For a breakdown of West African transactions, visit our Dealmaker’s Log.
Cascador, a Lagos-based accelerator for growth-stage entrepreneurs, has partnered with Sterling Bank to launch a $200 million credit backstop fund for Nigerian small and medium-sized enterprises (SMEs).
Designed as an independent risk-sharing enterprise, the SME Credit Backstop Fund provides a defined credit backstop supporting up to $1 billion in outstanding credit capacity. It also creates a structured pathway to larger, longer-term loans and reduced collateral requirements for debt-ready SMEs.
Cascador said that in its experience working with Nigerian founders, one problem is common: access to tailored or suitable capital.
A newly published Cascador white paper, ‘The Multiplier Model’, found that only 22% of businesses across sub-Saharan Africa hold a bank loan or line of credit, compared with the 36% global average. It said this limited access to suitable debt financing has held back high-potential businesses from scaling.
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