You’ve decided to ask for a loan to get up and running, now it’s time to choose the right bank to suit your business needs.
By Craig Falck for Africa Report
Photograph: © Mikhail Mishchenko | Dreamstime.com
Asking a bank to lend you money to start your business is a big decision in itself, and it’s probably one of the smartest ones you could make because banks are strict with finance and will only lend to those businesses that they feel will have a good future. Here’s a quick look at some of Africa’s biggest banking institutions…
South Africa, as one of the most developed countries on the continent, obviously has a large number of banks that operate not only within its borders, but in a number of other African countries too. Banks such as Standard Bank, Absa bank, and FNB are all expanding their businesses into the continent as its economy gains momentum. This not only gives them an advantage over their competitors because of extra market share and clients, but also in that it means they are becoming well-known in a number of countries other than home. This method of expansion also allows them to become synonymous with assisting entrepreneurs and promoting a healthy and sustainable economy, which is what everyone in business strives for.
In the last few years, Kenya has risen to become one of the continent’s strongest economies, and it’s also a favourite for financial and investment conferences, evidenced by the number of events held there that Africa Report has looked at recently. It’s also clear that the country and its economy and financial regulations are held in high regard, because a number of African countries have branches of the Kenyan Commercial Bank operating in their borders, not to mention the fact that Kenya currently has some 42 different commercial banking businesses operating financial institutions in the country. That sort of variety gives the economy a great boost and is a sight for sore eyes for entrepreneurs – the choice of banks to apply for loans from is endless.
Morocco, in the far north of Africa, is relatively quiet in terms of international politics, but it too has a stable economy and strong banking legislation. This would also explain why, like Kenya, Morocco has bank branches scattered around a number of countries in North Africa as well as a healthy list of banking institutions in the country itself. It’s the perfect scenario for startups: they need financing, and right before them is a number of possible sources of finance. There are investment banks, commercial banks, major banks and a number of others that will be more than happy to lend money to the right businessperson.
Asking a bank for a loan should be any entrepreneur and startup business owner’s firs port of call for finance. Luckily for African businesspeople, a number of countries have healthy economies and a large variety of banking institutions. Now all that you need to do is start filling out those loan application forms and submit them!
