SME financing

We'll explain: Embedded lending will drive economic development in Africa

Embedded lending makes financial access more inclusive by meeting SMEs on the platforms they already trust.

Lady Kay

Lady Kay

— 2 min read
We'll explain: Embedded lending will drive economic development in Africa
Image source: Abhishek Kirloskar/Unsplash

Can embedded lending drive economic development in Africa? We believe so

Imagine a fashion entrepreneur selling bespoke clothing items through an online marketplace like Konga or Jumia. With embedded lending, that marketplace can offer her access to working capital within the platform — no need to visit a bank, loan shark, or download a loan app. With this option, the fashion entrepreneur can access credit quicker and experience few barriers to growth.

Across Africa, small and medium-sized enterprises (SMEs) are the beating heart of the economy. They make up more than 90% of businesses on the continent and contribute significantly to job creation and GDP. Yet, access to credit remains one of their biggest obstacles.

Traditional lending systems are often inaccessible to many African businesses. High collateral requirements, lengthy application processes, and a lack of formal credit histories keep countless entrepreneurs locked out of the formal financial system. This is where embedded lending comes in — and why it could be one of the most powerful tools to unlock economic growth across Africa.

Why does embedded lending matter for African entrepreneurs and digital-enabled SMEs? 

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Embedded lending makes financial access more inclusive by meeting SMEs on the platforms they already trust. In a region where mobile and digital platform usage continues to grow, this proximity is crucial. It allows businesses to access credit based on real-time transaction data rather than outdated collateral models.
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With embedded lending, businesses don’t just survive — they scale. They can restock inventory quickly, expand operations, and fulfil bulk orders, all without cash flow bottlenecks. This ability to access timely credit means more productivity, more jobs, and more stability in local economies.
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As embedded lenders rely on digital transaction data to assess creditworthiness, more businesses are encouraged to digitise their operations. This creates a virtuous cycle: the more formalised the business, the more financing options become available — and the better their chances of long-term survival.
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Embedded lending also fosters a more connected ecosystem. When platforms become a source of capital, they evolve into powerful economic drivers. This interdependence incentivizes innovation in product design, supply chain logistics, and business models tailored to African realities.

Salad Africa approach's to economic development via embedded lending

Our Embed solution is designed to power this kind of transformation. By embedding lending infrastructure into the platforms that African SMEs use every day, we’re helping unlock the full potential of entrepreneurs across sectors — from construction to retail, food marketplaces, and agro-focused platforms.

We believe that when you fund SMEs, you fund economies. Embedded lending isn’t just a fintech trend. It’s a strategy for real, tangible economic development across Africa — one transaction at a time.

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