"Unlocking Angola's Potential: Bridging the Financial Gap for MSMEs "

20 de December de 2023

Figure1: Illustraction by investright.org

In a country with a dynamic economy, Angola´s Micro, Small, and Medium Enterprises (MSMEs) add a burst of color, contributing significantly to job creation and economic vitality. Yet, these enterprises face a common challenge – limited access to finance. Taking this current landscape, the United Nations Development Programme (UNDP) in Angola offered to support the National Institute for Support to Micro, Small, and Medium Enterprises (INAPEM, in Portuguese) in the design of a crowdfunding platform, an online tool to connect entrepreneurs and SMEs looking for funding for their projects or businesses, to people with the money to fund them.  

Recognizing the indispensable role played by MSMEs in Angola's economic fabric, the crowdfunding Platform is hoped to be a digital reservoir where investors converge, prepared to satiate the ambitions of promising and vetted enterprises. The overarching vision is clear—to extend a lifeline for MSMEs, cultivating an environment wherein they can grow, innovate, and contribute dynamically to Angola's economic mosaic.  

What´s the extent of transformation we´re talking about? 

The primary focus is to serve as a conduit, linking the aspirations of entrepreneurs, start-ups, and SMEs with the resources necessary for their flourishing. As the online Crowdfunding Platform is soon to take flight, its significance transcends mere financing—it embodies the unlocking of potential, the fostering of economic development, and the creation of a more inclusive and sustainable future for Angola.  

For INAPEM, the crowdfunding platform will be an innovative mechanism that will allow entrepreneurs to showcase their products and services, and access new financing channels, increasing the chance of success of their businesses and the survival rate of SMEs operating in the country. Additionally, the platform is also seen as an opportunity for regular monitoring, ensuring transparency and reliability in collective financing campaigns, reinforcing the platform's commitment to positively impact Angola's startup ecosystem and contribute to economic development.  

Part of this work is around developing an effective tool and software that can best bring to life the needs of the MSMEs, however, there needs to be significant backstage work on regulation and legal frameworks that can enable innovative tools such as this to operate. Similarly, an alignment with effective digital payment methods is also required which in the Angolan context have been delaying the emergence and growth of many digital and technological services, with notable significant advancements in the last couple of years but still moving slowly with light footsteps given the level of risk that can sometimes be associated with digital financial systems and transactions. 

UNDP Angola is committed to supporting the government's initiatives aimed at empowering Micro, Small, and Medium Enterprises (MSMEs). By providing targeted support, fostering innovation, and facilitating access to resources that are taken as core for the sustainable development of these enterprises.