Small biz in Africa needs capital to grow; here’s how C2FO, World Bank member are bringing ‘much-needed liquidity’

A new strategic partnership between Kansas City-built C2FO and IFC, a member of the World Bank Group, is expected to enhance financing for local enterprises in Africa — bolstering job growth and economic prosperity in an underserved segment of the global market.

Sandy Kemper, founder and CEO of C2FO, speaks during a panel conversation at the 2024 SME Finance Forum in São Paulo, Brazil; photo courtesy of C2FO

“C2FO is honored and delighted to collaborate with IFC to broaden the global impact of our working capital finance model throughout Africa,” said Sandy Kemper, founder and CEO of C2FO. “We believe this innovative approach will provide much-needed liquidity to MSMEs (micro, small, and medium enterprises), helping them to grow and succeed.”

The partnership will see IFC and C2FO jointly develop, test, and deploy a specialized, web-based multinational working capital platform for MSMEs across Africa — beginning in Nigeria, where it is estimated that a national supply chain finance platform could unlock about $25 billion in annual financing for such businesses.

“It’s only natural that this work begins in Africa’s most populated country, Nigeria, which has an especially promising small business sector,” added Kemper.

This is IFC’s first dedicated supply chain financing facility in Africa for smaller businesses.

Leawood-based C2FO — an on-demand working capital platform, providing fast, flexible and equitable access to low-cost capital to businesses worldwide — recently was lauded with a global honor: the SME Financier of the Year-North America Award by the SME Finance Forum managed by the IFC.

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Sandy Kemper, C2FO, center, meets with IFC officials during a signing event for the organization’s new strategic partnership; photo courtesy of C2FO

In countries like Nigeria, Indonesia, and Brazil where community and regional banks don’t commonly exist — and the few available big banks don’t have time for small businesses — there’s an opening for companies like C2FO to create opportunities, Kemper told Startland News previously.

“For every million dollars that you put into the hands of a small or mid-sized business, 16.3 jobs are created,” he said, citing figures backed by the IFC. 

And while small business accounts for about half the GDP of the world, it makes up 90 percent of ventures and 80 percent of jobs across the African continent. That makes the strategic partnership between C2FO and IFC even more salient, said Ajay Banga, president of World Bank Group, noting such financing is critical for helping build more sustainable economic ecosystems, and for strengthening food security.

By utilizing C2FO’s patented technology and dynamic discounting model, the platform will connect MSME suppliers and their buyers with global and local financial institutions, enabling suppliers to improve their access to working capital through the financing of their accounts receivable.

“IFC is committed to addressing the financing challenges faced by SMEs in Africa,” said Makhtar Diop, managing director for IFC. “By partnering with C2FO, we aim to unlock significant funding opportunities for these enterprises, enabling them to thrive and contribute to economic growth.”

Sandy Kemper, C2FO, stands alongside IFC officials during a signing event for the organization’s new strategic partnership; photo courtesy of C2FO