Empowering Africa’s Informal Businesses Through Financial Inclusion

An academic research paper that explores the intersection of entrepreneurship and financial inclusion within Africa’s informal business sector, has been accepted for presentation at the 20th European Conference on Innovation and Entrepreneurship, to be held in Krakow, Poland, on 25 and 26 September 2025. Authored by Dr van der Walt and Dr Hargarter, the study has been accepted and Dr van der Walt will present the paper at the conference where it will be published in the official conference proceedings. The research highlights how innovative financial strategies can empower informal entrepreneurs, enabling them to overcome systemic barriers and contribute more effectively to economic development.

Across Africa, informal businesses, especially small, medium, and micro-sized enterprises (SMMEs), are essential to local economies. Yet, many of these businesses face serious challenges because they operate outside formal financial systems. Without access to banking services, credit, or secure financial tools, their ability to grow and sustain themselves is limited.

Financial inclusion offers a powerful way forward. By creating financial products that are tailored to the realities of informal businesses, and by building trust and simplifying processes, financial institutions can become key partners in helping these businesses thrive. The idea is to move beyond traditional banking and build an ecosystem where formal and informal financial players work together. This kind of collaboration can help tackle issues like cash dependency, theft risks, and limited scalability.

A practical framework has been developed to guide this transformation. It uses SMART goal-setting to help financial institutions engage more effectively with informal businesses. It also encourages alternatives to traditional collateral, streamlined administration, and trust-building strategies.

Ultimately, the goal is to make financial services more accessible and appealing, even to those who are already bankable but still prefer informal systems. Looking ahead, there’s a need for practical tools and policy support to deepen financial integration and unlock the full potential of Africa’s informal sector.

 

DATE: September 2025  |  DISCLAIMER: The content of this blog is accurate at the time of publication. STADIO reserves the right to change the content due to changes in legislation, as well as for market requirements and other reasons