension funds, insurance companies, sovereign wealth funds, and development banks exceed $1.1 trillion. According to the Africa Finance Corporation, this pool is expected to grow significantly over the coming decades. Pension funds alone manage roughly $455 billion. Yet only a very small share of this capital flows to small and medium-sized enterprises…
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Working Capital Concerns for VCs and Private Capital in Africa — and Why Moneda Is a Critical Solution
Africa’s private capital markets have weathered a difficult 2022–2024 cycle marked by sharp risk-off sentiment, higher interest rates, FX volatility, and slower LP distributions globally. While activity is stabilizing, the liquidity crunch has exposed a chronic constraint at portfolio level: working capital. Long receivables, inventory bottlenecks, and expensive or scarce local credit have extended cash-conversion…