Embracing Crowdfunding: A Rising Alternative for African Entrepreneurs Amid Tightening Loan Standards

In the heart of his native Cameroon, a place where he had enduring roots, Badjang was resolved to defy the bandwagon. The mellow cadence of the bees humming around his neighborhood had hinted at a business prospect that led him to renounce his history course – a future immersed in the sweet allure of honey. He recalls his humble beginnings working from within the cozy confines of his mother’s kitchen, where he prepared and packaged the honey for sale. This simple home setup has now blossomed into a thriving venture, christened “Les Mielleries,” distributing honey sourced from over 200 local beekeepers.

Centrally based in the buzzing port city of Douala, the company filters and jars fresh honey for distribution. However, like many African entrepreneurs, Badjang faced a conundrum when looking to expand his firm. The impediment was not about visionary ideas; it was rather the scepticism of banks, hesitant to commit resources, doubting his capability of paying back a loan.

Discovering A Remote Investment Channel

In a twist of events, Badjang stumbled upon a feasible solution to his quandary last year. He learned about BlueBees, a crowdfunding platform on the cusp of launch, Bluebees – a France-based company – offered a promise of hope. This new wave of financing is already prevalent in regions such as Europe and the US. It enables entrepreneurs to reach out to the public via online platforms, allowing them to invest directly in the promoted business. Public users have the liberty to pick the schemes they invest in and determine the amount to be invested. While these platforms have often been associated with social or art projects, BlueBees specializes in connecting entrepreneurs from developing countries with European investors.

Emmanuelle Paillat, managing director of BlueBees, noted: “Jacques Georges is a serious entrepreneur. Due to the bank’s inaccessible nature in Cameroon, which demands security that Jacques couldn’t provide, he resorts to us.” “Les Mielleries,” Badjang’s honey-making business, became BlueBees’ first official project in Spring 2013, acquiring a loan of 20,000 euros ($26,900) from over 100 creditors. This investment did not agitate his recently quiet waters but proved to be a worthwhile venture. A swift six months later, Badjang had repaid the borrowed funds with ten percent interest, the gratifying clink of victory chiming louder.

Further Provides for Africa

Shortly after this, the “crowd” – BlueBees users – proceeded to finance various projects, such as soybean farming in Burkina Faso, a medicinal herb garden in Peru, and a leeches’ cooperative in Madagascar, among others. Other platforms like Fadev (Fonds pour le développement Afrique) and Babyloan have also emerged. Leveraging the African Diaspora as potential investors, Babyloan aims to raise 50,000 euros for 50 small business owners in Benin by 15 September 2014. Concurrently, AfrikStart from London and Ghana’s SliceBiz are getting ready to make their online debut.

Click here to delve deeper into crowdfunding and its impact on African entrepreneurs.

This article was updated in 2025 to account for emerging trends and modern realities within the dynamic world of business financing.

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