Most micro, small and medium-sized enterprises (MSMEs) in Africa are unable to secure the working capital they need. An estimated 80% of African SMEs still lack access to formal finance, leaving the continent with an SME financing gap of approximately US$330 billion.[1]
To help address this challenge, the Trade and Development Fund (TDF) in partnership with Trade Catalyst Africa (TCA) and the Mastercard Foundation, are co-financing EASETRADE, a digital finance platform that will enhance access to finance for MSMEs in the agribusiness sector and various supply chains that experience cash-flow shortages and limited access to formal credit.
EASETRADE aims to support these enterprises by driving income growth for youth- and women-led business traders and exporters, with a particular focus on building business sustainability and resilience, deepening integration into regional and global value chains, boosting trade and improving livelihoods.
To deliver these outcomes, eligible businesses will access structured supply chain financing, including dealer finance and invoice discounting, enabling them to convert outstanding invoices into cash and access working capital more quickly.
This support is already reaching businesses. According to Mary Kamari, Executive Director, Trade and Development Fund —the programme’s implementing partner, TDF has executed a US$9.2 million financing agreement with Faulu Microfinance Bank, which is actively providing financing to MSMEs across a range of supply chains and agricultural value chains.
“EASETRADE isn’t just a credit line; it’s a lifeline,” says Duncan Onyango, Chief Executive Officer of Trade Catalyst Africa. “By blending rapid, data-driven lending with capacity development, we are empowering a new generation of agribusiness owners to fulfil large contracts, expand into export markets, scale operations and create thousands of jobs in rural communities.”
Rather than requiring collateral, the facility uses credit-scoring tools provided by SOLV Kenya, and Kaleidofin, two digital business-to-business (B2B) marketplaces, to determine creditworthiness beyond traditional tangible assets. This approach seeks to improve inclusion and access to capital for youth- and women-led MSMEs by focusing on business viability, transactions and cash flow.
In addition, entrepreneurs on the EASETRADE platform are benefitting from capacity-building workshops covering financial literacy, record-keeping, and digital skills, helping them gain the skills, expertise and networks required to manage and scale their businesses alongside achieving sustainable access to credit and boosting investor confidence.
“Equipping entrepreneurs with the skills to confidently and knowledgeably navigate lending processes is as important as injecting the capital, stated “Ms. Kamari. “This training is to empower MSMEs to understand and leverage data-driven credit scoring, positioning them to meet strict lender requirements. Ultimately, this will unlock the essential funding needed for business expansion, while simultaneously driving the creation of dignified and fulfilling employment opportunities for youth and women across various sectors” she added.
Over the next three years, EASETRADE aims to finance around 5,000 MSMEs and disburse $150 million in loans, train 6,400 enterprises in financial and digital skills, and maintain or create approximately 25,000 jobs in Kenya. The insights from this initial phase of the programme will pave the way for a wider roll-out across Africa, supporting small businesses to access affordable finance and have the expertise to utilise it effectively.
EASETRADE is supported by TDF, TCA, the European Union through TCA, and the Mastercard Foundation.
[1] African Development Bank, ‘Empowering Africa’s Growth Engines: AfDB’s Renewed Commitment to SMEs’, Our Africa, Our Thoughts (blog), 27 June 2025, https://blogs.afdb.org/economic-growth/empowering-africas-growth-engines-afdbs-renewed-commitment-to-smes-386
