Unlocking early‑stage debt for africa’s startup ecosystems

Despite a growing appetite for debt among young companies, appropriate early‑stage financing remains difficult to access, fragmented, and often poorly matched to real business needs. At the same time, debt providers face structural barriers: limited local‑currency funding, high due‑diligence costs, regulatory constraints, and a shallow pipeline of investment‑ready companies. To shed light on these gaps and identify practical ways to close them, FMO commissioned the Landscape Study on Debt Financing to Tech‑enabled Startup and Scale‑up Companies in Africa, drawing on extensive surveys, data analysis and interviews with early‑stage companies, debt providers and ecosystem experts.

Why it matters for startups, investors and DFIs

This report, developed in partnership with Dalberg Advisors, is designed as a hands‑on resource for startups seeking to understand their financing options, for impact and venture investors exploring debt models, and for development finance institutions and public actors working to improve local business ecosystems. Its insights aim to catalyze coordinated action across the entrepreneurial ecosystem, enabling early‑stage companies to access the right capital at the right time while supporting providers to build sustainable lending models.

Made possible by

This study was carried out under the Investing in Young Business in Africa (IYBA) programme, funded by the European Commission, which supports market‑creation efforts across key African markets. The research was executed in partnership with Dalberg Advisors, drawing on extensive surveys, data analysis and interviews with early‑stage companies, debt providers and ecosystem experts. It also reflects the combined expertise of FMO’s Ventures and Market Creation teams, who jointly led the work.