account_balance_wallet Financing Sources
Financing fashion businesses in Africa

We know, looking for financial resources, is usually a daunting task and one of the main priorities for many entrepreneurs and businesses. The situation is even harder in some African countries and when we focus on the textile and apparel sector. “Getting credit” is the Doing Business indicator that presents the worse results in Sub-Saharan Africa (SSA), even behind “Getting electricity”. 41% of women-owned small and medium businesses interviewed in SSA for a World Bank study answered that “access to finance” was a major constraint (vs 36% of men-owned SMEs).

Through the Fashionomics initiative, the African Development Bank, wants to support the fashion sector in Africa, and this logically includes easing access to finance. The Bank in itself lends to other commercial banks and finances large investment projects. As part of the Fashionomics initiative, the platform will collect useful information relative to financing your business. Additionally, the Bank is defining the final configuration of the Fashionomics support with a long-term view on supporting the sector and developing partnerships with other financial providers.

If you are considering external financing for your business venture, we suggest that you register as a user in the Fashionomics platform and publish your needs in the “Business Opportunities” section. Our team will help you in case you need some support (write to info@fashionomicsafrica.org).

List of Financial Institutions

The table below contains an updated list of financial institutions in Africa with contact details (currently under construction):

account_balance_wallet Financing Sources List
Country Name Type Date
Côte d'Ivoire APBEF-CI (Association Professionnelle des Banques et Etablissements Financiers de Côte d’Ivoire) Other 16 Sep, 2016
Côte d'Ivoire SGBCI (Société Générale de Banques en Côte d'Ivoire) Other 16 Sep, 2016
Côte d'Ivoire BACI (Banque Atlantique Côte d'Ivoire) Other 16 Sep, 2016
Côte d'Ivoire BIAO-CI (Banque Internationale pour l'Afrique Occidentale) Other 16 Sep, 2016
Côte d'Ivoire SIB (Société Ivoirienne de Banque) Other 16 Sep, 2016
Côte d'Ivoire BOA-CI (Bank of Africa) Other 16 Sep, 2016
Côte d'Ivoire LA CAISSE D'EPARGNE Other 16 Sep, 2016
Côte d'Ivoire Bridge Bank Group Côte d'Ivoire (BBG-CI) Other 16 Sep, 2016
Côte d'Ivoire Standard Chartered Bank Côte d'Ivoire Other 16 Sep, 2016
Côte d'Ivoire BHCI (Banque de l'Habitat de Côte d'Ivoire) Other 16 Sep, 2016
Côte d'Ivoire UBA (United Bank for Africa) 16 Sep, 2016
Côte d'Ivoire Access Bank (Côte d'Ivoire) Other 16 Sep, 2016
Côte d'Ivoire COFIPA Investment Bank Côte d'Ivoire Other 16 Sep, 2016
Ethiopia Abay Bank S.C Other 19 Sep, 2016
Ethiopia Addis International Bank S.C Other 19 Sep, 2016
Ethiopia AWASH INTERNATIONAL BANK SC Other 19 Sep, 2016
Ethiopia Bank of Abyssinia Other 19 Sep, 2016
Ethiopia Berhan International Bank Other 19 Sep, 2016
Ethiopia Bunna International Bank Other 19 Sep, 2016
Ethiopia Commercial Bank of Ethiopia Other 19 Sep, 2016
Ethiopia Cooperative Bank of Oromia Other 19 Sep, 2016
Ethiopia Dashen Bank SC Other 19 Sep, 2016
Ethiopia Debub Global Bank SC Other 19 Sep, 2016
Ethiopia Development Bank Of Ethiopia Other 19 Sep, 2016
Ethiopia Enat Bank SC Other 19 Sep, 2016
Ethiopia Lion International Bank Other 19 Sep, 2016
Ethiopia Nib International Bank Other 19 Sep, 2016
Ethiopia Oromia International Bank Other 19 Sep, 2016
Ethiopia United Bank Other 19 Sep, 2016
Ethiopia Wegagen Bank, S.C Other 19 Sep, 2016
South Africa Bank of Baroda 07 Dec, 2016
South Africa Bank Of China Limited Johannesburg Branch (trading as Bank Of China Johannesburg Branch) 07 Dec, 2016
South Africa Bank of Taiwan South Africa Branch 07 Dec, 2016
South Africa BNP Paribas SA 07 Dec, 2016
South Africa JPMorgan Chase Bank, N.A. (Johannesburg Branch) 07 Dec, 2016
South Africa Bidvest Bank Limited 07 Dec, 2016
South Africa Sasfin Bank Limited 07 Dec, 2016
South Africa FirstRand Bank Limited 07 Dec, 2016
South Africa Nedbank Limited Other 07 Dec, 2016
South Africa Grindrod Bank Limited 07 Dec, 2016
South Africa Investec Bank Limited 07 Dec, 2016
USA LUEVO Other 16 Oct, 2017
USA Kickstarted Other 16 Oct, 2017
USA Attach Other 03 Nov, 2017
Nigeria Alitheia Capital Other 13 Nov, 2017
Nigeria Zenith Bank Other 13 Nov, 2017
Financial alternatives to banks

Some useful definitions:

Seed capital
The initial capital used to start a business. Seed capital often comes from the company founders' personal assets or from friends and family. The amount of money is usually relatively small because the business is still in the idea or conceptual stage.
Start-up
A startup is a company that is in the first stage of its operations.
Business angel or angel investor
Affluent individuals who inject capital for startups in exchange for ownership equity or convertible debt. Some angel investors invest through crowdfunding platforms online or build angel investor networks to pool in capital.
Venture capital
Venture capital is financing that investors provide to startup companies and small businesses that are believed to have long-term growth potential. For startups without access to capital markets, venture capital is an essential source of money.
Source: investopedia.com
Venture capital and Business angels

Traditional venture capital is structured through “Private Equity” firms. AVCA is the African Private Equity and Venture Capital Association:

www.avca-africa.org

Consult 2016 figures for Private Equity in Africa in this interesting report by EY and AVCA

The African Development Bank invest in the sector through investments in some of these Private Equity firms, like Africinvest, a Tunisian PE house with investments in retail companies, such as Maille Club Group (Algeria, Tunisia), Folly Fashion (Marwa - Morocco) or SIL (Societé Industrielle de Lingerie - Tunisia).

To attract this source of capital the fashion businesses need:

Micro finance

Through our research we identified that only 5% of the fashion SMEs in the two pilot countries (Côte d’Ivoire and Ethiopia) are getting financing through micro credits. In some African countries the micro finance institutions are well developed. This source of capital can be interesting for certain entrepreneurs and SMEs in the fashion industry but be aware that (based on our research):

Crowdfunding

The Fashionomics feasibility report covered the analysis of the potential of crowdfunding for the fashion industry in Africa.

The figure below describes the main crowdfunding platforms globally:

Additionally, there have been some crowdfunding platforms focused on African countries. Consult the list below:

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