Nkafu Policy Institute Initiates Start Ups to Viable Funding

The Nkafu Policy Institute, on April 17th, 2024 organized an operational working group on the theme “Fundraising for Startups in Cameroon” during which the institute initiated enterprises to viable financial avenues as a means to boost their financial capital.

It was coordinated by Dr Merlin Mfondo, Executive Director of the Institute. Dr Adeline Nembot, Economic Policy Analyst at Nkafu Institute drew the attention of enterprises to solid financial sources which if explored, would enable the survival of business. The analyst called on enterprises to shift from traditional financing methods to emerging financing. She said start ups would have to shift from self financing and bank loans which are the usual traditional financial sources. Start ups would have to embrace emerging financing means that are trusted and viable for their take off and growth like peer-to-peer loan financing, business angels, initial coin offerings, corporate partnerships and strategic alliances. “Start ups should go above the traditional means of financing that we have because we know that the Cameroonian financial ecosystem would not permit them to really raise funds. There are so many constraints from the bank so they should go above the traditional to embrace the technological emerging channels that exist which are suitable for start ups” Adeline Nembot, Economic Policy Analyst at Nkafu Institute said concerning suitable methods of financing for start ups. Officials of the Nkafu Policy Institute noted that Cameroon benefits from a thriving startup ecosystem, characterized by a growing number of young companies who rather face challenges in sourcing finance to operate or expand and end up stagnant or quit business. This is the reason why the Nkafu Policy Institute brought together about twenty enterprises, drilling them on fund raising methods that would keep businesses stable.

Different start ups mingled and interacted during the Operational Working Group, sharing experiences. They exchanged ideas on government policy in relation to start ups, best practices for start ups when raising funds, creating networks, information sharing and adapting to market changes.

Heads of start ups who were from the primary, secondary or tertiary production levels agreed at the end of the session that the Nkafu Policy Institute has helped them to overcome challenges faced in financing. One of them is Tela Guiesse, scientific researcher, who pointed the element of trust as what she takes home from the session. “When we talk about start ups, most often they face challenges of funding. Though there’s money, there’s a question of trust in giving money because start ups most often haven’t got enough experience or enough guarantee. So the government can be useful here to play a part to fund start ups. People with start ups need to also develop strategies to convince people on how they can be trusted to receive funds and improve lives through their products and services”

Another satisfied participant was Ngezem Fortsomo Skyly, General Manager of Mockmbie Cooperative Credit Union who went back with success tips for start ups “I’m going back extremely satisfied because a lot of issues have been discussed and while working with those who do their best to raise funds, we’ve been able to identify lot’s of things that can help start ups particularly Cameroonians that are diving into new ventures to raise funds and make their enterprises successful. During this wonderful encounter, we discovered a lot of efforts from the government which are not really communicated because very few start ups are aware of the initiative of the government. While leaving here we retain that if you want to be a good start up, you must have a real business plan that is detailed and have a time bound”

The Nkafu Policy Institute is a nonpartisan, independent think tank at the Denis & Lenora Foretia Foundation in Yaounde, Cameroon. Its mission is to provide independent, in-depth and insightful policy recommendations that advance the Cameroonian economy and the economies of other sub-Saharan African countries.By By Mildred Ndum Wung

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