Lending beyond the numbers: How credit access improves local economies
Credit boosts growth. With access to capital, small businesses can hire, expand, and build thriving local economies.
If you have ever tried to build a business without access to cash, you know that money moves more than just business. It moves people, powers dreams, and keeps entire communities alive.
That is why conversations about lending should go beyond numbers, interest rates, and credit scores because when credit flows into the hands of the right people, something powerful happens: local economies come alive.
Why credit access matters more than you think
Access to credit is a foundational building block of any economy. According to the International Finance Corporation (IFC) (download report here),
Yet, despite their economic importance, many of these businesses remain financially underserved. The IFC estimates that 40% of formal MSMEs in developing countries face an annual financing gap totaling $5.7 trillion. Let that number sink in.
That is not just a financial gap; it is also a growth gap because it represents trillions of unrealized dreams, unfulfilled orders, and untapped jobs.
The real-world impact of accessible credit
Let us dig into what happens when more people and businesses get access to the credit they need.
With financing, small businesses can move beyond day-to-day survival and start focusing on growth. Whether it is purchasing inventory, hiring staff, upgrading tools, or expanding into new markets, credit gives businesses the fuel they need to scale. In countries where creditor rights are protected and lending processes are streamlined, entrepreneurs face fewer roadblocks and more opportunities to innovate and expand
More financing equals more jobs. As small businesses grow, they hire more people and expand income opportunities in their communities. In tough economic times, credit can also keep businesses afloat, helping preserve jobs and maintain consumer demand. This is especially vital in Africa, where youth unemployment is high and SMEs are the primary job creators.
Credit does not just help people handle emergencies—it helps them plan. With access to responsible financing, individuals can build a more secure future. And when more people are included in the financial system, it creates a ripple effect that strengthens the entire economy.
So, yes, credit is about numbers, but it’s also about growth and people.
Empowering growth through embedded lending
At Salad Africa, we believe that access to credit should be frictionless, timely, and built into the everyday platforms people already use. That’s why we build embedded lending infrastructure that allows marketplaces and digital platforms to offer financing to their users. Because when people can access credit at the right time, from the right place, they do more. And when they do more, economies grow.
With our API-first solution, platforms can turn lending into a seamless part of the user experience, enabling more transactions, stronger retention, and, ultimately economic growth from the ground up.
Credit that builds more than profits
Access to credit isn’t just a financial service; it is a strategic lever for inclusive growth. When people and businesses can access the right capital at the right time, they can build, expand, and thrive.
Lending isn’t just about numbers. It’s about building local economies, creating jobs, and unlocking potential across Africa and beyond.
Interested in integrating embedded lending into your platform? Visit our website, www.saladafrica.com to learn more or book a demo today.
