Dakar-based private equity firm M&A Capital and Open-Si, a Beninese technology company, announce the launch of the first alternative financing platform for SMEs in sub-Saharan Africa, through their M&A Fintech joint venture.

The platform operates under a reserved factoring model. It has been set up in partnership with large banks and decision makers.

According to the initiators, the goal is to provide a financial solution for SMEs facing liquidity needs to settle their short-term commitments. For instance, sometimes many SMEs have to wait beyond 120 days to receive their payments, while they should settle these commitments within a very short time and do not always have access to banking loans.

With the reserved factoring model, client companies will be able to order banks to pay suppliers (SME)’s invoices, sometimes just within 48 hours. The innovation lies in the fact that the whole process is dematerialized. The Senegalese private equity firm is really confident in its solution. “M & A Capital's mission is to invest and support African businesses,” said Ms. Aïssatou Le Blond, the group’s MD.  Open SI, for its part, recalls that “no aspect has been overlooked neither on functionalities nor on security aspect”. M&A Capital and Open-SI revealed no details on their partnership’s financial terms. Likewise, no detail was given on the distribution of shares in the capital of M&A Fintech joint venture.

Idriss Linge