While the UK's recent partnership with Invest Africa and the 2025 Africa Debate shows momentum in strengthening UK-Africa ties, the focus remains heavily weighted on macroeconomic issues, debt, and large-scale investments. What’s missing is a clear and deliberate focus on MSMEs and micro-lending – the backbone of sustainable, inclusive, and smart growth. 

Increasing access to financial services

For many, Africa is seen as a burgeoning investment hub – a continent that is exponentially improving its access to technology. While this may be the case for some regions, others are still left behind, excluded from traditional finance. This is exactly where private investment and capital can step in and act as a catalyst for growth in underserved markets.

Consider smallholder farmers, long barred from accessing critical capital due to their lack of credit history and collateral. Yet advancements in technology mean that even the most remote farmers can be assessed for creditworthiness with drone technology, mobile banking, satellite history, and more. Investors can now rest assured that smallholder farmers are a sound and reliable investment.

This investment in a previously excluded population is helping close long-standing gaps in financial access, as private capital offers a sustainable, scalable solution that can reach people at the grassroots level. Microfinance groups can provide nimble and tailored financial services which directly power financial inclusion, job creation, and regional development. UK investors can earn on returns and be part of a wider story that focuses on unlocking human potential and building more inclusive economies.

Thanks to technology, groups once deemed ‘too risky’ are having their moment in the sun and receiving much-needed investment. And the sector is showing no signs of slowing down. As technology improves, its reach improves, going farther than traditional finance ever has. Despite traditional finance conjuring up images of bank tellers offering a human touch, and fintech as full of artifice, it’s the latter that is improving efficiency and becoming more human. Fintech platforms are increasingly designed with real users in mind, reflecting the day-to-day realities of rural life. The space is dynamic and fresh, and a perfect opportunity for investors who are seeking action and opportunity.

Supporting women-led enterprises

Despite gender equality being a known factor in advancing sustainable development, women still face hurdles, especially in the informal sector, with 37% of women in Eastern and Sub-Saharan Africa struggling to access a bank account. Scores of women face ongoing battles in accessing credit, receiving tailored financial products and promotions to leadership positions. Despite the challenges, these women persist, often running successful businesses that directly serve their local communities.

This is where targeted private capital can make a huge difference as its investments can unlock untapped potential, driving innovation and fostering inclusive growth across communities. Microloans and mentorship built with women in mind can go a long way in encouraging and sustaining millions of capable entrepreneurs. Far from being a charity initiative or a handout, these strategic investments are smart business moves – women reinvest more in their families and communities, and can very often stretch investors' capital when given the chance.

Driving local employment and skill development

Despite private capital and fintech’s proven ability to foster growth, caution still persists among investors. But they should rethink their strategy and look at the reality, not the headlines. Challenges exist, yes, but they’re diminishing. Instead, vibrant and flourishing economies are thriving alongside increasing political and regulatory stability, and seismic technological shifts that are substantially lowering the risk for investors. 

Far from being a market opportunity, this is a chance for investors to contribute to the future of global growth in a sustainable, inclusive, and innovative way. Supporting African MSMEs will lead to meaningful outcomes such as job creation, skills development, local employment, and improved community livelihoods. For investors concerned about risk, working with experienced local partners, conducting thorough due diligence, and adopting a long-term perspective can provide effective safeguards. Investment in this space does not require a trade-off between financial return and social impact as many MSMEs are active in high-potential sectors like agriculture and fintech. With access to the right capital and expertise, these enterprises are well-positioned to deliver solid returns.

For UK investors seeking long-term value and scalable growth, this is the intersection of impact and innovation that they’re searching for. Engaging at the grassroots level supports broader economic inclusion and stability, while offering significant opportunities for both investors and the communities they serve. This is where UK investment can truly make an impact.

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