How SME innovation, blockchain-enabled financing can change Africa

SMALL AND MEDIUM SIZED enterprises (SMEs) are a cornerstone of Africa’s economy, accounting for roughly 90 per cent of businesses and providing 80 per cent of employment.

Yet, many face barriers such as stringent collateral requirements, long approval timelines and limited access to traditional financing. Emerging blockchain-powered solutions are now offering more flexible, inclusive ways for SMEs to access capital, manage cash flow and scale their operations.

As SMEs continue to encounter hurdles such as stringent collateral demands, prolonged approval timelines and limited traditional financing options, blockchainpowered financial solutions are emerging as flexible and inclusive alternatives that enable entrepreneurs to scale their businesses on their own terms.

“Financial innovation is helping break down barriers for small businesses,” said Yande Nomvete, Operations Manager at Binance Africa“From crypto-backed lending to tokenised financing and Web3-based investment models, SMEs now have more options to access capital and manage growth efficiently.”

Crypto-Backed Lending

Crypto-backed lending allows entrepreneurs to use digital assets, like Bitcoin or stablecoins, as collateral for business loans without selling their holdings.

Blockchain-based verification and automated risk management streamline approvals, reduce collateral thresholds and provide access to lenders globally.

This flexibility helps SMEs manage cash flow, fund projects and pursue growth while maintaining long-term investment strategies and growth opportunities without disrupting their long-term investment strategies.

Tokenised and Venture Based Financing

Crypto-focused venture capital is supporting startup growth across fintech, AI, supply-chain management, digital identity and creative services.

In 2025, crypto companies raised over 16 US billion dollars in venture funding, up from 13.6 US billion dollars in last year.

Token-based investment structures allow founders more flexibility in ownership and governance, while onchain funding mechanisms enable access to a broader pool of global investors.

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These transparent, borderless approaches reduce friction and open opportunities for emerging-market entrepreneurs who may previously have lacked access to earlystage capital.

New forms of blockchain-powered financing are also taking shape. Tokenised asset financing enables SMEs to convert realworld assets like inventory, receivables and equipment into digital tokens that can be sold or used as collateral on global marketplaces, unlocking liquidity with less friction.

Similarly, revenuebased financing powered by smart contracts gives businesses a way to raise funds in exchange for a share of future earnings.

Payments are automated on the blockchain, creating transparency, reducing administrative burdens, and providing nondilutive funding tied directly to performance.

Web3 Crowdfunding and Community  Building

Entrepreneurs are also turning to Web3 crowdfunding, where token launches, membership NFTs, and decentralised funding pools make it possible to raise capital directly from global supporters.

This model not only provides funding but also builds a loyal and engaged community around a business from day one.

Stablecoins and CrossBorder

Payments SMEs engaged in international trade are increasingly adopting stablecoin-based payments, which enable faster settlement, lower foreign-exchange costs and protection against currency volatility.

In Sub-Saharan Africa, stablecoins accounted for 43 per cent of all crypto transaction volume in 2024, highlighting how deeply they are becoming embedded in business operations.

Globally, Binance Pay revealed that stablecoins account for over 98 per cent of B2C payments – highlighting their growing role as the preferred payment method. Blockchain-Enabled Supply Chain Finance The rise of blockchain-based supply chain financing is further strengthening SMEs’ ability to operate and scale.

By using tamper-proof onchain data to verify deliveries, product authenticity and transaction history, businesses can access more affordable and efficient financing options. This increased transparency reduces lender risk and enhances liquidity for suppliers, distributors and manufacturers.

In 2024, over 60 per cent of Fortune 500 companies reported that they incorporated blockchain into at least one segment of their supply chain operations.

Most recently, over 62 per cent of enterprises using blockchain supply chain finance said that the technology improved payment settlement speeds by more than 40 per cent.

“We believe that ongoing advancements in blockchain adoption and the crypto industry, such as Binance’s expansion across 30+ African countries, will empower SMEs to explore blockchainpowered financial solutions. By integrating with local payment systems and providing flexible, innovative funding options, these initiatives are set to become a key driver of growth and resilience for small businesses across the continent,” concludes Ms Nomvete.