The United Nations Capital Development Fund, UNCDF, has launched a $840,000 fund to support Gambian youth and women entrepreneurs with their businesses and skills training. 

The 3-year project dubbed crowdfunding, targets 8,000 small businesses to help youth and women entrepreneurs pool start-up funds and or access investments for their businesses or economic activities. It is funded by the European Union.

The UNCDF said in a statement that “Targeting 8,000 small businesses to raise funds amounting to USD $ 840,000 by April 2022, the new platform will connect young Gambians entrepreneurs to raise funds through families, friends and investors willing to support them in their journey through economic independence.” 

According to the statement, the project will test a different mix of crowdfunding models in particular, under the COVID-19 immediate response, the team will work to enable both business and social crowdfunding and launch the first donations-based campaigns focused on innovative solutions to fight the COVID-19.

Edwin Mensah, the Financial Inclusion Specialist for the JSF Programme said in the statement: “Crowd funding and peer-to-peer lending platforms, in particular, offer alternative financing options for youth entrepreneurs’ access to capital.”

He added: “With many young entrepreneurs looking to family and friends for start-up funds for their businesses, crowdfunding offers the possibility of pooling these funds in a formal structure and building a financial history which will allow financial service providers to better engage these entrepreneurs.”

Matthew Roberts-Davies, Director at Mobi Changa and Thunda Africa also said in the statement: “It plays an important global role during Covid-19 both in fundraising for health and medicine and supporting economic stability. 

“Crowdfunding in Africa is in its nascent stages, though activity across the industry has accelerated in response to Covid-19.”

Crowd-funding platform builds a support system, creates brand awareness, validates the products in the market, brings and shares the expertise and adds sustainability for future endeavours.

Reporting by Adama Makasuba